Tariff hikes, market share gains to shape India’s telecom outlook: Arun Kejriwal

Jio Platforms' record-breaking initial public offering (IPO) subscription reflects investor confidence in India's telecom sector, according to Arun Kejriwal, market expert. He believes the company's technology investments, expanding subscriber base and market position provide a foundation for long-term growth, even as the telecom industry remains largely a two-player market.

Kejriwal said the focus should now shift beyond the IPO subscription numbers to Jio Platforms' execution over the coming years. He expects the company's market share gains, technology upgrades and steady tariff increases to support its future performance.

Calling the IPO a landmark event, Kejriwal said, "I believe it's an epic moment today."

Kejriwal said Jio Platforms has built a strong telecom business in just a decade, with a subscriber base that has already surpassed the incumbent operator. According to him, the company has combined modern network infrastructure with efficient capital deployment, allowing it to scale at competitive costs.

He said Jio continues to gain market share while investing in next-generation technologies. "You have somebody who's gaining market share, who's brought to you 5G technology, and who's talking of 6G technology," he said, adding that the company's technology roadmap could support future expansion.

Comparing Jio Platforms with Bharti Airtel, Kejriwal noted that the valuation gap narrows after considering the grey market premium, suggesting the telecom sector could witness close competition over the next few years.

Kejriwal said he had subscribed to the IPO both as a Reliance shareholder and under the high-net worth individual (HNI) category. However, he acknowledged that the strong subscription levels could reduce allotment chances.

Kejriwal expects India's telecom industry to remain largely a duopoly, with limited competition from a third player. He believes this market structure should support stable pricing while government oversight is likely to prevent excessive tariff increases.

He said government support for competition would ensure that price hike is no more than 15% over this year. He added that telecom remains an essential service with significant growth potential as data consumption continues to rise across the country.

For the full interview, watch the accompanying video

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Disclosure: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.