India’s ultra-cheap internet is about to get more expensive

Jio, India’s biggest telecoms operator, listed on 28 October at a valuation of 10.3trn rupees ($108bn), the largest ever in local-currency terms and second-biggest in dollars; shares closed 27% above the listing price on day one. Reported facts: revenue grew about 15% last financial year; India has 1.3bn wireless connections (92 per 100 people); the industry has shrunk from about a dozen firms in 2016 to four, with Jio at 39% share and Bharti Airtel 38%; Jio charges about 4.9 rupees per GB, 2% of US prices. Motilal Oswal predicts a 15% price rise by December. The Economist argues the valuation implies higher prices for users, but notes counterweights: after July 2024 tariff rises Jio lost 16m subscribers in four months. It also flags Jio’s push into fixed-line, streaming, “affordable intelligence” AI services and a Starlink-like satellite offering held up by regulation.