HOME > BUSINESS > RIL stock up as Reliance Jio proves doubters wrong, avoids an April dip in subscribers

RIL stock up as Reliance Jio proves doubters wrong, avoids an April dip in subscribers

Shares of Reliance Industries rose 3.5% today — an extraordinary move for such a large company — after it emerged that not only did the company not lose subscribers when it made the transition from free to paid services in April, it actually added a few million.

The result was that the new entrant had as many paying high speed data (3G+4G) customers at the end of its first month of commercial operations as Bharti Airtel, Vodafone and Idea had taken together.

NO CLIFF EFFECT

The Reliance Industries subsidiary had 108.7 mln subscribers at the end of its ‘free period’ (March 31). This was expected drastically come down when it made the transition from free to paid services in April.

CyberMedia Research, for example, predicted in March that the company would lose 55-60% of its connections when it went ‘pay’ in April.

“CMR believes that only 40-45% of the existing Jio subscribers will continue to use their services after the ‘Happy New Year’ offer expires by March 31st, 2017,” the agency had predicted close to the transition period.

Business news channel ET Now reported that only 13% — or about 15-16 mln — users had opted for the company’s paid plans as of March 28 — three days before the deadline.

It was not just the analysts who under estimated the newcomer’s impact on the market.

Speaking in October last year, Bharti Airtel CEO Gopal Vittal expected Jio to add around 40 mln subscribers before slowing down due to the lack of 4G handsets in India.

“As of now, they might have probably 25 million-26 million customers,” he said in October. “They are still adding at the rate of maybe 400,000, 300,000 to 500,000 a day, which means that by December you could potentially see 40 million customers in that ballpark. And after that there could be some slowdown because of the sheer absolute number of 4G devices in India.”

Not surprisingly, when Jio announced it had crossed 100 mln subscribers in March, many attributed it to users resorting to buying multiple connections to take advantage of the free data offer, which was capped on a per-connection basis.

This made it all the more likely that there would be a drastic drop off in April when the freebies got over and the time came to pay for data.

The average Street estimate was for a drop to about 75 mln subscribers.

Instead, according to numbers released by the regulator today, the company reported an increase of 3.9 mln subscribers in April to 112.6 mln users.

Part of the reason for the unexpected success of the company in retaining its subscriber base could have to do with its ‘Summer Surprise Offer’ that allowed existing customers to continue their freebie plan for another three months by spending Rs 402, as many indeed seem to have done.

These numbers also mean the new entrant started its commercial operations with twice as many paying high-speed data customers compared with the market leader Bharti Airtel. Against Jio’s 113 mln, Airtel had only 50 mln 3G+4G customers at the end of April.

Other players were even further behind. Vodafone had 39.75 million high-speed data customers, Idea Cellular had 24 million and Reliance Communications had 14 mln.

Follow ULTRA.news
Tata DoCoMo users get Airtel network, but not the tariff plans yet Bharti Airtel and Tata Teleservices said they have started moving customers of Tata DoCoMo to the Bharti Airtel network using what is called an 'intra-circle roaming' or ICR agreement.This essentially means that Tata Teleservices will continue to operate a network in a techn...
Reliance Jio arrests trend of declining net additions; user activity increases Reliance Jio, India's newest operator, added 5.94 mln subscribers in September, breaking a declining trend in net additions and taking the total subscriber number to 138.62 mln (13.86 cr).Even as the company increased its subscriber numbers, it was also able to reduce the p...
After Reliance Jio, Idea offers 100% cashback on Rs 357 plan Idea Cellular, reportedly India's third largest 4G operator by volume, has started offering a 100% cash-back scheme even as the Cellular Operators Association has complained against such schemes.Similar cash back schemes have been announced by Reliance Jio in an effort to ma...
RCom sends legal notice to rivals for spreading rumors Anil Ambani Group's Reliance Communication said it has sent 'cease and desist' notices to its rivals trying to win over its enterprise customers by creating fear about the company shutting down.The development comes in the wake of announcements by the company that it was gra...
As Jio reality sinks, Idea abandons ‘limited aggression’ strategy Idea Cellular has abandoned its earlier strategy of 'limited aggression' in dealing with the threat from Reliance Jio and Bharti Airtel, and will be more visible in its counter strikes from now, said CEO Himanshu Kapania."From end October, Idea has shifted its earlier stand ...
Bharti Airtel raises Rs 3,325 cr by selling shares in Infratel Bharti Airtel said it raised Rs 3,325 crore (USD 510 Million) by selling shares in its tower subsidiary.It sold 83 mln shares at Rs 400.60 each. The price was at a discount of 3.6% to the previous day’s closing level.Shares of Infratel opened down by about 4% today due ...
Tata Teleservices loses 7.3% subscribers in October in Maharashtra Tata Teleservices, the mobile telecom arm of the Tata Group that was sold to Bharti Airtel last month, lost about 7.3% of its nearly 7 mln mobile subscribers in Maharashtra and Goa, according to a regulatory filing by the company.Tata Telservices Maharashtra Ltd, as the compa...
Bharti Airtel unveils new postpaid plan 499 with 20 GB data Bharti Airtel said it had introduced new 4G plans for its postpaid, or contract, customers, bringing some of the benefits that were hitherto available only to the prepaid segment.The new plan has been priced at Rs 499 plan for the postpaid segment.However, compared to pr...
Airtel Broadband users get to ‘carry over’ unused data to next cycle Bharti Airtel said its home broadband users will get to carry over all unused data benefit to the next billing cycle up to a limit of 1,000 GB."This is a first of its kind innovation in the fixed home broadband segment in India. The 'Data Rollower facility will ensure that Ai...
Not getting MNP code due Reliance network down? Vodafone to help Vodafone has come forward and allowed users of Reliance Communications to use its network if they want to generate their MNP code.The MNP code so generated can be used by the RCom subscriber to port to any operator in India, including Vodafone.This will help those Relian...
RCom says still talking to Brookfield, others to sell towers Reliance Communications said it is in talks with several parties, including Brookfield Asset Management, to sell its tower assets."The Company is renegotiating the tower transactions with all the interested parties including Brookfield Infrastructure Group," it said.The...
4G prices to stay low for a year – Airtel unveils cheap 1-yr plan If there are people who expect data prices to rise substantially in the next one year, they are probably not working at Bharti Airtel.India's biggest telecom firm by revenue has unveiled long-term recharges that allow users to lock in the current cheap prices for up to a yea...
Reliance Industries to raise Rs 5,000 cr next week via listed debentures Reliance Industries said it would raise Rs 5,000 cr from the debt market by issuing debentures on Wednesday, November 8.Jio has taken the market by stormThe debentures issued will not be convertible to equity shares and will be sold privately (private placement) without ...
Hathway Broadband starts FTTH, data use up 26% in 3 months Hathway Digital said it has started rolling out fiber-to-the-home services in congested areas, and also reported a strong increase in data use after slashing prices and increase quotas.For the three months ended September, an average consumer on Hathway Broadband increased h...
Post Bharti Airtel deal, Tata DoCoMo reaches out to worried subscribers Photo by Adithya VikramTata DoCoMo has started reaching out to customers to prevent them from leaving the network in droves, ahead of a takeover of the mobile operations by Bharti Airtel.Subscribers of Tata DoCoMo, a brand operated by Tata Teleservices, had started porti...
RCom could sell assets to Reliance Jio, go virtual – Fitch Reliance Communications could ink more spectrum selling and sharing agreements with Mukesh Ambani-controlled Reliance Jio, Fitch Ratings said, adding that the Anil Ambani company would end up as a mobile virtual operator after its ongoing restructuring.RCom promoter Anil Amb...
Bharti Airtel ARPU falls below Jio’s; but data usage zooms Bharti Airtel, India's largest telecom company by revenue, reported further erosion in its revenue and profit in September quarter compared to the previous June quarter.The company reported revenue of 21,777 cr, down 12.3% compared to a year ago and down 0.8% compared to the...
Bharti Airtel Q2 profit margin up, but ARPU falls Bharti Airtel, India's largest telecom company by revenue, reported further erosion in its revenue and profit in September quarter compared to the previous June quarter.The company reported revenue of 21,777 cr, down 12.3% compared to a year ago and down 0.8% compared to t...
BSNL to increase broadband speed to 10 Mbps from tomorrow Bharat Sanchar Nigam Ltd has increased the speed of all its broadband to 10 Mbps from 2-4 Mbps from tomorrow for all plans starting from Rs 675 per month.This price and data allocation of the plans will remain unchanged, it said.For plans below Rs 675 per month, the down...
Bharti Infratel to try to buy Vodafone & Idea stake in Indus Towers Bharti Infratel, the tower arm of Bharti Airtel, said it has decided to explore the possibility of buying out the stakes of Idea Cellular and Vodafone in rival tower company Indus.Bharti and Vodafone currently own about 42% each in Indus, while Idea holds about 11%. As a res...