Reliance Jio isn't worried of 'short term revenue losses', as new tariffs affect rival companies
Earlier this week, Reliance Jio announced a new set of tariffs for all its users a day after rival Bharti Airtel offered a similar scheme for ‘select users’. The Mukesh Ambani-owned mobile service provider has rapidly become a top player in the mobile service market, thanks to the schemes it offers users.
In fact, as per an Economic Times report, Jio is even willing to price its services in such a way that even it means a short-term revenue loss, it will affect rival companies as well.
“Bank of America Merrill Lynch said Jio’s average revenue per user (ARPU) – a key performance metric – could “see a marginal sequential fall in the first quarter of FY19” but its new tariff offer underlines “its low-cost/high data positioning” to attract bulk of the new smartphone users. About 10 million smartphones are being sold in India each month, and we estimate Jio adds 6 million smartphone users monthly, indicating high market share, driven by its low-cost/high data positioning,” the report added.
Jio had on Tuesday revised its tariff plans, offering an extra 1.5 GB 4G data per day to prepaid customers recharging their data packs till June-end, in response to segmented pricing moves by market leader Bharti Airtel adding fuel to the country’s relentless telecom price wars.
“Jio also offers a Rs 100 discount on all recharges of Rs 300 and above and 20% on recharges below the Rs 300 price point, if the user recharges through the MyJio app and pays using PhonePe wallet..” the company said in a press release.
These are the new rates
a. 1.5GB/day data pack users - Rs 149, 349, 399, 449 will now get 3GB/day
b. 2GB/day data pack users - Rs 198, 398, 448, 498 will now get 3.5GB/day
c. 3GB/day data pack users - Rs 299 will now get 4.5GB/day
d. 4GB/day data pack users - Rs 509 will now get 5.5GB/day
e. 5GB/day data pack users - Rs 799 will now get 6.5GB/day
Interestingly, Airtel introduced its scheme in response to Jio's plan which offers 1.5 GB 4G per day for Rs 149 with a validity of 28 days. By offering 0.5 GB extra, Airtel is looking to stay alive in the intense data war which has been unleashed ever since Reliance Jio entered the market. Jio with its aggressive price points managed to bring the prices down, forcing others to adjust their rates.
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