Reliance JioPhone Sales Back on Track Courtesy of Rs 49 Tariff Plan: Credit Suisse

Reliance’s JioPhone sales which had begun to fall drastically after an initial surge are now back on track due to affordable Rs 49 plan, a Jio store survey by financial services Credit Suisse said. The feature phone which starts Rs 1500 is reportedly selling at a rate of 6 million units per month, boosting Jio’s subscriber base additions to 8 million plus every month. This boost is attributed to Rs 49 plan introduced by Jio Infocomm in January this year. The Rs 49 Jio plan offers users unlimited voice calling as long as the SIM is in JioPhone. The plan is comparatively 66% cheaper than rivals such as Bharti Airtel, Idea Cellular and Vodafone which offer unlimited calling plans starting from Rs 150.

reliance-jiophone-sales

Analysts Sunil Tirumalai and Viral Shah who wrote the Credit Suisse report say prior to the introduction of Rs 49 plan, the JioPhone sales took a nosedive after the initial frenzy post-launch in August 2017.

“In our conversations with some of these stores prior to the introduction of Rs 49 plan (end-Jan-2018), we understood that supplies had been building up but demand had cooled off (after the initial frenzy post Aug-Sep-2017 launch of the product),” added the Credit Suisse report.

As per the survey, it was only after the introduction of Rs 49 plan that the JioPhone sale picked up across the stores. More importantly, the report adds the sales momentum has sustained even two months after the introduction of the plan.

“This plan’s unlimited calling proposition appears to be a big draw,” the duo added.

The report dispels the view of some telecom operators who thought that Reliance wasn’t serious about long-term prospects of the JioPhone. Many across the telecom industry had hoped the discounted plan was a temporary offer to ‘clear out’ the remaining stock of an allegedly failed product.

Reliance Jio Infocomm had launched JioPhone as an ultra-affordable quasi-smartphone that aimed to let users stream videos and listen to music from the internet. However, given its small display and candy bar form factor, its primary use has been as a voice-only device. Based on the usage pattern, Reliance responded by launching the voice only Rs 49 plan, and this seems to have spurred the sales of the device.

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29 Comments on "Reliance JioPhone Sales Back on Track Courtesy of Rs 49 Tariff Plan: Credit Suisse"

 

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Jay
March 29, 2018 6:45 pm 6:45 PM

Superb

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Amit
March 29, 2018 11:19 am 11:19 AM

Need more 4G feature phones in several form factors.

Sathish, Tamil Nadu
March 29, 2018 12:39 am 12:39 AM

Why avoid and BSNL is still not come up with 49 pack to retain existing voice customer base…..

Arena
March 30, 2018 2:40 am 2:40 AM

Jio want data at the center of business. This hits calls centric telecos,….rule is user must be with jio, jio-jio calling makes the usage negligible, all 49 users don’t even talk 2-3 hours per month. Per day 20minutes and not everyday is today. Real motive is once a data user is data user for ever. This will break that stubborn evergreen golden 2g base avoid used to have.

SS(Shivang Singh)
March 29, 2018 12:31 pm 12:31 PM

The 49 plan is not sustainable even for Jio. Its only here for increasing sales of Jio phone.

Arena
March 30, 2018 2:43 am 2:43 AM

If a pipe carry 1000 liters at once…use or don’t use this instant is wasted with same power bill. So when jio sell its as low as 49 then 950+ liters will be sold…so its full utilisation of resources. Overall jio gains much.

dragonmonk
March 30, 2018 1:56 pm 1:56 PM

@Arena A pipe carrying liquid doesn’t operate on its own. It needs a pump to keep the liquid moving, which in turn needs electricity. To summarise, even if Jio is operating below network capacity, every additional subscriber still has associated operational costs.

Girish Gowda | BengaLuru
March 29, 2018 9:13 am 9:13 AM

Because then Jio will price it at 40rs.

dragonmonk
March 29, 2018 1:40 am 1:40 AM

Because it costs more than 49/month/user to build and maintain telecom infrastructure.

Arena
March 30, 2018 2:49 am 2:49 AM

Lol…still thinking like avoid…..use or don’t use power bills dont change. Simple logic…before people used to pay 200 for full TT once a while and used for extra longtime. Which made telecos unsustainable. Now it’s 49 unlimited… Use or don’t use all pay. Not all talk just bcz its unlimited….except lovers, telemarketers none talk much….that too in whatsap days.

dragonmonk
March 30, 2018 1:58 pm 1:58 PM

@Arena Do you have an illegal power connection? Power bills do change based on usage, at least for the rest of us. Going by your logic, if all operators offered 49/28 day offer, their coffers would be overflowing. Are they dumb to leave money on the table? Every additional call on the network has associated operational costs, and they are definitely not zero.

dragonmonk
March 29, 2018 1:39 am 1:39 AM

Ha use it costs more than 49/month/user to build and maintain telecom infrastructure.

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