NEW DELHI: Reliance Jio stands to gain the most in the latest round of price hikes by service providers and its plans indicate that the company is moving away from deep discounting, which bodes well for the sector, according to analysts.The Mukesh Ambani-owned telco on Wednesday unveiled revised tariffs, which were as much as 40% costlier. The analysts expect that it would push up its earnings before interest, tax, depreciation and amortisation (EBITDA) by 33% or $1.5 billion for FY 2020-21, propelled by a 28-29% increase in the average revenue per user (ARPU) to Rs 157.“Jio has also introduced a new 56-day category — offering more voice calling benefits (IUC minutes) vs. the 28-day category — that comes at a higher cost per GB pricing for the consumer, which suggests that Jio no longer intends to incentivise deep discounting,” SBICap Securities said in a note to its clients.They said that the reduction in premium between older telcos and Jio from 35% to 25% in the 28-days-1.5GB/ day plan category and from 15% to 8% in the 84-days-1.5GB/day plan category would come as a respite for the rivals as it may help reduce churn. A lot will, however, depend on the Airtel and Vodafone Idea’s capex plans.The firm estimated Jio’s customer additions to continue at 9 million a month till March 2020, and 4 million a month in FY 2020-21, adding that the carrier is expected to get the most benefit from the tariff hike.Reliance Jio’s 40% higher tariffs will come into effect from Friday, but some of its plans are almost 25% cheaper than those of Bharti Airtel’s and Vodafone Idea’s. The older telcos have raised tariffs by as much as 50% in some cases from Tuesday.“Jio to gain most from this sectoral uplift,” SBICap said.Analysts at CLSA expect a further upside in Jio’s profits as they await an increase in JioPhone tariffs – about 20% of its customer base comes from JioPhone – and said users may prefer 28-day plans over the longer duration plans which may lead to higher ARPU, besides falling interconnect costs owing to the carrier charging 6 paise a minute for off-net calls. “(This) could potentially raise Jio’s FY21 revenue and ARPU by 6% and EBITDA by 11%… We continue to assume another 10% tariff hike in April 2021,” the analysts said.“Jio is likely to see the highest increase in ARPU/revenue from the recent tariff hikes. We estimate about Rs 37 incremental ARPU for Jio vs Rs 24-27 for Vodafone Idea or Bharti Airtel,” said a Goldman Sachs analyst.Morgan Stanley analysts, however, flagged that recommendations from the Telecom Regulatory Authority of India on floor tariffs and interconnect usage charge rate, along with the review petition by the incumbents against the verdict on AGR (adjusted gross revenue) dues, may have an impact on the industry, and therefore must be watched out.