Jio surpasses China Mobile as world’s top data traffic operator

Reliance Jio has outpaced China Mobile to become the top global player in data traffic consumption, according to global analytics firm Tefficient. Their data for the January-March quarter shows Jio's traffic soaring to 40.9 exabytes, exceeding China Mobile's 38 exabytes. Jio's 5G user base, now at a staggering 108 million, ranks second globally, with these users contributing more than 28% of the total traffic.

Tefficient shared a post via X, "The total traffic on the Jio network has reached 40.9 Exabytes compared with China Mobile’s 38 Exabytes during the January-March quarter, according to global analytics firm Tefficient. (it should be 38.9 for China Mobile)."

“The monthly usage per AirFibre (FWA) subscription is 390 GB, 30% *higher* than for a JioFiber subscription,” it says.

Jio credits this success to its growing JioBharat phone users and the popularity of its enticing unlimited 5G offers, which, while boosting user numbers, have put a slight strain on its average revenue per user (ARPU).

Analysts predict that Jio's rapid user acquisition and market share expansion will translate into higher revenues, especially post-elections when tariffs are expected to rise. Its home broadband service, AirFiber, has also seen a surge in demand, serving customers in 5,900 towns and boasting an average daily data usage of 13 gigabytes per subscriber, significantly higher than its counterparts.

Jio's ARPU remains at ₹182. Analysts attribute this to the influx of low-cost JioBharat phone users and the ongoing promotional 5G plans that have kept ARPU stagnant.

Brokerage firm JP Morgan highlighted that Jio's competitive 5G pricing has led to a significant portion of its network usage being free, affecting its revenue streams.

In contrast, Bharti Airtel, Jio's closest competitor, has seen a lower data consumption per user but is experiencing an upward trend in revenue, with an estimated ARPU increase from ₹200 to ₹211 by the end of FY24. Analysts emphasise that for telecom companies to capitalise on 5G services effectively, raising headline tariffs will be pivotal.

Reliance Jio Infocomm reported a 13% YoY surge in net profit to ₹5,337 crore for the quarter ended March 31, 2024, as against ₹4,716 crore profit reported in the same quarter the previous year.

Additionally, the telecom operator saw an 11% rise in revenue from operations, reaching ₹25,959 crore in the fourth quarter compared to ₹23,394 crore in Q4 FY23.