HOME > BUSINESS > Bharti Airtel likely to counter Reliance Jio’s 303 plan shortly

Bharti Airtel likely to counter Reliance Jio’s 303 plan shortly


Bharti Airtel, India’s largest telecom company, is likely to match Reliance Jio’s one-year promotional 4G tariff of Rs 303 per month, according to industry and analyst sources.

“They have been maintaining that they will match once Jio starts charging for customers,” said a stock analyst based in Mumbai. “That time has come. If they don’t match it, they’re going to be priced out.”

At present, the cheapest tariff from Airtel is 6 GB for Rs 147, but that is given only to its ‘at risk’ customers.

The company identifies customers at risk by checking if they are heavy data users and whether they use a 4G-enabled phone or any other high-end model. For example, people who spend only Rs 150 per month and use no data do not make up key customers.

Speaking to investors last month, the company’s CEO Gopal Vittal said he was aware that a large chunk of their premium customers are currently using Reliance Jio’s services via additional SIM cards even as they remain on Airtel’s network.

“The good news is that these customers are still on our network, we know who they are. And I think once pricing commences, we will see how they will make choices of where the traffic has got to go. We have been through this game in the past,” he said, promising that his company will compete with matching tariff plans once the new entrant reveals its hands.

Jio chairman Mukesh Ambani today announced a new tariff plan that sells 1 GB of data per day and unlimited calls for Rs 303 per month.

Vittal is likely to respond by matching the tariff on the 4G data side.

It is estimated that the capacity utilization of the 4G networks of RJio’s rivals is the single digits. This could dip further as they continue to add new base stations. The Ambani firm is reported to be carrying 94% of India’s total wireless data traffic.

As such, the incremental cost of selling data is almost zero for the incumbent players.

Therefore, say most industry watchers, these players are likely to borrow a leaf out of Ambani’s playbook and spoil users with ultra-low 4G prices till March 2018. In fact, Vittal hinted at such plans even as he spoke last month.

“Our focus is how do we continue to hold on to our customer base, how do we use the utilization of our network, which is sitting today at a low level on the data side in order to drive consumption and to remain competitive in the marketplace,” he told investors.

Although Jio may look like it is giving 30 GB for Rs 303 per month, the actual usage of data will be close to around 13 or 14 GB per month per subscriber. This is because data keeps lapsing or expiring every day, and most people do not use their exact 1 GB allowance every day.

At 13 GB per month, the actual cost comes to about Rs 23 per GB. Both Bharti and Idea Cellular are already providing 4G data at Rs 25 per GB under their promotional schemes.

“They have two options: One is to provide a differentiated scheme, say 15 GB for Rs 300, while the second option is to simply offer 1 GB per day for Rs 300 per month,” said a telecom industry veteran who now serves a consultant to operators.

Though Jio also provides free calls with its data, voice is not the key driver for people straying from incumbent operators, according to this person. Typically, voice costs only around Rs 200 per month, while data costs can run into thousands of rupees for those who consume video.

“The lure is the data. That is what they need to address on a priority. Once they roll-out their own VoLTE services, they can add unlimited calling to the mix,” he added.

For now though, none of the rival operators have commented on Jio’s move.

They have already taken the company to the courts over its previous promotional offer, and may explore legally challenging the scheme announced by Ambani today.

“The matter is already in TD-SAT and the TRAI is also trying to get a legal definition of what constitutes predatory pricing and what doesn’t. That is great. But what they can’t afford to do is to wait for the judgments to be delivered,” the consultant added.

While industry sources and analysts were more certain about Bharti responding to the new scheme, they were less certain of an equally aggressive response coming from Idea Cellular or Vodafone. The two companies are engaged in talks to merge their operations in India to better compete with Jio.

Follow ULTRA.news
SBI waives processing fee on car loans till Dec State Bank of India, India's largest commercial bank, has waived processing charges on car loans till the end of the year, while halving the charge on some personal loans till Sep 30.The bank did not specify the new rates.It already has zero processing fees when someone t...
Reliance Jio starts turning off free services, urges users to recharge Reliance Jio, the telecom firm that has caught the country by storm, has started turning off the connections of those subscribers who have not recharged their mobile phones since the beginning of April.In April, it had introduced the Summer Surprise offer, and gave around fou...
Yes Bank launches impulse buying app ‘Tap To Shop’ Trying to differentiate itself from regular ecommerce websites and apps, Yes Bank has launched an impulse buying app known as Tap To Shop.Unlike regular online shopping apps, Tap To Shop will be focused exclusively on delivering deals that are not available at most times. The...
India achieves only 14% of rooftop solar power target Even as India more or less sticks to the target on adding large solar farms under its ambitious Solar Mission project, the other leg of the plan -- rooftop solar -- remains woefully behind target.Under the solar mission, India is supposed to have put in 5,000 megawatt of sola...
Idea Cellular likely to expand 4G offers this year Idea Cellular, India's third biggest telecom player by revenue, is likely to see its 4G data capacity rise to three times the current level over the next nine months, which is likely to push the price of data down further.This could impact Reliance Jio's ability to stop its d...
Vodafone slashes 4G offer prices after Airtel, Idea reveal explosion of data Vodafone India renewed efforts to promote its cut-price voice and data offerings in recent days as the latest quarterly numbers from rivals Idea Cellular and Bharti Airtel suggested they had given out bigger discounts in the April-June period than anyone had expected.Earlier ...
Bharti Airtel will launch VoLTE next year Bharti Airtel is still testing its 4G voice or Voice over LTE service and a pan-India launch will take place only by January-March of 2018.Gopal Vittal"VoLTE is a very complex technology," CEO Gopal Vittal said. "There is a lot of optimization. It has to be tested device...
No plans to launch JioPhone rival – Bharti Airtel Bharti Airtel, India's largest telecom provider by revenue, said it has no intention of launching a rival phone similar to the super-cheap semi-smartphone launched by rival Reliance Jio.Asked if the company needed to come out with a similar, affordable handset to compete with...
Telecom license fees fall 23% as Reliance Jio hits call, data prices The license fees paid by telecom operators in India to the central government fell by 23% to 2,663 crore in the three months ended March compared to the previous three months, the government said.Compared to nine months earlier, the fall was 33%.Telecom access providers, ...
HALVED: Bharti Airtel’s data price crashes to Rs 60/GB due to Reliance Jio Bharti Airtel was forced to slash its data price by half to about Rs 60 per GB in the April to June period of 2017, the latest numbers revealed.In contrast, Bharti Airtel was charging around Rs 125 per GB in the three months from January to March of this year. A year ago, it ...
Bharti Airtel profit down 75%, says market remains “turbulent” Bharti Airtel Limited reported a drop of 14% in its revenue for the first quarter, at Rs 21,958 crore. Adjusted for sale of its units, the drop was 11%, it said.Net profit fell 75% to 367 crore rupees for the first quarter. Operating profit was down 18%.India revenues for...
Bharti Airtel Q1 revenue up 10%, profit down 12% Tower provider Bharti Infratel reported a 10% growth in its revenue and profit for the first quarter.The Consolidated revenues for the quarter, at Rs. 3,524 Crore, was up by 10% over the corresponding period last year.Consolidated profit from operations improved to Rs 1,...
Is the Reliance Jio’s JioPhone really free? The latest entrant to India's telecom market, Reliance Jio, has announced an unprecedented offer -- a 4G enabled phone with support for apps and videocalling for free.According to Mukesh Ambani, customers do not have to pay anything for the phone as the cost of the phone will...
JIOPHONE: Reliance Jio to give unlimited data at Rs 153 / month Reliance Jio chairman Mukesh Ambani announced the JioPhone, which aims to bring smartphone features to the candybar form factor.The phone will be given to anyone if they deposit Rs 1500 with the company. The user will get the Rs 1500 back when the device is returned after 36 ...
Reliance Jio offers phone for ‘free’, unlimited voice, data at Rs 153 Reliance Jio chairman Mukesh Ambani announced the JioPhone, which aims to bring smartphone features to the candybar form factor.The phone will be given to anyone if they deposit Rs 1500 with the company. The user will get the Rs 1500 back when the device is returned after 36 ...
WATCH HERE: Mukesh Ambani speech on Reliance Jio at AGM today Mukesh Ambani, chairman of Reliance Jio will make a 'significant announcement' about the 4G wireless service provider's offerings at 11 AM on Friday while delivering his annual speech at its parent's annual general meeting.A live webcast of Mukesh Ambani's speech at the AGM, a...
BSNL halves 2Mbps unlimited plan to Rs 599 from 1,199 Faced with a slowdown due to the emergence of the pan-India competitor Reliance Jio, state-owned Bharat Sanchar Nigam Ltd has halved the price of its unlimited 2 Mbps DSL broadband plan to 599 per month.BSNL NEW UNLIMITED BROADBAND PLANThe player was earlier offering unl...
Spectranet overtakes Airtel Broadband on Netflix speed ranking for India Netflix, the world's biggest distributor of movies, ranked Mumbai-based 7 Star cable network and Spectranet, which offers fiber broadband in several cities, as the fastest networks for prime time usage.The average speed available to Netflix was 2.77 Mbps on 7 Star cable and 2...
With tariff change, Idea Cellular 4G data now cheaper than Reliance Jio Idea 4G tariff planWith Reliance Jio raising the price of its 1GB-per-day pack from Rs 309 to Rs 399, Idea Cellular has managed to beat the new operator in this segment, though not by much.Idea Cellular offers 1GB/day for 84 days at Rs 397, making it cheaper by 2 rupees....
Reliance Jio users should recharge with new plans by Friday for continued service Most Reliance Jio 4G users have to recharge their phones by Friday, July 14 to continue uninterrupted service.This because the current offer -- Summer Surprise or Dhan Dhana Dhan -- came into effect on April 16, and will complete 90 days by Friday.The Summer Surprise pla...
RELIANCE JIO unveils NEW PLANS valid from today Reliance Jio's new tariff plansIndia's biggest wireless data provider Reliance Jio unveiled a new set of plans as it continues to migrate its customers towards paid plans.The key difference between the new plans and the previous Dhan Dhana Dhan offer is that the new plan...
LAST CHANCE: Reliance Jio’s Dhan Dhana Dhan offer ends today Today marks the last day of telecom operator Reliance Jio's Dhan Dhana Dhan promotional offer that triples the validity of 4G recharges on its platform.The offer was unveiled as a promotional scheme on April 11, and according to the law, promotional schemes can be valid only ...
RCom launches VPN services over 4G Reliance Communications launched a virtual private network service over its 4G service for the use of businesses.VPNs use software to create a virtual tunnel between two or more end points on the Internet.Since these are not a real private networks -- which would require ...
Reliance Jio to offer 5 GB/day for Rs 999 per month Users of the JioFi, the personal hotspot device from Reliance Jio, will be able to get a new plan that takes the free data offered per day to 5 GB.At present, the highest amount of free data that any user on the 4G service can get is 2 GB, for a payment of around Rs 500 for 2...
SpiceJet enters offline retail, offers free tickets to Goa, Bangkok Airline SpiceJet said it has opened its first physical store under its new ‘SpiceStyle’ retail brand at Galleria Mall in Gurgaon, near Delhi.The launch of its first physical store marks SpiceStyle’s entry into the offline segment besides its ecommerce portal and a brand sto...