Reliance Jio may lose 50 million subscribers post April, here's why

Reliance Jio may lose 50 million subscribers post April, here's why

 





Mukesh Ambani said Jio will start charging subscribers from April 1, but with sharp discounts for a year for ... Read More

MUMBAI | NEW DELHI | KOLKATA: For the 100 million-plus consumers, lured by Reliance Jio's disruptive Welcome and Happy New Year free offers in six months, the party has finally ended. Starting April, they will have to choose to stay or leave the Jio network, which has lined up easy and attractive entry points.

Reliance Jio services: 4 things that have changed & have not

Reliance Jio services: 4 things that have changed & have not
Changed: Services go paid starting April 1, 2017
Changed: Happy New Year plan to 'change' to Jio Prime
Changed: Existing users too need to enroll
Changed: Prime is only for existing customers
Unchanged: Voice calls remain free
Unchanged: Roaming remains free
Unchanged: 1GB data limit per day
Unchanged: Bouquet of free services

Reliance Jio services: 4 things that have changed & have not

Come April 1, and Reliance Jio services will no longer be free. While this is the biggest change among the slew of announcements made by Reliance Jio chairman Mukesh Ambani at an event in Mumbai today, there are others too.

Wonder what all has changed for Jio customers and what remains the same? Here are 4 things that have changed and that have not ...

Changed: Services go paid starting April 1, 2017

The days of 'free services' on Reliance Jio's network are set to get over. Come April 1 2017, and the company's data services will go paid.

Changed: Happy New Year plan to 'change' to Jio Prime

Reliance Jio has announced a new membership plan called Jio Prime. The membership fees for Jio Prime is Rs 99 per year. Jio Prime Members can continue to enjoy the benefits of the company's 'Happy New Year' plan at an introductory price of Rs 303 per month. Prime users can continue to enjoy these 'unlimited benefits' until March 31, 2018.

Changed: Existing users too need to enroll

Unlike the 'Happy New Year' offer, where all the users of the inaugural offer (Welcome offer) were automatically moved to the new offer, users here need to subscribe to the new plan. This means that all existing users of Reliance Jio need to subscribe to Jio Prime. The last date of enrollment is March 31, 2017.

Changed: Prime is only for existing customers

The Jio Prime scheme is only for the company's existing customers, unlike other plans where the benefits largely extended to all those who came on board the Jio network. "This is a limited time opportunity that we are launching only for our existing customers," said Mukesh Ambani.

Unchanged: Voice calls remain free

As announced during the launch of the Jio services in September 2016, the voice calls (domestic) made to any network continue to remain free.

Unchanged: Roaming remains free

There will also be no roaming charges on Reliance Jio network.

Unchanged: 1GB data limit per day

The daily FUP limit of 1GB data for users too stays. Post 1GB, users can browse unlimited data at 128 kbps.

Unchanged: Bouquet of free services

Chairman Ambani also said that Prime users will continue to enjoy all 'media services unlimited' till March 31 2018. These bouquet of services remains same, as now, and include JioTV, JioMusic, JioMags, Jio Cinema and JioXpressNews.

Subscribers choosing Jio Prime will pay a one-time fee of Rs 99 and Rs 303 a month for services which were completely free. A cross section of phone users ET spoke to suggested many would like to wait and see the quality and speed of data before switching alliance.

Shovon Dasgupta, a retired general manager at a PSU in Kolkata said he will join Jio Prime but will be on the lookout for any lapse in its services. Dasgupta makes his calls from Vodafone and used his Jio sim for surfing data.

"I will go for Jio Prime since its price point is better than competitors and do not mind paying the charges, but if the quality deteriorates, then I go back to Vodafone," said the 69 year old.

Mukesh Ambani, chairman of Reliance Industries, on Tuesday said Jio will start charging subscribers from April 1, but with sharp discounts for a year for its existing users and those who subscribe by the end of March.

"I would love to continue with Jio at the price points mentioned for Jio Prime, provided the service improves before March 31. If it stays like it is right now, I'd rather pay a few hundred rupees more for a reliable network," said Shivam Lakhanpal, a 27-year-old social media marketer from Gurgaon.

From April 1 till March 31, 2018, Jio's current users and those who come on board between March 1 and March 31will continue to get 1 GB of data a day plus all of Jio's apps for Rs 303 a month and a one-time charge of Rs 99.

Market leader Bharti Airtel offers unlimited calling plus 1GB of 4G data for Rs 345 for 28 days and 30 GB of data for 90 days for Rs 1,495. For Rs 349, No. 2 telco Vodafone offers unlimited calling and 50 MB of 3G or 1GB of 4G data for 28 days.

"As a heavy data user, I'm particularly excited about Jio Prime, which looks like real value for money. What's even more assuring is that 'Prime' is a prepaid offer, which would ideally help a user control data consumption more effectively, also reducing the risk of inflated bills that, typically, happen in a postpaid scenario," said Shantanabha Das, a 32-year old professor in a government college in West Bengal.

Das is open to "switching full time to Jio" if the network coverage stabilises in coming months, though he said Airtel, Vodafone and Idea would be compelled to match Jio's rates to retain customers.

"If Vodafone matches Jio's Prime rates in the near future, leaving them will be a tough choice for me as their voice quality is definitely superior at present," he said. Consumer stickiness changes when free offers are withdrawn and analysts expect a 50% erosion of Jio's user base.

"There will be commoditisation of the brand now. India is not a data savvy country yet and giving extra data will not work," said brand consultant Harish Bijoor. Consumer becomes price conscious if he is using data for personal reasons like entertainment and is not paid by his office for professional cause, Bijoor adds.

"Some will change from Jio since the 'free' concept plays an integral role in consumers across the world. The moment you have to pay for it, you will feel the pressure to note the offers by incumbents," noted Santosh Desai MD of Futurebrands India.
Top CommentAnup Shetty, 11 days ago
What a rotten article is this? The title is supposed to explain why Jio would lose 50mn subscribers? Rather it has given opinions of individual users and many of them want to stay with Jio. The autho... Read More

"I used Jio because services were available for free. But I would choose an operator that keeps me connected even when I go to remote villages and offers just sufficient data," said Tulika Mazumdar, a 28-year old engineer based in Delhi. Low income group with data usage lesser than Jio's 1GB limit a day will still be attractive. So, when Ambani said he will match any competitive offer and give 20% more data, it may not impact them. "I don't use Internet much, so I will not want to pay Rs 303 just for unlimited voice calling," said Suman Dubey, a 31-year old home maker from Mumbai.

But for Dibyendu Sinha, 35-year-old software engineer in Kolkata, Jio Prime and the 20% additional data makes sense. Sinha uses at least 700 MB data a day and for him, the continuation of the freebies is worth it.

 

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