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Will Reliance Jio’s ‘datagiri’ usher in price war?

Most of the mobilephone subscribers would now be contemplating either to stand in queue to get a Jio connection or expecting that their respective service provider cuts down data and call charges, which is unlikely soon
Reliance Jio

Reliance Industries Limited (RIL) chairman Mukesh Ambani’s 45-minute speech at the company’s annual general meeting in Mumbai on Thursday has sent the value of established players plummeting on fears of an all-out price and data war.

Most of the mobilephone subscribers would now be contemplating either to stand in queue to get a Jio connection or expecting that their respective service provider cuts down data and call charges, which is unlikely soon, after the Ambani’s announcement.

Shares of Idea fell as much as 3.4 per cent on Friday, after slumping 10.5 per cent on Thursday. Airtel descended as much as 1.4 per cent, after the stock fell 6 per cent on Thursday.

Top mobile service operators Bharti Airtel and Idea Cellular lost Rs. 9,800 crore and Rs. 2,450 crore, respectively.

The much anticipated 5G VoLTE service is all set to offer data tarrifs at never before prices and voice call will be completely free.

Increase in mobilephone subscribers from May 2016 to June 2016:

All India

Addressing the audience at the AGM, Ambani said the tariff was based on three pillars. “One, the customer should play for only voice or data; two, data must be affordable; and, three, pricing structure should be simple,” Ambani said.

He announced: “Reliance Jio won’t charge for voice calls, data prices will be “cheapest in the world” and there will be just 10 tariff plans to choose from.”

The Reliance Jio data packs tarrif starts as low as 5 paise per MB adding up to Rs 50 for 1GB, against current rate of Rs 250/GB charged by peers.

The company is providing data packs ranging from Small (S) to XXXL. The small plan starts at Rs 149 for 0.3GB data along with access to 100 SMSes and. The mid-plan comes at Rs 499 for 4GB 4G data and access to unlimited 4G at night. The Large, XL, XXL and XXXL 4G packs are priced at Rs 999, Rs 1,499, Rs 2,499, Rs 3,999 and Rs 4,999, respectively.

Here is a state-wise list of subscribers in the country as per the latest data, released by GSM operator’s body COAI till June 2016:

Upto Kolkata

Upto Karnataka

Upto MP

Upto orrisa

Upto J&K

While top mobile service providers Airtel and Idea are attempting to woo customers with the claim of “network everywhere”, the Jio launch with free call and data at lowest price has already taken customers by storm. What an idea, Jio!

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