The free run of Reliance Jio ends on March 31 after a period of six months. The Reliance Jio users may still continue to enjoy all the data services at a nominal rate along with the free voice calls for three more months. According to the analysts and people working with Jio stated that Reliance Jio service operators are trying to bring out a new tariff plan with validity until June 30. Unlike the previous offers, the latest introductory offer will charge a nominal rate of 100 NR for data and provide free voice calls. One of the Jio employees said that they need to devise a strategy to make revenue.
It has been evident that the free voice and data services have garnered 72 million subscribers in four months since its launch on September 5, 2016. This generated fierce competition and India’s other telco giants like Idea, Airtel and Vodafone had to slash their data prices and also devised some offers to give free voice call services with some plans in order to counter the fierce pricing offered by Reliance Jio. Since they are providing only 4G services at affordable rates, it will lead to a mass adoption of this technology. However, it is tricky because Jio is still not everyone’s primary phone so they run a risk of losing customers if there is a significant increase in the rates.
However, a nominal charge can actually help Jio test the loyalty of its customers and also help in changing the market rates. It is expected that many of the Jio users will go back to their primary phone if the free service is stopped. Moreover, half of its subscribers will leave if they do not fix their call drop problem before starting to charge its customers. But analysts say that offering a cheaper data price than what was announced in September and providing free voice calls can help them tackle a sharp fall in their subscribers.
Reliance Jio has to soon come up with a cheaper tariff plan because its competitors have already launched some reduced data packs. In the long run, the cheaper tariffs are a burden to the companies as well as the government loses its license fee.
Whatever it is, reliance has to move fast in generating a model which will help them keep their subscribers as well as get some revenue too.
Disclaimer: These are just speculations and the authenticity of the information does not lie with us. This might be subject to change as per the discretion of the company.
Source: Economic Times