Skip to main content

Posts

Showing posts with the label Reliance Jio's new mass-connect plan to further hurt incumbents: Analysts

Reliance Jio's new mass-connect plan to further hurt incumbents: Analysts

KOLKATA:  Reliance Jio  Infocomm's new mass-connect Rs 98-a-month 4G plan, seen as a highlight of its second successive cut in effective rates in two weeks, is likely to cause another round of market disruption and more revenue erosion for incumbents Bharti Airtel, Vodafone India and  Idea Cellular , analysts said.  Brokerage  JPMorgan  said  Jio 's Rs 98/month plan - offering 2GB of data with a 28-days validity span — "could really hurt incumbents", as it is aimed squarely "at attracting the next layer of 4G data subscribers".  This plan, the brokerage said, "would cause another round of ARPU (average revenue per user) downgrades in the industry for plans catering to entry-level data subscribers", adding that Jio's strategy in the immediate term appears to be cornering "a mass segment of incumbents' price sensitive voice/non-data subscribers on to its Rs 98/month plan, which is its most affordable 4G plan, in step with its rapid mar...