Reliance Jio Might Increase 10% Tariffs By Q4FY22; Here's Why

|

In order to attract new users, Reliance Jio is likely to adopt a new strategy. The telecom operator is expected to bring a segmented tariff hike as it wants to maintain its ongoing strategy of providing seven to 20 percent cheaper plans than Airtel and Vi. This means that Jio wants to increase its subscriber share instead of increasing the average revenue per user (ARPU) like other operators. However, it is expected that Jio might increase prices by 10 percent in the last quarter of the upcoming financial year.

 
Reliance Jio Might Increase 10% Tariffs By Q4FY22; Here's Why

"We believe tariff hikes are unlikely till Reliance Jio is able to stabilize its subscriber additions. Our analysis suggests that that smartphone subscribers form an estimated 75 percent of Jio's revenues, which is why we don't expect Jio to be aggressive in this segment and maintain its 7-20 percent tariff discount," analysts at Jefferies said.

 

Besides, analysts at the brokerage firm said that Reliance Jio has also decreased the price of feature phones to retain its users as three years contract of the users is going to end soon. They said that the company wants to retain its older users, which's why it has launched a new feature phone with three plans. The new plans are already live and are priced at Rs. 1,999,Rs. 1,499, and Rs. 749.

Reliance Jio ARPU Expectation By FY23: Details

In addition, the firm said that Reliance Jio might increase its ARPU to Rs. 159 by FY23 due to its tariff plans for smartphones and feature phones. "In our view, this is being led by multiple factors, which include consolidation of sims at a sector level, network congestion in some areas, and churn among JioPhone users," the firm added.

It said that Reliance Jio is looking at 500 million users, which is only possible if it creates opportunities in e-commerce and digital services. Furthermore, the brokerage firm indicates that Reliance Jio has to add 76 million more subscribers to increase its subscriber share to 492 million by FY21-23. It also said that Reliance Jio has to increase to market share to 40 percent FY23 from the current 35 percent to achieve these numbers.

Best Mobiles in India

Read More About: reliance jio

Best Phones

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Yes No
Settings X
X