Thursday, 23 February 2017

Jio`s offer to compel rivals to bundle more data: Analysts

Reliance Jio's move to end its freebies will come as a "mild" not an "absolute" relief to rivals, who will be forced to match the newcomer's offer and pack more data to stop customer churn. Actions from competition would bring down overall pricing levels in the industry or compel a lot more data content in lower Average Revenue Per User or ARPU bundles, said a note by JP Morgan.

"RJio's new pricing plan represents a compelling enough proposition for the post-paid subscribers/high-end pre-paid subscribers of competitors (of ARPU less than Rs 300), who can enjoy a lower ARPU from RJio for incomparably more content. Bharti packs in 4GB and unlimited voice in its monthly Rs 345 plan through calendar year 2017 - it will now have to offer markedly more data to look comparable with RJio and prevent consumer defection.

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