In our view, incumbents like Airtel and Idea are unlikely to raise voice or data tariffs in the interim period till Jio launches (even if there is a delay). At the time these telcos are battling with call-drop issues, we think that if they raise voice tariffs, then it would make it a lot easier for Jio to poach consumers given its network quality would be better initially (given empty network) and possibility of free voice calls being offered by Jio.
On data tariffs, we believe that telcos would continue to marginally reduce their tariffs with an intention of increasing the addressable market and to entice more usage.
