Reliance Jio Extending its Free Services For Next 12-18 Months; Planning for 50% Market Share in India

By Admin 7 years ago

Recently, a prediction came out from leading telecom analysts from US and India. As per reports, Jio has set its eye on capturing more market share, and their role model in this endeavour is Verizon, the leading telecom service provider in the US which controls 50% of the market. Jio is planning the same in India.

The bad news for other telcos, Jio is extending its free services for another 12-18 months i.e upto one and a half year. But, as analysed in the reports, the limiting factor for Jio’s ambitious expansion plan in India is not data price, but hardware. As the 4G market saturates, the availability of 4G handset users has now become the #1 obstacle for Jio.

How will Jio react now? Free 4G handsets, just like in the US, can be a possibility.

Reliance Jio’s Ambitious Plan: 50% Revenues Of Indian Market

By 2020, Jio has set a target of capturing 50% revenue of Indian telecom market, and in order to achieve this, they will keep on pushing free offers in India.

In fact, as per a report created by Morgan Stanley, Jio is aiming to scoop out 15% market share (by subscription) by end of 2017 fiscal year, and this means that more free offers can be launched in the next 12-18 months.

As of now, for December quarter, Airtel commanded 33.1% revenue share in Indian telecom industry, Vodafone had 23.5% share, Idea has 18.7% share.

Limiting Factor for Jio: 4G Users, Not Data Price

Jio had been adding new subscribers at a rate of 600,000 per day for the first 170 days when it added 100 million users.

However, in the next 40 days, the rate of new users dropped significantly, as Jio added 225,000 new users per day, as it added 9 million users to their platform, thereby taking total user base to 109 million.

Now, there are only 134 million 4G users in India. And out of that, 109 million are already on Jio’s network.

This means, that saturation level has already arrived, and data price is no longer a limiting factor for expanding their network.

Every month, 7-9 million new 4G users are added in India, and this is the market which Jio aims to target as of now.

First Appeared on Trak.in

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