Reliance Jio, Indian’s number one telecom operator in terms of subscriber market share and 4G coverage, might go opposite Airtel and Vodafone Idea (Vi). The telco isn’t in need of a prepaid tariff hike desperately like Airtel and Vi. Jio is already making huge profits even though its average revenue per user (ARPU) and active subscriber percentage is lower than Airtel.
Vodafone Idea recently announced prepaid tariff hikes following Airtel’s announcement yesterday. While a tariff hike would solidify Jio’s financial books even further, Jio might wait for a while before going for prepaid tariff hikes. This is because it is a golden opportunity for the telco to go ahead and expand its 4G subscriber base even further.
Jio’s Prepaid Plans More Attractive than Airtel, Vodafone Idea
Reliance Jio’s prepaid plans at the moment look a lot more attractive than Airtel and Vi’s plans. While Airtel and Vi would be able to increase ARPU, Jio would be looking to garner more new users before it comes out with tariff hikes.
The onboarding of new customers in Jio’s networks should be a smooth ride as the telco has invested huge amounts in deploying additional spectrum across the nation. For example, both Airtel and Vi will offer their 1.5GB daily data plan with 84 days validity for Rs 719 after the tariff hikes. However, Jio will be offering the same plan with similar benefits for Rs 555. The difference in tariffs is significant for the customers to port out from Airtel and Vi to Jio. Jio’s 4G networks are available in more parts of the country as compared to Vi and Airtel.
Jio has always been strategising about how it can add more 4G users. This is the golden opportunity for the telco to take some users from Airtel and Vi. It will ensure that when 5G services are on the edge of launch, Jio has a mammoth subscriber base.