Reliance Jio’s New Tariff Plans Will Help It Earn More From Every User

Reliance Jio Infocomm Ltd.’s services just got costlier.

The country’s newest telecom operator will now offer more data but for fewer days on its prepaid plans. Revised tariffs will let the Mukesh Ambani-led company earn more from every user, according to a report by brokerage Kotak Securities.

The effective monthly average revenue per user will rise by as much as 46 percent on certain prepaid plans, the report said. ARPU is a key metric for telecom companies and offers an insight into their total sales.

Reliance Jio’s new plans should provide the industry an opportunity to stem the free fall in per-user revenue in the past three quarters, Kotak Securities said. Rivals have been locked in a tariff war with Reliance Industries Ltd.’s telecom arm after it started by offering free services in the first six months. The wireless carrier began charging in April but kept plans cheaper.

India’s top three telecom companies’ ARPU was in the range of Rs 142 to Rs 158 in the three months ended March.

Reliance Jio now offers 12 prepaid plans starting at Rs 19 a month and going up to Rs 9,999. The company also launched two new plans — Rs 349 and Rs 399 — under its prepaid and postpaid schemes. The one-time charge on Prime membership stays as it is.