Jio likely to unleash disruptive 4G data pricing to poach top-end data customers from incumbents: Report

Jio is anticipated to unleash disruptive 4G data price plans to poach top-end data customers from incumbent carriers such as Bharti Airtel, Vodafone India and Idea Cellular in urban markets, according to an analyst at a leading European brokerage, quoted by an Economic Times report.

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The report said that these data customers are likely to generate bulk of Jio’s revenues in future. The analyst said that data average revenue per unit (ARPU) will be the principal driver of its overall customer revenues that will also include voice ARPU, since 100 per cent of Jio’s subscribers will be data users unlike those of incumbent telecom operators.

Another brokerage firm, CLSA, expects that the Mukesh Ambani-owned telco’s target market will be large enough, given the rising 4G user base in the country. The firm, in a note, said that the 4G phone population in India is slated to rise to 500 million in five years. CLSA also expects the base of subscribers generating ARPUs upwards of Rs 300 to increase to 300 million in three years from the current level of 165 million. It added that ARPU will rise as faster data speeds boost data usage.

In order to acquire as many as 265 million subscribers, which is over Bharti Airtel’s current mobile user base of 254 million, Reliance Jio is may need to generate a 10 per cent pre-tax return on capital employed (RoCE) by the fifth year, according to the brokerage firm, which also said that higher 4G data usage will allow the Mukesh Ambani-owned telco to achieve Rs 250 level of average revenue per unit (ARPU).

Reliance Jio, which already serves to over 7 lakh subscribers in the country, may start operations by September this year following rigorous testing of its network and services. As per media reports, the average data usage per subscriber of Reliance Jio stands at 18.6 GB, which translates into a total usage of 13 million GB.

What do you think will Jio offer disruptive 4G data pricing ? Do let us know via comments.

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71 Comments on "Jio likely to unleash disruptive 4G data pricing to poach top-end data customers from incumbents: Report"

 

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mkj
June 26, 2016 11:04 am 11:04 AM
we are also facing speed drop issue, when we connect to google services especially youtube i think speed is throttled,but when i try to download files from other websites are get connected at normal speed.please don’t test your internet speed using speedtest.net because most of their host are slow here my speed test results using speed test.net,with different host , please use netvelocity app to check your internet connection speed,because speed is vary based on which band your get connected if your get connected on 2300mhz you will get around 15mb to 40mb at the same time if get connected… Read more »
Kirti
June 29, 2016 12:33 pm 12:33 PM

the speed you are getting in indoor is due to Band 5 with limited 5Mhz spectrum, which can’t feel you ride on a rocket
When you put your phone on balcony, it must latch to Band 40 which is a beast.
I get…
4-5 Mbps on Band 5
5-7 Mbps on Band 3
15-35 Mbps on Band 40

Akshay dhir
June 25, 2016 4:46 pm 4:46 PM

When will AGM of RIL.??? Because i think mukesh ambaniwill tell us about jio launch in agm or may be launch date also

LoveAirtel
June 25, 2016 6:51 pm 6:51 PM

Like he did last year?

G Muralidharan
June 25, 2016 12:02 pm 12:02 PM

I am using Jio for the last 30 days, in first 20 days i used to get minimum 10 Mbs speed. But in the last 10 days i am getting 1.5 Mbs to 6 Mbs. I registered a complaint over 199, one of the Jio call center Executive today told me that we are offering 2 Mbs speed for the current Unlimited Plan. While selling the LYF mobile with Jio sim they assuring a High Speed but in reality It`s entirely different.

Jagannath
June 25, 2016 5:29 pm 5:29 PM

As of now they are throttling speeds for many users who have heavy data usage. Keep complaining and your issue will hopefully be resolved. Mine got resolved yesterday.

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