Reliance Jio’s fresh prepaid offer
Kolkata: Reliance Jio Infocomm’s new prepaid tariffs offering extra data underline the Mukesh Ambani-controlled 4G carrier’s pricing aggression to wrest market share from incumbent rivals even at the cost of a short-term revenue loss, analysts said.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.
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
The brokerage said it expected Jio’s Rs 399 recharge pack to be the most popular one as “it prices data at Rs 1.6 per GB”, well below Bharti Airtel’s “headline data price of Rs 2.3 per GB”.
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 AirtelNSE 0.23 %, adding fuel to the country’s relentless telecom price wars.
Analysts said over the past few months incumbents – Bharti Airtel, Vodafone India and Idea CellularNSE 2.11 % – had maintained their headline tariffs at a premium to Jio’s rates but were making segmented offers to customers, which were on a par or even better than Jio’s offerings. Segmented offers are targeted at specific customers – not all – to retain them.
This article is the form https://economictimes.indiatimes.com
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