First, the good news: Airtel has widened its lead over rival Reliance Jio Infocomm Ltd in terms of ARPU or average revenue per user. Airtel's ARPU rose 10.6% sequentially to ₹233 in Q2 versus a 7% increase in Jio's ARPU to ₹195. This has expanded the gap between the ARPUs of Airtel and Jio to ₹38 in Q2 from ₹29 in Q1.
Interestingly, Airtel and Jio took tariff hikes in July, with the former raising tariffs by 10-21%, while the latter by 12-25%, somewhat higher. So, what explains Airtel's higher ARPU growth? It could be attributed to several factors.
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