Regardless of the tariff increase, another key trigger for the company is likely to come from its partnership with Google. Reliance Jio and Google work closely to launch an affordable new 5G smartphone, it is expected to be launched at the end of this year
Telecom Major Reliance Jio has introduced five new prepaid plans with ‘no daily boundaries’ and validity ranging from 15 days to one year. These plans offer data that has not been defeated and free voice calls without limits during the validity period.
Analysts say new plans target customers who tend to hit their daily data limit more often on weekends, given the use of higher data. Simply put, this plan offers more options to customers who have different data usage patterns.
“The introduction of these plans is a step in the right direction, in our view. Adoption of this plan can push 55-108% in revenue / GB versus 1.5GB plan / day Driving Margins,” Analyst in Jefferies India Pvt Ltd said in a report. This report adds that while this premium can be adjusted in the future, pricing premiums have no daily data boundary plan versus plans with daily data boundaries offering ways to increase Arpus and margins. Short ARPU for average income per user.
It should be noted that competitors Bharti Airtel Ltd and Vodafone Idea Ltd have not launched similar plans.
Reliance Jio Infocomm Ltd reported strong income for the March quarter with additional substantial customers assisted by cheaper Jiophone launches in February-end. But given the higher payments for 4G and 5G, and spectrum payments, concerns between investors are that companies must increase tariffs for wireless services to maintain growth momentum.
According to analysts in Jefferies, the launch of a new plan shows that Jio wants to improve the ARPU in the smartphone segment through up-trading rather than tariff increases. Also, relaxation of the daily data limit below the new plan implies that JIO has a surplus network capacity to handle a traffic surge during the weekend, the report said.
Regardless of the tariff increase, another key trigger for the company is likely to come from its partnership with Google. Reliance Jio and Google works closely to launch an affordable new 5G smartphone, which is expected to be launched at the end of this year.
