India has witnessed a substantial rise in 5G adoption, with the user base expanding rapidly despite increased mobile tariffs. Reliance Jio and Airtel's aggressive 5G rollouts have played an important role in the expansion, by making India the fastest nation in the world to deploy 5G services.
The surge in 5G users across India
The 5G users who are based in India have seen remarkable growth, which has skyrocketed from just 10 million (1 crore) users in 2022 to 180 million (18 crores) in 2023.
As per the recent reports, 5G services will now cover 98 per cent of India’s districts. Although further large-scale rollouts are anticipated, the pace of 5G expansion has been unprecedented, driven largely by the efforts of major telecom players like Jio and Airtel.
Jio's 5G user base and market supremacy
The Telecom Regulatory Authority of India (TRAI) has highlighted Jio's continuous market leadership in its latest report.
It was further reported that Reliance Jio's 5G user count has also increased from 130 million to over 147 million users, even as mobile tariffs witnessed a rise in July. This growth has further helped Jio to maintain its stronghold in the Indian telecom market.
Impact of tariff hikes on user base
Despite the increase in mobile tariffs, Jio’s 5G user base has not been significantly affected. However, in the last quarter, the telecom giant further witnessed a loss of around 10 million (1 crore) users, which is primarily due to customers switching Jio to a secondary SIM option.
Nevertheless, this reduction in users did not heavily impact the company's earnings.
Jio's rising ARPU and profit
Jio’s strategic focus on premium services and its 5G rollout has led to a rise in its Average Revenue Per User (ARPU), which increased from Rs. 181.7 to Rs. 195.1. As a result, the telecom company’s net profit rose to Rs. 6,536 crores, which has been reflecting in improved financial performance even in a competitive market.
Focus on quality 5G services and more
Jio remains committed to delivering high-quality 5G services to its customers. The company has acknowledged the temporary dip in user numbers due to tariff increases but emphasized that its priority is providing a robust 5G network. Jio is also working on expanding Fixed Wireless Access (FWA) services to better connect homes, positioning itself as a leader in India's 5G landscape.
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