Business/Economy

Jio readies flurry of discount offers in next 12-18 months

Jio readies flurry of discount offers in next 12-18 months

Reliance with the launch of Jio has already hurt it’s rivals, but the giant does not seem to be relenting anytime soon. The company is again ready to take over the market with new schemes of tariffs and discounts for continuous 12-18 months so that it could complete the target of garnering 15% of the wireless subscriber of India in record time.

This step of Jio has hurt rivals including Bharti Airtel, Idea Cellular, Vodafone, etc., at the same time capped their ARPU (Average Revenue per User) at Rs 300. Since Jio started its services on September 5, currently, it holds 6% of the whole market and has an aim to take it forward to 15%.

But if the wise words of US bank Morgan Stanley are to be considered then, these offers and discounts could put pressure on the ARPU of incumbent operators and could virtually eliminate any future competition threats to the sector.

Jio, in March 2017, set a target to capture almost half of the revenue market share of the industry by 2020-2021. The current statistics of the market share include 33.1% for Airtel, 23.5% for Vodafone India, and 18.7% for Idea Cellular in December 2016.

According to recent statistics, Jio has a subscriber base of 109 million users with 225,000 users joining every day in past 40 days. Another list of statistics and expected statement of profit and loss will be released in the second quarter on July 1 that will actually reveal about the stock market share of the parent company Reliance Industries in the world’s largest telecom startup venture