Jio’s new offer won’t impact Bharti Airtel, Vodafone Idea much, say analysts

MUMBAI: Telecom major Reliance Jio has announced Jio Phone 2021 offer which provides for a new phone along with three new plans. It has a two-year plan, a one-year plan, and a special plan for existing users. These offer free calling for two years and 2GB data/month for Rs1,999. Those opting for the one-year plan will have to shell out Rs1,499, while existing JioPhone users can pay Rs749 for 12 months.

Investors should note that the three-year lock-in period for Jio’s existing users of JioPhone is coming to an end. So, analysts believe that the new offer is aimed at retaining Jio’s 2G subscribers base. They, however, don’t see this weighing heavily on rivals Bharti Airtel Ltd and Vodafone Idea Ltd (Vi).

“We don’t foresee this offer to create a significant dent on the 2G consumers of Bharti/VIL. This is prima-facie on account of low-income strata of the target segment to shell-out upfront ₹1,999 as well as lack of handset choice acting as a barrier,” analysts at domestic brokerage house Dolat Capital Market Pvt Ltd said in report.