From ₹228 a GB to ₹7.5: How Mukesh Ambani’s Jio rewired India’s internet and is now seeking a ₹10 lakh crore valuation

A decade ago, a gigabyte of mobile data cost ₹228. Today, the same gigabyte costs about ₹7.5. In that dramatic reset lies the story of Jio’s rise and the investment case behind billionaire Mukesh Ambani seeking ₹10 lakh crore valuation for Reliance’s telecom and digital play’s IPO.

Jio did more than cut prices. It changed how India accesses the internet, accelerated the shift from voice to data and created an enormous digital distribution network that now carries about 60% of the country’s wireless data traffic.

The company is now asking investors to value it not merely as a telecom operator, but as a broader technology platform spanning 5G, fixed broadband, cloud, entertainment, enterprise services and artificial intelligence.


When Jio entered the market, industry download speeds were around 2.5 megabits per second. By FY26, speeds had risen to more than 68 Mbps, according to a Systematix report. At the same time, the cost of data fell from ₹228 per GB to ₹7.5 per GB. Average monthly data consumption rose from less than 0.2 GB per customer to 26.7 GB.

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Jio’s own average customer data consumption reached 43.7 GB a month in the first quarter of FY27, showing how lower prices and faster networks have expanded usage.

The result is a scale that few companies in India can match. Reliance Jio Infocomm had 533.3 million customers as of June 2026, while Jio’s wireless broadband network covered more than 99% of India’s population. Its network carried about 60% of the country’s wireless data traffic during FY26.

That scale is the foundation of Jio Platforms’ ₹30,213 crore IPO. The issue, which opens on Oct. 21 and closes on Oct. 23, is entirely a fresh issue with no offer-for-sale component. At the upper price band of ₹1,119, Jio Platforms will have an implied market capitalisation of about ₹10.3 lakh crore.

Most of the proceeds, up to ₹27,500 crore, will be used to repay or prepay borrowings at Reliance Jio Infocomm. The offering is therefore not just a monetisation event for existing shareholders. It is also designed to strengthen the operating company’s balance sheet and reduce financing costs.

Jio’s financial performance reflects the benefits of scale and operating leverage. Revenue rose to ₹1,46,885.8 crore in fiscal 2026 from ₹1,28,218.4 crore a year earlier, while EBITDA increased 16.4% to ₹73,382.1 crore. Its EBITDA margin improved to 50% from 49.2%, according to Ventura Securities. Cash flow from operations rose to ₹77,556.3 crore.

But the next phase of the Jio story will depend on monetisation, not just subscriber additions.

Average revenue per user (ARPU) rose from ₹181.7 in FY24 to ₹214 in FY26 and ₹215.6 in June 2026 quarter. Higher tariffs, rising data consumption and the migration of users from 2G to 4G and 5G are expected to support further growth.

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More than 260 million Indians still use 2G networks, according to market reports. Their migration to smartphones and high-speed data creates a large potential market for Jio’s mobility business.

The company is also expanding beyond mobile connectivity. Its fixed broadband customer base stood at 28.6 million in June, including 14 million JioAirFiber subscribers. Jio is using fibre and fixed wireless access to reach households and businesses where last-mile fibre deployment is difficult.

The enterprise opportunity is another part of the IPO pitch. Jio offers cloud infrastructure, internet-of-things services, managed Wi-Fi, private 5G, cybersecurity, communications platforms and enterprise AI. The company is also seeking to monetise its technology platforms through international partnerships and managed services.

That is where Jio’s technology credentials become central to its valuation. The company and its subsidiaries have filed 7,220 patent applications across 4G, 5G, 6G, cloud native network architecture and AI-driven network automation. Around 12,477 employees, or about 45% of its full-time workforce, were engaged in digital products and technology development as of June 2026.

Jio’s proprietary AI engine, JioBrain, is being used for network optimisation, capacity allocation and predictive fault monitoring. The company is positioning its connectivity network as the distribution layer for an AI-native digital services business.

Its 5G opportunity is already significant. Jio had 284.9 million 5G customers as of the first quarter of fiscal 2027 and held India’s largest spectrum bank, with 26,800.8 MHz and an average remaining life of 16 years. Its spectrum portfolio spans low-band, mid-band and millimetre-wave frequencies.

The investment case, however, comes with risks. Jio will need to continue investing in networks, spectrum, artificial intelligence and digital infrastructure. Rapid technological change could make existing platforms obsolete, while satellite broadband could introduce new competition.

The company is also heavily dependent on Reliance Jio Infocomm for its revenue and profits, as well as on Reliance Retail for the distribution of prepaid connectivity services. Spectrum renewals, network disruptions, cybersecurity threats and regulatory changes remain important monitorables.

At the upper price band, Jio Platforms is valued at around 33 times FY26 earnings, according to Systematix. The brokerage nevertheless recommended subscribing, pointing to Jio’s market leadership, profitability, cash generation and multiple growth drivers.

The valuation assumes that Jio can convert its connectivity advantage into higher value services. Lower data prices created the network. Rising usage created the audience. The IPO now tests whether 5G, broadband, cloud and AI can turn that audience into a much larger earnings stream.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)