Reliance Jio has raised prices of some popular mobile plans, indicating early signs of stability in the industry that is struggling to keep pace with low tariffs introduced by the Mukesh Ambani-owned company.
The telco’s most popular plan of Rs 399 for 84 days will now be available for Rs 459 and subscribers who want to continue with the same rate will get the pack for 70 days instead. The changes kick in from October 19, the company said on its website, days after indicating that some rates will be increased to garner higher revenue from subscribers.
Apart from trying to retain highend customers, Jio is introducing sachets and offering more data to attract lower-spending customers, analysts said. With Jio’s price increases, rival telcos will get some relief and a little breathing space after engaging in intense competition that’s expected to continue for about a year more.
The Ambani-owned company is feeding its data-guzzling customers double the amount of GBs for its Rs 149 and Rs 509 packs. The Rs 149 pack, which didn’t attract many takers, will now offer 4 GB a month instead of 2 GB. Those using the Rs 509 pack will get 2 GB a day instead of 1GB. The plan brings high-speed data to subscribers at the lowest industry price of Rs 5.2 per GB, said the telco.
Jio raises price of 84-day plan to Rs 459, will offer double data under Rs 149 scheme
For small value recharges, Jio has rolled out daily and weekly packs. Under these plans, a user can get free voice, SMS and 0.15 GB of data daily for as low as Rs 19 a day, Rs 52 a week or Rs 98 for two weeks. The operator increased the validity of its long-term plans, extending the Rs 1,999 plan to six months instead of 120 days and the Rs 4,999 plan to one year from 210 days. This could be aimed at holding on to customers and preventing them from switching to rivals that have been matching Jio’s offers since it started in September 2016. Jio, the telecom unit of Reliance Industries Ltd., posted a net loss of Rs 270.59 crore for the quarter ended September on revenue of Rs 6,147 crore.
The company expects to turn profitable at the net level “very shortly,” with average revenue per user – a key performance parameter – likely to improve as it increases rates and leverages the advantages of having invested in 4G technology.
Jio’s ARPU stood at Rs 156.4 a month compared with Rs 154 of market leader Bharti Airtel in the April-June period.
Low prices have helped Jio net 138.6 million users, consolidating its position as the fourth-largest telco. Of these, 15.3 million were net additions in the just-ended quarter, with only 1% of users moving to another network, Jio said. Active users numbered 107 million. Jio is targeting 50% of revenue market share in the next few years and has offered a mass-market phone effectively for ‘free’ on a down payment of Rs 1,500 that’s refundable after three years.
The telco’s most popular plan of Rs 399 for 84 days will now be available for Rs 459 and subscribers who want to continue with the same rate will get the pack for 70 days instead. The changes kick in from October 19, the company said on its website, days after indicating that some rates will be increased to garner higher revenue from subscribers.
Apart from trying to retain highend customers, Jio is introducing sachets and offering more data to attract lower-spending customers, analysts said. With Jio’s price increases, rival telcos will get some relief and a little breathing space after engaging in intense competition that’s expected to continue for about a year more.
The Ambani-owned company is feeding its data-guzzling customers double the amount of GBs for its Rs 149 and Rs 509 packs. The Rs 149 pack, which didn’t attract many takers, will now offer 4 GB a month instead of 2 GB. Those using the Rs 509 pack will get 2 GB a day instead of 1GB. The plan brings high-speed data to subscribers at the lowest industry price of Rs 5.2 per GB, said the telco.
Jio raises price of 84-day plan to Rs 459, will offer double data under Rs 149 scheme
For small value recharges, Jio has rolled out daily and weekly packs. Under these plans, a user can get free voice, SMS and 0.15 GB of data daily for as low as Rs 19 a day, Rs 52 a week or Rs 98 for two weeks. The operator increased the validity of its long-term plans, extending the Rs 1,999 plan to six months instead of 120 days and the Rs 4,999 plan to one year from 210 days. This could be aimed at holding on to customers and preventing them from switching to rivals that have been matching Jio’s offers since it started in September 2016. Jio, the telecom unit of Reliance Industries Ltd., posted a net loss of Rs 270.59 crore for the quarter ended September on revenue of Rs 6,147 crore.
The company expects to turn profitable at the net level “very shortly,” with average revenue per user – a key performance parameter – likely to improve as it increases rates and leverages the advantages of having invested in 4G technology.
Jio’s ARPU stood at Rs 156.4 a month compared with Rs 154 of market leader Bharti Airtel in the April-June period.
Low prices have helped Jio net 138.6 million users, consolidating its position as the fourth-largest telco. Of these, 15.3 million were net additions in the just-ended quarter, with only 1% of users moving to another network, Jio said. Active users numbered 107 million. Jio is targeting 50% of revenue market share in the next few years and has offered a mass-market phone effectively for ‘free’ on a down payment of Rs 1,500 that’s refundable after three years.
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