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Jio sees Ebitda margin uptick in Q3 from IUC charge on user

Jio added 103 million subscribers in the last 12 months.

ETMarkets.com|
Oct 18, 2019, 09.30 PM IST
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“In October-December quarter, you will see a benefit on margins,” said Anshuman Thakur, strategy head at Jio.
NEW DELHI: Reliance Jio estimates an uptick in its EBIDTA margin for the October-December quarter, on the back of charging customers 6 paise per minute to recover interconnect user charges (IUC).

“In October-December quarter, you will see a benefit on margins,” said Anshuman Thakur, strategy head at Jio.

Jio transferred the IUC costs to its customers this month saying that although calls to and from its network will be free, those who want to make a call to Airtel or Vodafone Idea will have to pay an additional amount. This move came on the back of sector regulator’s direction of fresh consultation paper to decide on implemention of the IUC regime.

Thakur was confident that customers won’t migrate because of the new rates.

“How much will this 6 paise impact? The average utilisation of offnet for customers is 200 mins and that is Rs 12. It is not impacting customers in a very big way. We just wanted customers to know that we didn’t increase it but it is because of Trai that we are doing this and we will roll it back once TRAI decides,” said the strategy head on Friday.

The telco which saw average revenue per user (ARPU) fall again to Rs 120 from Rs 122 in September quarter remained unperturbed, saying getting customers on the network was more important.

“That's okay. More customers are coming. At this point, we are much more focused on creating the digital ecosystem, which means getting more and more customer onto the network and ensuring that they consume more data. On a base of 355 million subscribers, the average data consumption has gone up from 11.4 to 11.7 GB per quarter,” said Thakur.

Jio added 103 million subscribers in the last 12 months. The telco made its debut September 2016.

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