Reliance Jio, a relatively new telecom provider that is responsible for shaking and transforming the telecom industry in India has overtaken Vodafone to become the second largest telecom operator in the country. This comes right after the company doubled its total subscriber base in the last couple of months while adding about 10 times more subscribers than rest of the competition in July. According to a recent report, the reason for this growth is likely because of its aggressive pricing to take on the competition. Another major factor for the growth is its smart feature phone JioPhone and its latest version the JioPhone 2.
The cheap pricing of the JioPhone devices along with special low-cost plans that are exclusively available for the JioPhone users has attracted a number of users. A bulk of these users come from rural India. According to a report by Financial Express, the data released by TRAI pointed out that Jio managed to overtake both Vodafone and Idea Cellular in a matter of one month because of the increase in subscribers. The report also pointed out that since Vodafone and Idea have merged together now, this makes them the largest telecom entity in the country while pushing Bharti Airtel and Reliance Jio to the second and third spot, respectively.
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The report also pointed out that other factors that are pulling new subscribers to Jio include the move where Reliance reduced the price of its original JioPhone to Rs 501 from the previous Re 1,500 as part of an exchange offer on older feature phones. This has increased its growth rate from 6-7 million per month to 10-12 million according to the latest data.
Talking to the industry analysts, the report added that it is likely that the number of subscribers for Reliance Jio is expected to surge in coming months as more users make use of the Rs 501 exchange offer.