Airtel, Vodafone, Idea may bear brunt of revenue fall if Reliance Jio's 'Prime' offer finds traction

Devesh

Devesh

Core Member
Airtel, Vodafone and Idea are likely to bear the brunt of a potential 16-17 per cent fall in telecom industry revenues in FY18 if newcomer Reliance Jio’s Rs. 303 per month ‘Prime’ offer finds maximum traction from next month, analysts and sector experts said.

The price-value equation of Jio Prime offer of 28 GB data at 4G speeds with unlimited voice calls to any network is the best in the market, and incumbent carriers would do well to closely match it, they said. Brokerage Kotak Institutional Equities even warned that it would be "foolhardy for incumbents to assume they can command material pricing premium in the marketplace versus Jio".

Kotak estimates "a potential ceteris paribus negative impact of around 16-17 per cent on industry revenue in FY2018" if Jio’s Rs.303/month offer appeals to customers with total monthly wireless spends of Rs. 200 or more. But it noted that the estimated dip in industry revenue could be restricted to 8-10 per cent if there is "ARPU sanity in the sub-Rs.200 segment of the market".

Airtel, Vodafone, Idea may bear brunt of revenue fall if Reliance Jio's 'Prime' offer finds traction, Telecom News, ET Telecom
 
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Aviral Sangal

EntMnt Ambassador
Finest Member
For a reason both of them have hidden direct access to tnc for the packs. They again want to be fool the customers. Moreover with this price war only people in urban areas are benefited. Rural people will still be milked like before.
 
scorpionking76

scorpionking76

EntMnt Knight
Now Jio is planning to hit rural market only time will tell what is in store for market? Also how the telcos are going to use the ROI paid for grabbing spectrum.
 
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Aviral Sangal

EntMnt Ambassador
Finest Member
We need to understand jio got spectrum at dirt cheap prices that's why they are able to offer such competitive pricing. Bidding increases prices and those are paid by us to the government in different forms
 
scorpionking76

scorpionking76

EntMnt Knight
They got pan india license for broadband and now they are offering Jio in that. Hence they are able to provide these.
 
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