Jio’s Stock Market Listing Could Lead to Higher Mobile Internet Prices in India
Amul Info ·
Indian telecom giant Jio Platforms is preparing for a $3.2 billion initial public offering (IPO). The company has around 553 million subscribers and holds a major share of India’s mobile internet market. Analysts suggest that increased pressure to deliver stronger financial results after the…
Jio Platforms, the telecommunications arm of India’s Reliance Industries conglomerate, is preparing to list its shares on the stock market. The initial public offering (IPO) is expected to be worth $3.2 billion, making it the largest IPO in India’s history. According to the BBC , within hours of subscriptions opening on 21 October, investor demand had exceeded the number of shares on offer.
Owned by Mukesh Ambani, Asia’s richest person, Jio entered the market in 2016 with exceptionally low tariffs. As a result, the number of telecommunications operators in India fell from 17 to three. At the time, the company faced criticism for engaging in a price war with its competitors.
More recently, Elon Musk described Mukesh Ambani as the “real boss of India” and alleged that Jio was trying to prevent Starlink from entering the Indian market. Reliance rejected the allegations and said it supported market competition.
By 2026, Jio had approximately 553 million subscribers. The company accounts for around 50% of India’s wireless broadband market and more than 40% of its fixed broadband market. It also carries 60% of the country’s mobile internet traffic.
Data consumption per subscriber is also increasing. In 2024, users consumed an average of 28.7 gigabytes of data per month. By 2026, the figure had risen to 42.3 gigabytes.
Experts believe the stock market listing could affect the company’s pricing strategy. As part of the IPO, existing owners plan to reduce their stakes by approximately 3%. According to Niti Shah, one of the founders of KamayaKya Wealth Management, the period of relying on low prices to gain market share is gradually coming to an end. Once listed, the company will also have to report its financial performance to minority shareholders.
According to an analysis by Motilal Oswal, Jio’s future growth will depend on increasing average revenue per user. Expanding 5G services, raising tariffs and developing wireless broadband services are identified as key ways to achieve this.
Analysts suggest that a change in Jio’s pricing policy could benefit its competitors, particularly Vodafone Idea. A reduction in price pressure could allow other operators to strengthen their market positions. However, further price increases could also prompt some subscribers to switch to operators offering cheaper plans.
The offering will be Reliance Industries’ first share sale in more than 20 years. Over the past year, the company’s share price has fallen by approximately 20%. Nevertheless, according to estimates by WealthMills Securities, Reliance has delivered an average annual return of around 30% to investors over the past 30 years.