MUMBAI: Reliance Jio Infocomm Ltd had raised tariffs between 14% and 54% in December. One would have expected this to boost its average revenue per user (Arpu) in the March quarter.
The company had also started charging subscribers a fee for outgoing calls outside its network, which tilted its outgoing-incoming call ratio.
As a result, from being a net payer of interconnect usage charges (IUC), Reliance Jio has become a net receiver of IUC, with off-net incoming calls now exceeding off-net outgoing calls.
Keeping these two factors in mind, some analysts were expecting a decent growth in Arpu but Reliance Jio reported a mere 1.7% sequential growth in Arpu for the March quarter. “The gains from IUC receipts account for most of gain in Arpu.