There have been numerous speculations in the recent past that the Mukesh Ambani-led Reliance Jio will extend its Welcome Offer until March next year.
However, if and when it turns out to be true, it may certainly benefit other telcos in the country such as Bharti Airtel, Idea, and Vodafone.
As cited on ET Telecom, Reliance Jio will be labeled as a “discount brand” if it goes on to extend its Welcome Offer beyond December. Which in turn, may subdue the company’s chances to poach higher-end customers from its counterparts.
The report cited Rajiv Sharma’s (an analyst from HSBC) note which read “The biggest threat could be that a prolonged extension (of free services) may position the new entrant as a discount brand and limit its ability to churn the mid to high-end subscriber with incumbent telcos.”
Additionally, the report posits that mid and high-end subscribers will feel slightly uncomfortable to move to discount brands (according to the industry analysts).
However, people close to the telecom have refused to agree with the above statements. Reportedly, they further went on to say that “Where’s the question of Jio becoming a discount brand when a majority of its subscribers use more expensive VoLTE devices priced between Rs. 4,000 and Rs. 20,000?”
“Jio is conceived as a universal digital offering and its superior services are already being enjoyed by millions of consumers across all segments,” they added.