Ahead of what is set to be India’s largest initial public offering, Jio Platforms Managing Director Akash Ambani said that the company plans to drive revenue per customer by selling more services rather than lifting tariffs. “We always have the ability to take up prices,” Ambani said at a press conference in Mumbai, but added the company would rather offer more services and charge for them than rely on price per gigabyte as its main lever. Ambani said Jio charges about Rs 4.9 per gigabyte, below the industry average of Rs 7.5, with customers using 43.7 GB a month.
Emphasis on improving earnings and profits
Akash Ambani said about 30 per cent of Jio’s revenue converts into free cash flow. The company will invest this amount in developing new features for customers and expanding the business. Jio‘s EBITDA margin has increased from 50 per cent to 53 per cent over the past three years. The company expects further improvements through improved technology and new digital products. Mobile services, home broadband, enterprise, and digital services are expected to drive future revenue growth.
Preparations to provide broadband to 10 crore homes
Jio’s UBR technology has expanded the potential home broadband market from 40 million to 100 million homes. According to Aakash, this technology can provide wireless broadband connections within 48 hours of a customer’s request. Jio also plans to partner with local telecom companies to expand overseas. This will allow the company to expand its technology to other countries and explore new opportunities outside the Indian digital market.
Outlines roadmap to tap $1.4 trillion digital opportunity by FY31
Ambani also outlined a strategic roadmap to target India’s $1.4 trillion digital economy by FY31. He also stressed that Jio’s first mission is to democratise technology to benefit Indians. The framework details the company’s capabilities across technology, customer reach, and infrastructure, along with its core expansion vectors.
Akash Ambani said Jio is the only provider globally with a fully integrated, end-to-end technology stack and has filed 7,220 patents across its technology stack.
He said the company has built an extensive 5G network in India, and it has the largest 5G subscriber base outside China.
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