jio

The telecom industry right now is beaming with the news of Reliance Jio Infocomm increasing its tariff plans, thereby indicating early signs of stability in the market, struggling to keep pace with low tariffs introduced by the Mukesh Ambani-owned company.

Jio’s most popular plan of Rs.399 for 84 days will now be available for Rs.459 and for the ones who still want to stick to Rs.399, the validity has been reduced to 70 days. As per the reports published on the company’s website, the changes have already been initiated from 19th October, days after indicating that some rates will be increased to garner higher revenue from subscribers.

In addition to this, as per the analysts, Jio, in order to gain high-end users, is also introducing sachets and offering more data to attract lower spending customers. This states of customers getting double the amount of GBs for its Rs.149 and Rs.509 packs. The Rs.149 pack, which initially did not attract quite a few users, will be now modified by offering the users 4 GB a month. For the ones opting for the Rs.509 pack, they are entitled to 2 GB data instead of 1GB per day. As per Jio, the plan brings high – speed data to subscribers at the lowest industry price of Rs.5.2 per GB.

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This development i.e. the increase in the tariff rate by Jio is can be definitely proven positive for Airtel, Vodafone and Idea as Jio had been disrupting the market since its inception in September 2016, with its lowered data rates and free-for-life voice calls across the country, compelling the older operators to reducer rates to retain users at the cost of severe financial pressure. So, at least these incumbents will have some leeway to increase the rates.

Also, the telecom industry would now witness the cut-throat competition as Airtel and Vodafone have also introduced their Rs.399 schemes, following Jio. Airtel will now offer its 4G pack at Rs.399, with unlimited calls and 1GB data per day for 70 days. Similarly, taking a cue from Jio, Vodafone will be offering 90 GB data and unlimited local and STD calling for a period of 6 months from the date of recharge in its Rs.399 plan.

So, the counter-attack on Jio has been planned and after this, even Idea needs to plan something big. Lastly, as per the experts and analysts of the telecom industry, it is moving towards a structure where the market leader will have a 40% share, followed by 35% and 20%, for the No. 2 and No. 3, respectively and nobody will have any complaint about this. Further, an expert also added that “Increase in profitability is out of the question at the moment because of the way tariffs have gone down”.

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