Reliance Jio is reaping well with over 72 million subscribers in just four months time, launching on 5 September, 2016. The launch proposal, that offered cheap data services and free calls, will now be extended from 31 March, 2017 to 30 June, 2017.
The six-month trial, which was supposedly scheduled to flag off this year, will be now extended with a new tariff plan. The record-breaking positive response to Reliance Jio which attracted over five crore subscribers in just over 80 days will be enough to keep the 4G VoLTE cellular operator plan going, which might, in turn, lead to over 7.2 crore users in over four months.
The Mukesh Ambani’s operator but in a twist will now be charging Rs 100 for 1GB of 4G internet data, whereas the voice calls will remain free. After the completion of 1GB data, you can use Jio booster plans starting from Rs. 51 for one day to Rs. 301 for 28 days.
Ever since the announcement, the major telcos have competed with their rates to keep up with Jio’s offers. The Indian telecom industry and the major competitors like Bharti Airtel, Idea Cellular, and Vodafone India are hypothetical and mostly hit by the affordable services offered by the new service providers. This mass adoption of Jio has forced the other telcos to aggressively join the race providing their users with offers of lesser rates.
While announcing the December quarter earnings of the parent RIL, Rel Jio Strategy and Planning Head Anshuman Thakur had told media, “By December 31, we had crossed 72.4 million customers and we have lakhs of new customers daily.”
Why Jio taking Rs. 100 for New Plan?
Every other network providers like AirTel, Vodafone, Idea, BSNL, etc are introducing new plans and offers to attract more customers, and most of them have almost leveled their plan prices similar to Reliance Jio 4G Plans, so Jio is more likely to take such step in order to hold their position in the telecom sector.
Moreover, network providers like Airtel and Idea have challenged Reliance Jio Happy New Year offer to be against the TRAI regulations even after TRAI have rejected the challenge and given a clean chit to Reliance Jio. So to be safe with such hurdles they are going to charge a very nominal price of Rs. 100 per month for 3 months.
Chairman Mukesh Ambani had set a 100-million customer target in the shortest possible time while announcing Jio launch in early September of 2016. Anshuman said the point of interconnect has improved drastically but is still 15 percent in some areas. He noted that the figure is three times more than the ideal five percent of call drops.
However, Jio is internally battling the risks of losing its customers, finding a midway between the current, free and nominal charges to the post June charges will be a challenge. Finding a suitable price point which will reflect the market rates and will remain profitable, will remain a mystery for now.
Recently, Reliance Industries invested Rs 30,000 crore to expand its network, taking the total capital invested in Jio to a whopping Rs. 2,01,000 crore.