- 3QFY20 was the first quarter of results after company’s decision to charge for off-net call and to further hike tariffs in Dec-19. Full impact of price hike will be visible in 1QFY21.
- Gross subscriber addition was strong at 37mn but net subscriber was down at 14.8mn, which is nearly half of usual run-rate, due to off-net call charges.
- On a like for like basis, Average Revenue Per User (ARPU) increased 0.7% QoQ to Rs.128. While Dec-19 tariff hikes will take one to two quarters to fully reflect in ARPU, Jio's 3QFY20 ARPU was a bit
weaker since the company started charging customers for off-net calls from Oct-19.
- Jio highlighted that by Dec-19 end it was the net recipient of Interconnect Usage Charges (IUC) due to the change in traffic mix post its tariff changes. It would affect VIL as it was the biggest beneficiary
of net IUC receipts.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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