Reliance Jio reports a 10.9 million drop in customer base last quarter while ARPU rose

India’s largest telecom operator Reliance Jio on Friday reported standalone net profit up about 24 percent to Rs. 4,173 crore for the fourth quarter ended March 2022 amid better realization per user, helped by tariff increases, better subscriber mix and ramp-up of FTTH services.

Standalone revenue from operations increased about 20.4 per cent year-on-year to Rs. 20,901 crore.

Mobile SIM consolidation following last December’s tariff increase resulted in a net reduction in subscriber base of 10.9 million in Q4 FY22.

For Jio Platforms – the entity that holds telecom and digital businesses – consolidated net profit for the just ended quarter was Rs. 4,313 crore, up almost 23 per cent year-on-year. Gross receipts for the March quarter 2022 came in at Rs. 26,139 crore, up nearly 21 per cent.

The total subscriber base was 410.2 million in March 2022, while ARPU – a key metric for all telecoms – rose to Rs during the quarter. 167.6 per subscriber per month.

The average revenue per user or ARPU has been fixed at Rs. 151.6 per subscriber per month in the December quarter.

“ARPU for the quarter of Rs. 167.6 per subscriber per month recorded healthy growth of 21.3 percent year-on-year and growth of 10.5 percent quarter-on-quarter,” parent company Reliance Industries said in a statement.

Total traffic for the quarter was 24.6 billion GB, a 47.5 percent growth.

Jio Platforms’ gross revenue for the full FY22 rose to Rs.95,804 crore, up 17.1 percent from the previous fiscal year (adjusted for interconnect usage fees), the company statement said.

Jio Platforms net profit for FY22 was Rs. 15,487 crore, up 23.6 per cent from the previous FY.

For the financial year ended 31 March 2022, the consolidated PAT of telecom services arm Reliance Jio increased by approximately 23 per cent to Rs. 14,854 crore compared to Rs. 12,071 crore in FY21.

Annual revenue from operations increased by about 10.3 per cent to Rs. 77,356 crore in 2021-22.

“SIM consolidation following the December 2021 tariff increase resulted in a net reduction in subscriber base of 10.9 million in Q4 FY22,” the statement said.

Gross subscriber growth remained strong with total gross growth of 35.5 million in Q4 FY22, with continued traction in mobility and FTTH (Fiber to the Home) businesses, it added.

During Q4 FY22, average data and voice consumption per user per month increased to 19.7 GB and 968 minutes respectively.

“Jio is now the #1 FTTH service provider in the country with over 6 million premises connected. Jio customers spend an average of five hours a day using the set-top box,” the company said.

Jio has conducted extensive 5G field trials in eight US states and tested an extensive range of products including M-MIMO, macro, outdoor and indoor small cell.

“The maximum user throughput achieved in these trials was over 1.5 Gbps. Interoperability and interoperability between multiple vendors has also been verified,” the statement said.

Spectrum liability weighed on RIL with a net debt of Rs. 34,815 crore during the reported quarter.

RIL’s Joint Chief Financial Officer Srikanth Venkatachari said during a earnings call that there had been a strong performance on the digital side but there had been a change in net debt due to the refinancing of Rs high-priced spectrum liabilities. 30,971 crores.

Jio had prepaid Rs. 30,971 crore spectrum fees to the government in January.

Jio Platforms President Kiran Thomas said the company is building a 5G network to get closer to consumers and the launch of the services is expected to happen soon.

He went on to say that Jio has become the leading provider of fiber-based broadband connections, adding twice as many connections as the rest of the industry combined.

The Indian market is gearing up for the launch of 5G services that will usher in ultra-high speeds and bring about new offerings and business models.

The countdown to the mega-frequency auctions has begun and telecom regulator Trai last month recommended a roughly 39 percent reduction in the reserve or floor price for the sale of radio waves for mobile services, including the latest 5G offering, as they The industry’s ability to pay seemed to be meeting sales expectations.

Trai’s latest recommendations will lay the groundwork for spectrum auctions in 2022 to facilitate the roll-out of 5G wireless services by private telecom operators in 2022-23.

The government is expected to hold a 5G spectrum auction in early June, Telecoms Minister Ashwini Vaishnaw said recently. The Department of Telecom is working according to the expected timeline and the process is underway to address industry concerns about spectrum pricing. Reliance Jio reports a 10.9 million drop in customer base last quarter while ARPU rose

Ryan Sederquist

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