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Reliance Jio INR 49 Plan Assists JioPhone Growth in Rural and Tier II Cities
   Feb 13, 2018 06:12 PM

Reliance Jio’s new plan that costs INR 49 seems to be promising in terms of gaining market share for JioPhone in the feature phone segment. This is applicable mainly to the rural regions as well as Tier II cities. This plan is also expected to impact ARPU since users may switch to a JioPhone with low tariff. Its new monthly tariff plan which is exclusively for JioPhone users will fix its subscriber base growth.

Research reports on Reliance Jio Offering

India Ratings and Research (Ind-Ra) said that feature phones are an attractive deal for rural users as these are economical and useful. According to the agency, an average feature phone user is likely to continue its tariff plan as it is used mainly for calling and therefore the ARPU is typically higher. “Though the market share of smartphones is increasing gradually, feature phones still dominate in tier II, tier III cities and rural areas” added the agency.

The average revenue per user at the upper strata is capped at INR 300-INR 400. However, there is a possibility to improve them at the lower strata through data adoption in the unpenetrated segment. In further statements by the agency, it was mentioned that as the tariff wars spread to this segment to capture a market share, the industry ARPU recovery could become more challenging.

Details of Jio Tariff Plan – INR 49

Jio recharge plan INR 49 offers unlimited voice calls along with 1GB data per day at a validity of 28 days available on JioPhone. Incumbent operators are on the other hand providing just one day data offering of 1GB with zero talk time or only 300MB data with a validity of 28 day.
  
As per the reports, it is expected that Reliance Jio will be adding a large number of users to its subscriber base through its feature phone as the competition is far above the pricing level. The existing smartphone penetration level is lower in semi-urban and rural areas and these are the regions where the new subscriber addition is more likely to happen. The urban areas are highly saturated when compared to these regions.

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