Starting September 5, “Jio welcome offer” will provide free Jio services to everyone until the end of the year.
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Two-thirds of India’s 1.3 billion population is not online, and Jio want & hopes to capture 100 million users – almost half of India’s current smartphone users – within a year of launch.
“Whenever any late entrant in any industry adopts penetration pricing to capture the market share, it does destabilise the existing players”.
Consumers will not pay low prices for low quality, he pointed out. “At the time of taking the SIM, consumers will have to choose plans – pre-paid or postpaid – and they will continue to get free services till December 31, after which tariff plans opted for will become applicable”, sources said. During its launch yesterday, Ambani had said “Jio will fulfil Digital India dream of Prime Minister Narendra Modi”.
Shares of Bharti Airtel tanked 8.99 per cent to Rs 302 intra-day and ended the day 6.37 per cent lower at Rs 310.70.
As an addition to unlimited calls, messages, and data, Reliance Jio also offers premium access to their apps including My Jio, Jio on Demand, Jio Beats.
Reliance Industries oil & gas group is country’s most profitable group.
The Cellular Operators Association of India (COAI), which is leading the front in a fight with Reliance Jio over inter-connect issues, said competing operators are already matching the price points in most plans the new entrant announced today. While market leader Airtel declined to comment on the presentation, No. 2 ranked Vodafone confirmed the communication. Also, Idea has 4G spectrum in six out of its eight key circles, with net 4G spectrum in 10 circles and 3G+4G coverage at 87 percent of revenue base. An SMS receipt will also be sent to the user.
Jio’s cheapest plan starts at 149 rupees and offers just 0.3 gigabytes of data and the company’s next plan up costs 499 rupees, while a majority of India’s phone users who still have basic phones spend less than 200 rupees a month on telecommunications services.
Jio, a door of opportunity for the country to move from lack of high-speed data to data abundance, comes in two categories. Additionally it would offer unlimited night time LTE data.
“The era of paying for voice calls is ending”, Ambani told the 39th Annual General Meeting of the company, post its listing.
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Reliance Jio will hence result in a high internet penetration, in the upcoming three months.
