Author Topic: Why Airtel, Vodafone, Idea Not Reducing Prices to Counter Jio ?  (Read 233 times)

wiredlife

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Why Airtel, Vodafone, Idea Not Reducing Prices to Counter Jio ?
« on: September 15, 2016, 11:29:55 PM »
Jio's 90 days offer of unlimited free data / mins is likely to hurt incumbents usage for the next 2 to 3 quarters. A-Vo-Id Telecom Operators are not ready to jump the gun (like was done during DoCoMo’s promotional 1p/sec) & announce a big cut. Any meaningful cut will wait for clarity on Jio's tariff plans as trying to counter Jio today will only hurt them.

Jio SIM is free of cost and comes with 90 days of free unlimited data and voice. Jio is still in test phase and commercial launch in our view is likely in 1-2 months. With their existing revenue base, it will not only hurt incumbents but is also unlikely to offset their usage leaking to Jio - any cut pales in comparison to free access. Besides, history has shown that it is difficult to raise prices given the market dynamics.