ARPU growth key to Jio’s telecom strategy: 5G and data drive increase

By the end of Q2 FY26, Reliance Jio’s total subscriber base had risen to 506.4 million, up from 498.1 million in the previous quarter. The telecom operator’s Average Revenue Per User (ARPU) also saw an increase, climbing from Rs 208.8 to Rs 211.4. This growth was accompanied by a significant rise in data traffic, which surged from 54.7 billion gigabytes to 58.4 billion gigabytes over the quarter. Voice traffic saw a marginal increase, moving from 1.49 trillion minutes in Q1 FY26 to 1.50 trillion minutes in Q2 FY26. During its quarterly results, Jio confirmed that its 5G offering had played a key role in driving ARPU growth.

A primary factor contributing to the increase in ARPU appears to be the sharp rise in data consumption. Per capita data usage reached an impressive 38.7 GB per month, reflecting greater engagement with data-heavy services such as video streaming, cloud applications, and possibly AI-driven tools offered within Jio’s broader digital ecosystem. As users consume more data, many upgrade to higher-tier plans or exceed data limits, directly contributing to revenue growth.

Another major contributor is the expansion of Jio’s 5G network. The company reported that its 5G subscriber base had grown to 234 million, and 50% of its total wireless traffic now runs on the 5G layer. The enhanced speeds and lower latency of 5G are likely prompting customers to shift to premium plans, thus increasing ARPU. Additionally, 5G enables new revenue streams, including enterprise-grade solutions and cloud-powered services like JioAICloud and JioPC. Jio acknowledged that 5G adoption is a clear driver of its recent ARPU improvement.

During the quarter, Jio also added 8.3 million new users, reflecting strong subscriber momentum. While user growth alone doesn’t always translate into higher ARPU, Jio’s ability to maintain a low churn rate of 1.9%, one of the lowest in the industry, indicates healthy customer retention and satisfaction. The combination of a stable user base and rising data consumption supports consistent, recurring revenue generation.

In the fixed broadband segment, Jio now has 23 million home connections, a number that is expected to contribute to higher blended ARPU over time, particularly as households opt for bundled or premium services. Meanwhile, the relatively flat growth in voice traffic reinforces the ongoing industry shift from voice to data as the primary revenue driver.

Overall, Jio’s ARPU growth reflects its strategic focus on digital expansion, premium service adoption, and 5G monetisation. These elements are essential for sustaining revenue growth and funding the next phase of infrastructure development in India’s competitive telecom landscape.

What is ARPU and why It matters

Average Revenue Per User (ARPU) is a critical financial metric in the telecommunications sector. It measures the average monthly revenue generated from each subscriber and serves as a key indicator of a telco’s financial health, pricing strategy, and customer value proposition. A rising ARPU typically suggests improved monetisation of services, successful promotion of higher-value offerings, or increased user engagement and data usage.

For a telecom provider like Reliance Jio, operating in one of the world’s most competitive and price-sensitive markets, ARPU growth is especially significant. It helps improve profit margins, funds large-scale infrastructure projects like the 5G rollout, and supports the expansion of digital services such as JioAICloud and JioPC. Additionally, strong ARPU performance reassures investors and stakeholders by showcasing a sustainable, scalable revenue model.

Jio posts strong Q2 FY26 financial results

India’s largest telecom operator, Reliance Jio, announced its Q2 FY26 results last week, reporting robust financial growth. Quarterly revenue rose by 14.9% year-on-year to Rs 42,652 crore, while EBITDA reached Rs 18,757 crore, up 17.7% from the same period last year.

The company had previously announced its achievement of the 500 million subscriber milestone during its AGM 2025, and the latest figures now confirm that target has been met. Among its fastest-growing services is Jio AirFiber, the company’s fixed wireless access (FWA) offering powered by 5G. Jio has successfully met its goal of adding one million AirFiber users per month, bringing its total AirFiber user base to 9.5 million, the largest of any telecom operator globally in the 5G FWA category.