Amid growing buzz around Reliance Industries Limited-backed Jio Platforms’ initial public offerings, telecom users can see a 12% tariff hike over the coming three to four months. The pricing environment has become favourable due to the presence of limited players in the industry. Hence another 12-15% tariff hike is expected over next three to four months, according to a Centrum report.
The brokerage highlighted that the limited number of firms in the telecom industry has made the pricing environment more favourable.
“Reliance Jio and Airtel are also seeing strong traction in terms of 5G FWA and fixed broadband addition as penetration in the segment remains low. The pricing environment has become more favourable with only 3+1 players and we expect another 12-15% tariff hike over next 3 to 4 months,” stated the report.
Tariff hikes are among the biggest growth levers for the Reliance Jio IPO. The company has also said that its ARPU has significant headroom for growth. 2G upgrade, home broadband penetration, enterprise SME, AI automation, stellite are among the key growth levers for Jio Platforms.
Reliance Jio has the potential to increase mobile tariffs but it would prefer to drive revenue growth by offering digital services to customers, said Managing Director of Jio Platforms, Akash Ambani.