Reliance Jio expands AirFiber for 5G monetisation ahead of 2025 IPO

Reliance Jio is accelerating its 5G-based fixed wireless access (FWA) business, Jio AirFiber, as part of its strategy to monetize 5G technology and prepare for a potential initial public offering (IPO) by 2025. The telecom giant plans to significantly boost customer acquisition for AirFiber over the next year, according to The Economic Times.

Jio aims to onboard one million AirFiber customers within just 30 days, leveraging growing data consumption and subscriber additions, to enhance its valuation ahead of the IPO. A report by brokerage firm CLSA highlights that these initiatives are expected to strengthen investor confidence and improve Jio’s market value.

To achieve these ambitious goals, Reliance Jio has expanded its distribution network and optimized the onboarding process, enabling it to connect over one million homes every month. By September 2024, the company had already reached 2.8 million AirFiber users and is projected to have added another 1.9 million broadband customers by the December quarter.

AirFiber’s high revenue potential

Jio’s AirFiber service is emerging as a major revenue driver, offering significantly higher returns compared to mobile services. The average revenue per user (ARPU) for AirFiber stands at approximately ₹650–700 per month, over three times the ₹195 ARPU recorded for mobile services in Q2FY25.

This high ARPU positions AirFiber as a cornerstone of Jio’s 5G monetization strategy. While the rollout of 5G services has seen some delays despite Jio’s $25 billion investment in infrastructure and spectrum, AirFiber’s expansion is expected to accelerate revenue generation.

Jio also raised the minimum plan price for its 5G mobile broadband services in July 2024, encouraging users to switch to higher-value plans. Analysts believe that the growing base of high-ARPU AirFiber users will help Jio monetize 5G services faster, with the impact of recent mobile tariff hikes likely to reflect in financial results by Q4FY25 and Q1FY26.

Faster 5G monetization is expected to significantly boost Jio’s ARPU and financial performance, making the company more attractive to investors ahead of its IPO. CLSA estimates that Jio’s operating income (Ebitda) will rise by 40% to ₹87,600 crore by FY27, driven by subscriber growth and higher ARPU. By then, Jio’s ARPU is expected to climb to ₹230, up from ₹195 in Q2FY25.

A record-breaking IPO in the making

Global valuation firm Sanford C. Bernstein estimates Jio Platforms Ltd (JPL)—encompassing Reliance’s telecom and digital ventures—at $98 billion. Based on this valuation, Jio’s IPO could become the largest in Indian history, potentially raising around ₹42,100 crore.

Under current regulations, companies valued at ₹1 trillion or more must sell at least a 5% stake during their IPO. For context, India’s largest IPO to date was Hyundai India’s ₹27,856 crore offering in 2023.

Reliance Industries, led by Mukesh Ambani, currently owns a 66.5% stake in JPL. The remaining 33.5% is held by strategic investors such as Meta and Google (17.7%) and private equity firms (16%). JPL raised ₹1.52 trillion from these investors in 2020.

Sanford C. Bernstein forecasts a 17% compound annual growth rate (CAGR) in revenue for Jio over the next three years, fueled by a 14% ARPU increase by FY26. The brokerage also predicts that Jio will capture 48% of the telecom industry’s revenue by FY26, solidifying its market dominance.

As Reliance Jio scales up its AirFiber business and drives 5G monetisation, it is setting the stage for a historic IPO. With ambitious growth plans and strategic measures to enhance ARPU, Jio is well-positioned to redefine the Indian telecom landscape and attract significant investor interest.

FAQs for Reliance Jio's AirFiber and 2025 IPO news

1. Why is Jio focusing on AirFiber?

Jio is leveraging AirFiber to drive 5G monetisation due to its significantly higher revenue potential. With an ARPU of ₹650–700, AirFiber generates more than three times the revenue of Jio’s mobile services, making it a crucial part of its growth strategy.

2. What are Jio’s targets for AirFiber growth?

Jio plans to onboard one million AirFiber customers within 30 days and connect over one million homes each month. The company already had 2.8 million users as of September 2024 and aims to add more customers aggressively.

3. How does AirFiber contribute to Jio’s IPO plans?

By expanding its AirFiber customer base and boosting ARPU, Jio aims to increase its valuation and attract investor interest ahead of its potential IPO by 2025.

4. When is Jio’s IPO expected?

Jio's IPO is anticipated by the end of 2025, though the exact date has not been officially announced.

5. How much could Jio’s IPO raise?

Based on a valuation of $98 billion by Sanford C. Bernstein, Jio's IPO could raise approximately ₹42,100 crore, potentially making it the largest IPO in Indian history.

6. Why is Jio’s IPO significant?

Jio’s IPO could be India’s largest ever, surpassing Hyundai India’s ₹27,856 crore IPO in 2023. It also offers investors a stake in one of the country’s most dominant telecom and digital businesses.

7. What is the expected revenue growth for Jio?

Sanford C. Bernstein forecasts a compound annual growth rate (CAGR) of 17% in revenue for Jio over the next three years, driven by ARPU growth and subscriber additions.

8. How does AirFiber compare to Jio’s mobile services in terms of revenue?

AirFiber’s ARPU of ₹650–700 is more than three times higher than Jio’s mobile ARPU of ₹195 as of Q2FY25, making it a critical revenue driver.

9. What steps is Jio taking to monetise 5G?

Jio has raised the minimum plan price for 5G mobile broadband services and is expanding AirFiber’s high-ARPU user base to accelerate 5G monetisation.

10. Who are the key stakeholders in Jio Platforms Ltd (JPL)?

Reliance Industries owns 66.5% of JPL, while the remaining 33.5% is held by strategic investors, including Meta, Google, and global private equity firms.

11. What is Jio’s market share target?

Analysts project that Jio’s market share will reach 48% of the telecom industry’s revenue by FY26, further solidifying its leadership in the sector.

12. How much has Jio invested in 5G?

Reliance Jio has invested $25 billion in 5G spectrum and infrastructure to establish itself as a leader in the next-generation telecom market.

13. How does AirFiber support 5G rollout?

AirFiber serves as a key component of Jio’s 5G strategy, providing high-speed internet services and boosting the overall monetisation of 5G investments.

14. What impact will Jio’s IPO have on India’s stock market?

Given its potential size and significance, Jio’s IPO is expected to attract global investor attention, boost market sentiment, and possibly set new benchmarks for Indian IPOs.