Reliance Jio offer shows its focus on subscriber addition

Reliance Jio has reduced upfront cost for JioPhone to Rs 699 (no exchange) vs Rs 1,095 (+phone exchange) previously. Recharges are unchanged. The offer is aimed at increasing JioPhone adds from the current c3mn monthly run-rate and highlights the company’s focus on subscribers. With Reliance Jio becoming the largest operator, price hike is a possibility. But given Jio’s ambition and other investments though, we believe sustainable price increases will occur only once the company crosses 40% market share.

JioPhone upfront cost reduced

Under Jio’s festive season offer, the upfront outgo for subscribers is 30%+ below current offer and no phone exchange is required. It is offering JioPhone for an upfront Rs 699 only vs the earlier offers of 1) Rs 1,500 with no exchange and 2) Rs 1,095 with exchange.