In an analysis carried out by JP Morgan Chase & Co., a multinational banking and financial services holding company, it found that RIL Chief Mukesh Ambani’s new telecom venture, Reliance Jio Infocomm Ltd., that has seen a great number of subscribers in a short period of time will have it double by the end of 2017 which is 100 million.
Reliance Jio was launched in September of 2016, since then it became successful in attracting 52 million people as of December end. The free tariff plan was supposed to be till December 31, 2016, which has been further pushed to March 31, 2017 in December end, to allow more people to connect to the network in this span of time.
This technique surely has affected other companies who had no choice but to decrease their price for the plans on calling and internet usage which is free in Jio. The plans that Jio will introduce from April are yet to be known and how will people react to them is a question. The anticipation is that the company might encounter some traction while in the beginning of introductions of tariff. The report writes that – To that extent, the initial price scheme launched by Jio was a positive one as the effective pack started at Rs 499 per month, although there is a lower priced plan of Rs 149 per month. Jio should seek to maximize average revenue per user, than pricing go for a per-GB data offer.
The company is yet again planning to invest an amount of Rs. 30,000 crore for increasing the coverage and network capacity, making it a total investment of Rs. 1.9 lakh crore in the venture. Reliance Jio said “In view of the unprecedented customer response to Reliance Jio’s services as well as address the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity”.