Just In
- 3 min ago Flipkart Teases “Jaw-Dropping” Discount on iPhone 15: All-Time Low Price Anticipated
- 11 min ago President Joe Biden Signs Bill to Ban TikTok in the US: Unless This One Condition is Met
- 1 hr ago Qubo InstaView Video Door Phone Launched in India: Check Price, Features
- 2 hrs ago OnePlus Watch 2 New Nordic Blue Colour Option Launched; Here’s How Much It Costs
Don't Miss
- News Rahul Gandhi To Contest From Amethi? Priyanka Gandhi Vadra's Raebareli Debut?
- Movies Heeramandi: Richa Chadha Over The Moon As Rekha Cried And Hugged Her
- Automobiles BMW i5 M60 xDrive Launched In India At Rs 1.195 Crore - 592bhp, 516km Range
- Sports IPL 2024: How the 10 Most Expensive IPL 2024 Auction Buys have performed this Season? Complete Details and Ratings
- Finance Gold Prices Ayodhya: In Ram-Janma-Bhumi, 24carat Falls By Rs 380 In 10-Grams, Drops By Rs 3,800 In 100-gram
- Education JEE Main Result 2024 Out, Check Category- Wise Toppers' List Here
- Lifestyle Heeramandi Screening: Alia Bhatt, Ananya Panday, Rashmika Mandanna And Others Serve Finest Ethnic Style!
- Travel Escape to Kalimpong, Gangtok, and Darjeeling with IRCTC's Tour Package; Check Itinerary
Jio's free offers may continue for 12- 18 months
The new offers by the Jio will continue to eat the revenue stream and that is going to have a cascading impact on Government revenue, payments to banks, as well as, equipment manufacturers and service
The tariff war is not going to end soon, we says this as Mukesh Ambani - owned Reliance Jio is likely to continue free offers for next 12- 18 months which means that incumbents players will launch more plans to counter Jio.
Jio's tactic would lead to pressure on the average revenue per user (ARPU) of incumbent operators, US bank Morgan Stanley said in a report. It added that ARPU for Bharti Airtel, Idea Cellular, and Vodafone India has been effectively capped at about Rs 300 due to Jio's current offers, a report published in The Economic Times said.
However when GizBot had interviewed Rajan S Mathews, Director General of Cellular Operators Association of India, he mentioned that "the new offers by the Jio will continue to eat the revenue stream and that is going to have a cascading impact on Government revenue, payments to banks, as well as, equipment manufacturers and service providers to the industry."
Jio's new offer will have cascading impact on Government revenue, says Rajan Mathews of COAI
Meanwhile according to a report by India Ratings and Research (Ind-Ra), the Indian telecom industry has lost around 20 percent revenue due to free services by Mukesh Ambani-led Reliance Jio.
Ind-Ra says that the incumbent telcos are moving towards more bundling of voice and data plans in line with RJio's voice calling bundled with data. Blended average revenue per user (ARPUs) are slated to decline by 10 percent in FY18.
Consolidation in the industry will help a quicker return of pricing power. The proposed merger of Vodafone Mobile Services Limited and Idea Cellular Ltd (Idea) will be positive for the telecom industry by eliminating duplication of a spectrum and infrastructure capex," report added.
However it says, smaller telcos may not be able to sustain cash burn by operating independently and are looking for exit options.
Reliance Jio has touched the 108.9 million customer base as on March 31, 2017, of which over 72 million signed up for Jio Prime.
-
99,999
-
1,29,999
-
69,999
-
41,999
-
64,999
-
99,999
-
29,999
-
63,999
-
39,999
-
1,56,900
-
79,900
-
1,39,900
-
1,29,900
-
65,900
-
1,56,900
-
1,30,990
-
76,990
-
16,499
-
30,700
-
12,999
-
11,999
-
16,026
-
14,248
-
14,466
-
26,634
-
18,800
-
62,425
-
1,15,909
-
93,635
-
75,804