HOME > BUSINESS > Today’s Reliance Jio tariffs could be just the beginning – analyst

Today’s Reliance Jio tariffs could be just the beginning – analyst

reliance-jio-tariffs

Reliance Jio unveiled tariffs today that seem targeted one key aim — disrupt the businesses of its rivals.

To this end, the company has made voice calling — the bread and butter of its rivals — totally free to anyone who buys a data pack of at least 300 MB per month (Rs 149).

Not surprisingly, this has set the cat among the pigeons of Indian telecom and is likely to keep rivals busy.

However, in all this, Jio seems to have forgotten the ‘heavy data user’, as we have detailed in this article.

Now, a telecom analyst has said that he would not be surprised if the Mukesh Ambani firm unveils new rates closer to Dec 31 when its ‘free for all’ offer ends.

Under the welcome offer — also announced today — Jio said all its subscribers, irrespective of which plan they sign up for, will get unlimited voice calls, 4G data and SMS till the end of this year.

It is only from Jan 1 2017 that billing will start.

According to industry inputs, Jio was more or less forced to reveal its tariff card today by rival operators who put pressure on the regulator and the government saying the firm was misusing legal loopholes.

They accused Jio of doing a massive launch operation in the guise of testing to escape revealing its tariff plans. Under India’s telecom rules, all commercial operators must first file their tariff plans and get them approved by the telecom regulator.

However, said the rivals, Jio was delaying the filing of tariffs so that the rivals will not be able to prepare themselves for the eventual onslaught of cheap plans when Jio launched commercially.

According to analyst Sunil Tirumalai of Credit Suisse, Jio may yet have an ace or two up its sleeve and may not have revealed all its cards yet.

“Our initial impression is that this may not be the final tariff offers (i.e. company has not revealed all their cards yet),” Tirumalai and his colleague Viral Shah said in a note.

“As mentioned, these plans are applicable only from 1-Jan-2017, by when the incumbents will have ample time to match (with meaningful pain ofcourse). We suspect a new set of tariffs could be announced closer to Jan.”

Tirumalai and Shah have been among the most cautious, even pessimistic analysts covering the Indian telecom sector.

He, along with his colleagues at Credit Suisse have warned that Jio’s entry would cause major disruption in the telecom market and upset the businesses of rivals.

“While most of the monthly plans are targeted at the higher end users (Rs500+ ARPU vs current Bharti ARPU of Rs196), the Rs149 plan is right in the mass market segment,” the analysts said.

They noted that the average Bharti customer today spends Rs196 per months, consumes 414 mins of voice (incoming + outgoing) and ~200MB of data.

“Under Jio’s Rs149 plan, this average customer can unlimited voice, 50% more data for 25% lower monthly spend. The only constraint.. is that the customer needs to have a 4G phone,” noted.

Follow ULTRA.news
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...
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 ...
Idea sees half of India remain 2G-only in 2022, to refarm 900 MHz for 4G About 600-650 mln telecom customers in India will remain 'pure 2G' users even in the year 2022, while 4G users would swell from 175 mln to 750 mln, said Himanshu Kapania, CEO of India's fourth largest telecom operator Idea Cellular.At present, India has around 1.05 bln activ...
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...
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...
Reliance Jio impact could be ‘painful’ for banks, but good for industry – Ind-Ra Credit rating agency India Ratings has warned that the ongoing consolidation in the telecom industry caused by the entry of Reliance Jio will be painful for lenders and banks, but was good for the industry as whole.It said it had become difficult for smaller players to survi...
Post GSM shutdown, RCom may build own 4G network separate from Jio’s Reliance Communications today said that it was 'optimizing' its 2G and 3G networks in the light of its decision to focus on 4G, but also dropped a hint it may use the towers and infrastructure to later launch its own, fully-owned 4G network.At present, it depends on Relianc...
Vodafone offers unlimited calls for 1 week at Rs 69 Vodafone India unveiled a new pack priced at around Rs 69 that allows users to make unlimited calls for one week at just Rs 69.The scheme is among the most affordable voice plans in India for GSM users.The total cost works out to about Rs 250 per month.Unlike other ...
After DTH, RCom to shut down GSM operations Reliance Communications, the telecom arm of the Anil Ambani Group, has got moving on its announced strategy of becoming a 4G-only operator by shedding its GSM and 3G operations.RCom 4G tariffAccording to industry sources, the company has been re-allocating its staff to t...
Reliance Communications says MTS merger to be closed in 2 weeks, gets DoT nod Reliance Communication Ltd said it received the approval of Department of Telecommunication (DoT) for its merger with Sistema Shyam Teleservices Limited or SSTL, which runs MTS branded services in India.With this, the Anil Ambani Group company has received all the major regu...
BSNL gives ‘free broadband for 1 month’ via FB, Twitter State-owned Bharat Sanchar Nigam Ltd said it would offer one month of its wired services -- DSL, landline or fiber -- free if the booking is made via Twitter or Facebook.The user will have to pay security deposits and installation charges, if any. However, he or she will get...
Why Reliance JIO’s new tariff plan is BAD for Bharti Airtel, Idea & Vodafone Airtel's stock performance (2002-2017)The stock of Bharti Airtel is at a two-year high, not far from its life-highs of late 2007, but going by the latest tariffs unveiled by Reliance Jio, investors will do well to hold off on the bubbly for a while longer.Airtel closed a...
JIO Wallet Offers: Paytm, Amazon, PhonePe give cashback on 399 recharge Wallet players like Paytm, Mobikwik, PhonePe and AmazonPay have come up with cash back offers for Reliance Jio users who want to take advantage of the Rs 399 recharge scheme valid till today midnight.Last week, India's largest wireless Internet provider said anyone rechargin...
Reliance Jio’s New 4G Plans: No More Tariff Increases? Jio's new 4G tariff from Oct 19Reliance Jio has unveiled a set of new plans that will come into effect from tomorrow, effecting a price increase of about 15% to existing tariff.The phrasing of the new plans also suggests that these are 'regular' plans, and not promotiona...
Reliance Jio to withdraw Rs 399 plan next week Most customers of Reliance Jio, the country's largest telecom operator by volumes, will not be able to get the 84GB-for-399 plan starting next month, the company's deputy chief financial officer V Srikant said on Friday.Asked how the company's average revenue per user (billi...