Leveraging Unlicensed Band Radio (UBR) and Fixed Wireless Access (FWA), Jio adds over a million broadband users monthly, while rising ARPU and 5G usage drive margin expansion.
UBR and FWA Fuel Jio’s Home Broadband Growth
Reliance Jio is witnessing rapid growth in its home broadband segment, adding over 1 million new users each month. This momentum is being driven by the deployment of Unlicensed Band Radio (UBR), which uses unlicensed spectrum to deliver Fixed Wireless Access (FWA) services.
- UBR allows Jio to deploy broadband without laying fiber, especially in underserved areas.
- FWA offers plug-and-play internet access, ideal for semi-urban and rural users.
- Jio’s low-cost rollout strategy through UBR is cost-efficient and scalable, giving it a competitive edge.
This has significantly contributed to broadband penetration across India, aligning with Jio’s goal of creating a “Digital India.”
5G User Base Hits 234 Million
Jio continues to dominate India’s 5G market, reporting a 5G user base of 234 million at the end of Q2 FY26—the highest among Indian telecom operators.
- 5G services are currently bundled as add-ons with 2GB/day or higher data plans.
- As direct monetisation begins, Jio is likely to unlock stronger margins from premium users.
- The broader adoption of 5G also helps boost overall data consumption, indirectly impacting ARPU.
Jio’s strength in 5G, alongside its growing broadband footprint, signals a multi-pronged strategy to monetise connectivity across consumer segments.
Financial Performance and Margin Outlook
Reliance Jio posted robust financials for Q2 FY26, with strong YoY growth:
- Net profit: â‚ą7,379 crore, up from â‚ą6,539 crore YoY.
- Revenue from operations: Rose 14.6% YoY.
- ARPU reached â‚ą211.4, up from â‚ą195.1 last year.
However, analysts note that ARPU growth is plateauing without fresh tariff hikes.
- JP Morgan projects ARPU at â‚ą214 by March 2026, assuming no price increase.
- Jefferies anticipates three 10% tariff hikes by FY28 and projects ARPU to grow at 11% CAGR to â‚ą272.
Even without immediate hikes, Jio is benefiting from scale. Jefferies expects:
- EBITDA to grow at 21% CAGR (FY25–FY28).
- Margins to expand to 58% by FY28, driven by operating leverage and network monetisation.
No Tariff Hike—for Now
Despite increasing revenue and operational efficiencies, Jio has confirmed it will not raise tariffs in the short term.
- This aligns with its strategy to retain affordability, particularly as 5G adoption spreads.
- Instead of price increases, the telco is relying on volume growth and FWA expansion to boost margins.
This balanced approach helps Jio grow both subscriber base and ARPU steadily, without risking user churn.
