Jio's 5G price war puts Bharti Airtel on the back foot

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Jio's 5G price war puts Bharti Airtel on the back foot

BENGALURU Reuters - The launch of cheaper postpaid plans with unlimited 5 G by Reliance's Jio has put Bharti Airtel on the back foot in the Indian market and could delay recovery in its key profit metric, JP Morgan analysts said on Thursday.

We were surprised to see Bharti turn defensive with counter-plans, JP Morgan analysts said in a client note, "Unlimited 5 G data consumption would also delay any kind of 5 G monetization, pressure the expansion of average revenue per user ARPU and delay 4 G prepaid tariff increases.

Analysts kept their underweight rating on Bharti Airtel, saying that ARPU expansion for Bharti was at risk and could even reduce over 2024 -- 25 as 5 G price wars take place.

Jio and Bharti Airtel have been rolling out 5 G services across the country.