Mukesh Ambani's US$30 billion gamble is paying off with early profits* and 12 million joining every month. He built an extraordinary network to 96% of Indians. It's all 4G and designed well enough a Verizon senior executive is envious. He expects to cover 99% of the 1,324,000,000 Indians within a year. Speeds in government tests average 20 megabits and have been rising.
The financials show a profit already, despite revenue per user of less than US$2/month. If one day passes are excluded, the ARPU remains in low single digits. The enormous number of users is essential for profitability at a low price. So is extreme efficiency. It's a 4G only network, state of the art and pure IP for minimal complexity. Lee Hicks at Verizon leads One Verizon, which is building a simplified network. He estimates his cost savings at 50% in the first year. Jio shows it works.
Next step: 50 million fibre to the home connections, not just homes passed. That's three times as many as the United States. The massive fibre backbone keeps that cost low.