Reliance Jio Offers Cheaper Plans Than its Rivals: Report

In a time where all telecom players are battling it out trying to offer dirt-cheap tariff plans at very affordable prices to lure more subscribers, a new report by CLSA has suggests that the postpaid plans from Bharti Airtel and Vodafone Idea are priced at a premium of 1.5 to 2 times higher than that of Reliance Jio.

As per the report, Bharti Airtel and Vodafone Idea have 15-30 percent higher premium in prepaid compared to Reliance Jio's plans.

The CLSA report claims that Reliance Jio has the cheapest postpaid plan, priced at Rs 199 offering 25GB data and unlimited voice calls.

On the other hand, Sunil Mittal-led Bharti Airtel plans start at Rs 499 and go as high as Rs 1,599 offering similar benefits. However, the company is providing a Rs. 399 plan which is available in very limited circles. Whereas, Vodafone Idea offers similarly priced plans as Airtel, but offers a Rs 299 plan where users will get 30GB data and free unlimited calling.

Market Share In Terms Of Internet Subscribers

Jio also holds the top position with 48.17 percent of the market share in terms of internet subscribers, followed by Vodafone Idea with 22.98 percent at the quarter ended (QE) March-19.

Bharti Airtel held the third position in respect of to internet subscribers with a market share of 22.41 percent. Out of a the total of 332 internet service providers, top 10 service provideroperators combined together hold 99.47 percent of the total internet subscriber base during the same period.

Besides, Jio has maintained its lead over other service providers in adjusted gross revenue (AGR) for the quarter ended (QE) March- 2019 at about Rs. 9,839 crores. While Bharti Airtel registered an 8 percent decline in its AGR at Rs. 5,920.2 crores during the same quarter.

What We Think About The Report

There is no doubt that the telecom sector has become highly competitive due to aggressively pricing priced plans by Reliance Jio. The sector saw a significant consolidation within the industry with numerous exits from the sector.

This has also led to Reliance Jio has become the second largest operator in India.