New Delhi: Even with an announced tariff hike of 40 percent, Reliance Jio would be cheaper by 15-20 percent than other incumbents, analyst firms said on Monday while still waiting for details of the company’s new plans.
Along with other telecom companies, even Jio has said it will raise rates by 40 percent but has not formalized the changes. Jio said that it will be introducing an “all in one” plan from December 6 across multiple price points with unlimited voice and data, which will have 300 per cent more benefits than earlier.
“Similar to incumbents, we think only select packs (of Jio) will have a 40 percent increase but popular ones could have 25-30 percent. We think the incremental 300 per cent benefit which Jio is talking about is by offering more data allowances. In our view that incrementally doesn’t entice users much beyond 1.5 GB,” Bank of America Merril Lynch said in a note.
“Even after these hikes, we believe Jio will continue to be 15-20 percent cheaper than the incumbent operators. If Jio data allowances are not within “fair usage policy” control, then we see upside risks to our capex investments”, it said.
The report also said the tariff hikes announced by Vodafone Idea (VIL) and Bharti Airtel were better than expected, which will be effective from Tuesday. While very low and very high denomination tariffs were hiked by up to 41 per cent, the popular plans saw lesser tariff hikes of 25-30 percent. (IANS)