Jio could launch new set of tariffs around January

Jio could launch new set of tariffs around January, and the newly announced tariffs are only applicable from January 1, 2017, Credit Suisse said in a note.

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CS said that Jio has not revealed all its cards yet and these tariffs may not be the final tariff offers. “These plans are applicable only from 1-Jan-2017, by when the incumbents will have ample time to match (with meaningful pain of course). We suspect a new set of tariffs could be announced closer to Jan,” the firm said.

CS said that Jio’s majority of monthly plans are targeted at the higher end users having Rs 500 and above average revenue per unit (ARPU) against Bharti Airtel’s ARPU of Rs 196. The firm said that only Rs149 plan is right in the mass market segment.

“To give a context, the average Bharti customer today spends Rs196 per months, consumes 414 mins of voice (incoming + outgoing) and ~200MB of data. Under Jio’s Rs149 plan, this average customer can unlimited voice, 50% more data for 25% lower monthly spend. The only constraint from Jio’s perspective in this simple analysis, is that the customer needs to have a 4G phone,” Credit Suisse said.

“Jio’s launch has been one of our key worries we have had for the last couple of years, and this is turning out to be quite negative. We continue to stay cautious,” Credit Suisse said.