JioPhone offers and much-awaited low-cost smartphones are likely to help Reliance Jio to gain more subscribers and market share as per JM Financial report. The report also suggests that the delay in increasing prices is not going to affect the company's average revenue per user (ARPU). Additionally, the Financial services group said that Reliance Jio's subscriber addition was not that good in FY21 due to the spectrum issues and increased data demand.
"Better execution and positioning of the competition (Airtel), which has enabled it to gain a higher share of mobile broadband subscribers. However, we believe the subscriber momentum could be bottoming out, given the aggressive strategy of Jio to acquire significant quantities of spectrum in the higher frequency bands to improve capacity," the firm said.
New JioPhone Offers Might Attract Feature Phone Users
The JioPhone 2021 offers unlimited services for two years. It includes data, calling benefits, and the new JioPhone. The newly launched three plans are valid for 24 months and 12 months. These plans are priced at Rs. 1,999, Rs. 1, 499, and Rs. 749 respectively. Besides, Reliance Jio said that it has already upgraded 100 million users and with this offer, it is planning to attract 300 million feature phone users.
Notably, Jio added 4.7 million customers in March 2020, but the number has dropped to 2.3 million during FY21. However, JioPhone's offers are likely to help the company to increase the subscribers in the coming months.
"A successful traction in both the new Jiophone offers and the impending smartphone launch - enabling Jio to increase subscriber addition - would be the key catalyst for an industry-wide tariff hike, which looks likely by the end FY22," the report added.
Reliance Jio Plans For 2021: Details
Furthermore, the report suggested that Reliance Jio is now focussing on new products to increase the subscriber count. The company is likely to bring 5G smartphones and a JioBook laptop this year at its AGM. Reliance Jio is likely to announce these products in August or September this year. The upcoming products are expected to be under Rs. 15,000. Apart from that, Reliance Jio is hosting online gaming E-sports events to get new subscribers on its board.