The Relaince Jio experience centre which showcased the panoply of Jio's current digital services and upcoming services Fibre to home (SmartHome) and Smart Vehicle. Contrary to investor expectations, Jio believes the Indian telecom market is likely to grow by 50% over five years.
Jio expects voice revenues would decline from current level of $22bn to around $7bn. They expect unique subscribers at around 800m in the medium term and believe around 400m subscribers can afford to pay around Rs 500 on digital services.
Non-prime plans launched recently are currently not in focus as R-Jio wants to ensure Prime subscribers are locked-in for 12 months. Current non-prime plans are largely in line with incumbents and materially different from Prime subscription offer. We believe non-prime plans could be made more attractive effective April 1, which would sustain the pricing pressure.