Reliance Jio’s fair share of popularity comes from its reasonably priced tariffs. The fact that Jio has been offering more in less, is why most people were attracted to the network, plus the unlimited calling and its “fastest” 4G speeds. However, looks like the things are set to change. A report now claims that Jio may raise tariffs by 24 percent in the coming few days.
“We expect Jio to raise tariffs by 24% on its most popular plan (Rs 399) in the next few days, based on the pattern of its recent price hikes. We already expect Jio to take away promotions altogether by end of FY18 and any such move in the near term would be viewed positively by investors,” Goldman Sachs said in an analyst report.
After Jio discontinued last year’s free promotional offers this April, the network provider offered a bunch of paid plans, and the Rs 399 one was the cheapest of the lot which offers free calls and a three month validity. The report suggests that that Reliance Jio will soon be announcing a new tariff plan. Earlier, it had a plan of Rs 309 for three months. ALSO READ: Reliance JioPhone currently available on OLX, prices start at Rs 1,500
“With three months having lapsed since the last price plan change, new plans could be in the offing and we expect Jio to potentially raise effective tariffs by 24 percent/47 percent/95 percent for three months/two months/one month plan in the coming few days, based on the patterns of recent plan adjustments,” the report noted.
There was another rather contrasting report by JM Financial, according to which Jio is expected to swing to profits in third quarter driven by the 57 percent IUC cut to 6 paise/minute from 14 paise earlier, effective October 1.
Reliance Jio recently posted standalone revenue from operations of Rs 6,147 crore for the second quarter. “While reported ARPU (average revenue per unit) appears a bit higher than consensus expectations, management’s commentary looks to suggest the company is targeting ARPU increases in the coming months. Churn rate was reported at 1 per cent with management pointing towards likely improvement in churn in coming quarters,” the report added.
The subscriber base of the company as on September 30,2017 stood at 138.6 million. Net subscriber addition during the quarter was at 15.3 million. Total wireless data traffic during the quarter was at 378 crore GB, and average voice traffic during the quarter at 267 crore minutes per day. ALSO READ: Telecom sector competition to remain intense over 12-18 months: Moody’s