Reliance Jio may be available at nominal cost after March 31, say analysts
Posted on: 19/Jan/2017 1:39:09 PM
Reliance Jio subscribers may continue to enjoy data services at a nominal rate, combined with free voice calls, for another three months after March 31.
According to sources, The company is working out a new tariff plan which will be valid till June 30. Unlike the earlier free offers that incumbent telcos have termed predatory, the latest introductory offer will charge a fee of about Rs 100 for data, while voice will be free. We have to start making revenue.
Jio is still not the primary phone connection and the telecom operator runs the risk of losing them if it increases its rates significantly. Instead, a nominal charge will help Jio test its subscribers for stickiness, and will also get an indication of a suitable price point when it finally starts charging at market rates.
Say analysts, We expect many will go back to using their primary number if the (free) offer is withdrawn, and Jio could well lose over half its subscribers if it starts charging more without fixing the call drop problem. Offering a nominal price for data - lower than what it had announced in September -with voice free may prevent a sharp drop in customers, and the operator can still start its payment cycles. But it has to come up with cheaper tariff because other incumbents have already launched reduced packs. This price war is a burden on the company (telcos) and the government loses on licence fee as well.
