TRAI issued an order stating that Jio can offer free services until Dec 31 to only those customers who enroll by Dec 3 as promotional tariffs can be valid for just 90 days (Jio launched on Sept 5). We note that the order does not prohibit Jio from extending free voice / data beyond Dec 31 for existing customers.
Separately, Jio mentioned during its 2QFY17 results that its call failure rate is >75% on some networks and that the company may extend its period of free services if the interconnection issues with incumbents are not resolved. As per the reports, Jio has stated it will continue offering new offers and tariff plans after Dec 3.
Telcos have been finding it difficult to increase data penetration, with smartphone prices still significantly higher vs feature phones. This was further aggravated in 2QFY17 with the launch of Jio?s free services (from Sept 5)
