Enjoy Cheap Internet Until Jio Subscriber Base Swells To 400 Million

Must Read

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared...

Let’s go back to 2016 – when Mukesh Ambani had just launched Jio. The world turned upside down, because we had never imagined even in our wildest dreams that the Internet could be free, and to top it all, the speed was 4G! Yes, it was the pre-launch offer. Gradually, Reliance Infocom started charging a nominal price for its services, which was still a lot less than what many other telecom providers used to charge from us earlier.

If you do not live under the rock, you would be well aware of the fierce competition between Reliance Jio the rest of the telecom companies which resulted in a massive price drop in mobile data tariffs. All in all, the community that was being benefitted by the telecom war was us – the consumer base. Even after 2 years since the Reliance Jio made its debut, the competition is only fierce.

However, the ongoing price war that commenced when Mukesh Ambani announced his entry is predicted to last only for one or two more years. Hence, this is the time when Jio needs to make the most of it and double its consumer base.

Advertisements

Jio Userbase: 400 Million Before Prices Escalate

We might be content with the prices that Jio is offering currently, but it is only a few months treat, apparently. Kunal Agrawal, a Hong Kong-based analyst with Bloomberg Intelligence, believes that the party is going to continue, albeit for a limited time period.

“Ambani’s telecom unit will strive to double subscribers to approximately 400 million before they increase the prices. We expect cut-throat pricing and weak average revenue per user to continue over the next one-to-two years, possibly increasing balance sheet leverage for other domestic telecom incumbents,” says Kunal.

215 million People Already A Part of Jio In Two Years

Looking back, Reliance Jio turned out to be the wildest nightmare of the telecom industry. It offered free calls and unlimited data, which were the greatest revenue generating sectors for the other industries. He forced his competitors to either merge with his company or completely quit the industry. The userbase of Reliance Jio has grown to a whopping 215 million, and they have been garnered in a period of only two years. The telecom industry has already reduced into an oligopoly, and according to Kunal’s estimations, Reliance will now target for a dominant market share.

Going by the regulatory data provided by TRAI, Reliance Jio’s market shares have shot up, reaching 18.2% in the month of May this Year. Earlier, the shares were stagnant at a 10%, proving the mettle of this telecom company.

Ambani Wants to Rule the Telecom Industry

Currently, the top goal for Mukesh Ambani is to make Reliance Jio – currently the fourth largest telecom provider – reach numero-uno position by leapfrogging other leading telecom providers. It’s a three horse race now, between Reliance Jio, Bharti Airtel Ltd. and a proposed merger of Vodafone India and Idea Cellular Ltd. This would not be a walk in the park; by the end of May 2018, there were 1.13 million mobile subscribers in India, which will rise to nearly 1.2 billion in the next 2-3 years, estimates Bloomberg.

After the necessary calculations, Reliance Jio needs to account for minimum 33% of the mobile subscribers in India, which translates to 400 million. Although the ARPU of Reliance Jio is estimated to be more than Airtel and Vodafone already, it needs to go through a tough competition and swell its user base before it looks forward to increasing average revenues per user (ARPU) further.

Advertisements

Kunal Agarwal made it very clear that the path is not going to be easy for Mukesh Ambani’s Reliance Jio Infocom. He said that there is a lot of struggle and pain for the firm before the things actually start working out well for them.

All in all, we, the users can continue to enjoy the cheap and unlimited internet data and free voice calls, until Jio decides to raise the prices – putting an end to the price war it has started with the other telecom companies in India.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

From Credit Card Transactions To Online Shopping: New Charges Applicable From Today

As we step into the month of October, just three months away from 2021, the Indian Government...

Why Is Access Dots Touted As A Must Install App for All Android Smartphone Users

Are you an Android user and missing some of the much-needed security features that iOS 14 users have been enjoying now? You...

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his position at the top for...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This