Reliance Jio Infocomm Ltd, India’s largest telecom operator, has surprised analysts and investors by choosing not to raise mobile tariffs in the near term. Instead, the company is focusing on expanding data usage and deepening its 5G and broadband footprint to grow revenue—signaling a strategic pivot from pricing to consumption-led growth.

A Different Playbook: Driving Data, Not Prices

While many in the market expected Jio to hike tariffs by the end of 2025, the company’s head of strategy, Anshuman Thakur, made it clear that “there are no immediate plans for a tariff hike.” Instead, Jio is nudging consumers to “consume more and happily pay more,” betting that higher data usage and 5G adoption will lift revenues organically.

In the September 2025 quarter, Jio’s average revenue per user (ARPU) grew modestly by 1.2% to ₹211.4, compared to ₹208.8 in June. This growth, though slower due to promotional 5G offers, reflects steady user engagement. Meanwhile, J.P. Morgan forecasts that if Jio maintains current pricing, its ARPU could rise to around ₹214 by March 2026—a 4% year-on-year increase.

Despite holding tariffs, Jio continues to expand aggressively, adding 8.3 million new subscribers in the September quarter to reach 506.4 million total users. Of these, 234 million are 5G subscribers, now making up half of Jio’s total wireless traffic.

The Broadband Blitz: Building the Next Growth Engine

Beyond mobile, Jio is racing ahead in the broadband space. The company is adding over one million new home connections every month, pushing its fixed broadband user base to 23 million. Jio’s ambitious goal—100 million home broadband customers—positions it as a central player in India’s digital transformation.

This surge is being powered by Jio’s Air Fibre and fiber-to-the-home (FTTH) technologies, which simplify and accelerate installation. According to Thakur, the “wireless route” has made deployment faster and easier, enabling Jio to scale up rapidly across urban and semi-urban India.

The broadband push not only drives new revenue streams but also strengthens Jio’s ecosystem of digital services—from streaming to smart home solutions—creating long-term customer stickiness.

The AI Factor: Collaboration with Reliance Intelligence

In parallel, Jio is deepening its technological capabilities through Reliance Intelligence (RI), the AI arm launched by parent company Reliance Industries Ltd. in August 2025. The partnership between Jio and RI is designed to accelerate innovation across telecom and digital services.

While RI focuses on developing AI infrastructure and products, Jio will deploy these solutions across its platforms—ranging from network optimization to consumer applications. Unlike global tech firms, RI isn’t building its own large language models (LLMs) yet but is concentrating on applied AI solutions that deliver immediate business value.

This dual structure—RI creating core AI systems and Jio implementing them—reduces costs, improves integration, and helps Reliance build a robust digital ecosystem that could eventually monetize enterprise AI workloads and India-focused digital services.

The Market Context: Tariff Leadership and Competitive Balance

Jio had previously led a 12–25% tariff hike in July 2024, its first in over two years, which prompted similar moves from Bharti Airtel and Vodafone Idea. However, while Airtel’s leadership continues to advocate for higher tariffs to improve profitability, Jio is charting its own course.

Airtel’s MD Gopal Vittal recently noted that India’s telecom rates remain among the lowest globally, urging a structural rethink of data allowances and pricing models. Yet, Jio appears content to leverage data consumption, network efficiency, and new services rather than risk customer churn through another immediate hike.

Analysts at Antique Stock Broking echo this sentiment, highlighting that Jio has “other levers like unlimited 5G slabs and FTTH expansion” to drive ARPU growth, even without changing prices.

Financial Performance and Outlook

In the September 2025 quarter, Jio Platforms Ltd—which houses the telecom and digital services businesses—reported a 12.8% year-on-year jump in net profit to ₹7,375 crore, with revenue rising 14.6% to ₹36,332 crore.

This steady growth underscores the success of Jio’s broader digital strategy—one that integrates connectivity, content, cloud, and AI into a seamless ecosystem. Analysts expect Jio to maintain this momentum while preparing for its proposed IPO by mid-2026, which could redefine India’s telecom and technology investment landscape.

Takeaways

• No tariff hike—for now: Jio is prioritizing user growth and data consumption over immediate price increases.
• 5G and broadband expansion: The company’s rapid rollout of home broadband and 5G Air Fibre will anchor its next revenue wave.
• AI-driven efficiency: Collaboration with Reliance Intelligence positions Jio to leverage AI for cost savings, innovation, and deeper platform integration.
• Sustained profitability: Despite moderate ARPU growth, Jio’s expanding user base and diversified services continue to fuel strong financial results.

In essence, Jio is betting on scale, speed, and smart technology—not higher tariffs—to drive the next phase of its digital dominance.

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