Reliance Jio's cheap tariff plans are definitely hurting the revenues of the other service providers, But that's not all. The same is affecting Jio's revenues as well. Eventually, the latest market entrant in the telecom sector has the ability to fine tune its strategy to gain enough traction among the subscribers.
"The relatively low tariff of Jio is the opportunity also to further fine-tune their network itself because there are gaps, there are issues in network-optimisation," Mahesh Uppal, director of telecom consultancy firm Com First told BTVi in an interview.
He further added, "So while the company gets its network up to speed, it is good idea for them to makeover -- through out of necessity -- and by actually giving cheap or free services."
Uppal feels that the service provider will continue to extend the free services further and this is not surprising as it makes sense for the hurting revenues all across the board. However, this is definitely good news for the subscribers of Jio as they will get the benefit of accessing cheap broadband services without any glitches.
Any new market entrant across categories has to differentiate its products and services with low pricing strategies and freebies. In fact, freebies are a norm that is expected from the new companies that enter the market for the very first time.