Reliance Jio holds off tariff hike despite rising ARPU

India’s largest telecom operator, Reliance Jio, has stated that it has no immediate plans to raise tariffs. In recent months, both Jio and Airtel have removed their 1GB daily data plans from their offerings, aiming to encourage customers to pay slightly more to keep their SIMs active.

Anshuman Thakur, Head of Strategy at Reliance Jio, explained during the company’s Q2 FY26 results call with analysts: “We are nudging consumers to consume more and happily pay more, but there are no immediate plans for a tariff hike.”

Following the tariff increase implemented in 2024, Jio’s average revenue per user (ARPU), which had previously appeared stagnant, has shown steady improvement. The company reported an ARPU of Rs 211.4 at the end of Q2 FY26, up from Rs 208.8 in the previous quarter. As data consumption continues to grow, ARPU is expected to rise further.

Jio has also reduced the availability of its annual plans, which had previously placed downward pressure on ARPU. Most customers are now subscribed to short- or medium-term validity plans, which generate revenue more frequently and have contributed to sustained ARPU growth.

Why raising tariffs is essential for telcos

For telecom operators, raising tariffs has become an important mechanism for maintaining and improving average revenue per user. Jio’s recent performance underscores this relationship. The company’s ARPU rose to Rs 211.4 at the end of Q2 FY26, compared with Rs 208.8 in the preceding quarter, following the 2024 tariff adjustment.

This improvement demonstrates how tariff revisions can directly strengthen revenue per subscriber, particularly as data usage continues to expand. Jio’s decision to scale back annual plan offerings, previously a drag on ARPU, has further encouraged users to opt for shorter-term plans, providing a more consistent revenue flow and supporting long-term ARPU growth.

For the broader telecom sector, periodic tariff reviews are not merely a reaction to rising operational costs and network investments but are essential to maintaining sustainable business economics in an environment defined by high data consumption and intense competition.

A recent JP Morgan study noted that if Reliance Jio does not raise tariffs in the coming months, its year-on-year ARPU growth for the March 2026 quarter would likely be around 4%, reaching approximately Rs 214 per subscriber. The report also stated that investors expect Jio to increase tariffs before its proposed initial public offering (IPO), anticipated by June 2026.

With over 500 million subscribers, Jio remains India’s largest telecom operator. The company added 8.3 million mobile users in Q2 FY26, bringing its total subscriber base to 506.4 million. Jio has also seen strong growth in its 5G user base, which rose from 213 million in the previous quarter to 234 million by the end of Q2 FY26. Notably, 5G users now account for around half of Jio’s total wireless base.