Reliance Jio’s 72 Mn Prime Users With At Least Rs. 303 Plan Can Account For Rs. 213 Bn Revenue By March 2018: Moody’s

A significant portion of Reliance Jio’s 72 million subscribers are likely to opt for the Rs 303 plan, given that is the minimum plan that gives complimentary services for three months, Moody’s Investors Service said in a note.

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The ratings agency said that the Jio-Prime membership will need to continue to be competitive and service quality will need to be maintained at high levels in order to retain customers, considering that the price plan does not require the subscriber to commit beyond the 28 days, and they are free to switch at any time after that.

The 4G entrant announced an extension of the deadline for enrolment to its Jio-Prime plan to 15 April from 31 March, which is likely to result in further increase in its paying subscriber base.

At the same time, the company announced that all Jio-Prime members who subscribe to higher value plans (INR303 and above) will enjoy complimentary services until 30 June and the subscribers will only be charged for services from July.

“Assuming all 72 million subscribers pay Rs 303 per 28 days for July 2017 to March 2018, Jio will be able to generate revenue of about Rs 213 billion for the fiscal year ending March 2018,” Moody’ said , adding that Bharti Airtel Limited’s India mobile services generated revenue of Rs 436 billion for the nine months ended 31 December 2016.

The incumbent telecom operators such as Bharti Airtel, Vodafone and Idea Cellular are already expanding their 4G network coverage and are lining up price plans to compete with Jio’s offerings.