Demonetization + Jio to impact Airtel, Vodafone Idea

jio-impact-on-airtel-vodafone-ideaDespite some respite from being allowed to accept old Rs 500 / 1,000 notes for a brief period, the two big events, i.e. demonetization and full quarter of Jio’s free services, are likely to result in a sharp sequential revenue decline. Pressure from Jio’s free launch offers is likely to be felt on three fronts – data volumes (as industry’s paid volumes take an expected knock), data pricing (as the incumbents try to hold on to data volumes) and voice pricing (initial impact of bundled offerings in line with Jio’s announced pricing construct + step-up in aggression on pure voice plans)

Jio’s free offers have resulted in a sharp (more…)

Jio’s 4G Plan Pricing to Mislead Airtel, Vodafone, Idea

Jio Commercial Plans MisleadingReliance Jio announced it has filed tariff plans with TRAI. These would be applicable from 1st Jan-17, post-expiry of the free service offer, renamed as Jio Welcome Offer . Akash Ambani appears to have mastered the lessons of Chinese military strategist Sun Tzu’s The Art of War and has hit Airtel, Vodafone and Idea where it matters most – Voice Revenues which account for 75% of their Billing.

We do not think Jio’s plans would have a significant impact on mass mobile broadband data market with ARPU of Rs200 400, because (as per Jio media release), there are no monthly packs (more…)