Reliance Jio witnessed churn of 22 million heavy voice subscribers and its ARPUs have not improved despite tariff hikes as most of the subscribers are on the 84-day plan, analyst firm SBI Caps Securities has said, adding that net subscriber ads were muted due to churn of heavy voice users.

Jio's gross subscriber additions continue to be driven by Jio phones. The churn of 22 mn heavy voice subscribers may have led to some adverse revenue impact this quarter.

Contribution from Jio phone continues to trend upwards, as such ARPU improvement was not seen much in this quarter. The improvement on account of December tariff hikes will be meaningfully visible from Q1FY21, SBI Caps Securities said.

Jio's Q3FY20 revenue was up 6 per cent QoQ, net subscriber ads were muted due to churn of heavy voice users because of IUC tariffs and the Key focus area for Jio seems to be driving FTTH and enterprise markets. The ARPU improvement seen early FY21 onwards and no respite to incumbents on AGR issue may drive accelerated market share gains for Jio in the near to medium term, it said.

Jio reported revenue growth of 6 per cent QoQ and EBITDA growth of 8 per cent QoQ. One of the key highlights of the quarter was that Jio lost 22 mn heavy usage smartphone subscribers which resulted in flat ARPUs despite two tariff hikes taken in the quarter.