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Reliance Jio to unleash price war among telecom operators

Consumers could see their monthly mobile bills coming down significantly as Reliance Jio’s (RJio) disruptive entry into the Indian telecom market with rock-bottom prices is expected to unleash a new round of price war in the industry, analysts on Thursday said.

RJio, which has been testing its network over the last few weeks, on Thursday said its users will not have to pay for voice calls and roaming, while data will be charged as low as one-tenth of the prevailing rates. At present, nearly 70 per cent of industry’s revenue comes from voice, reports PTI.

“This announcement will unleash a price war among telcos, and users can expect cost of data (not voice) going down in the range of 25–35 per cent,” Greyhound Research Chief Analyst and CEO, Sanchit Gogia told PTI.

He added this will further add bottomline pressures on the already struggling telcos that will ultimately be forced to consolidate.

RJio in its test phase has garnered over 1.5 million users and aims to take the number to 100 million “in the shortest possible time”. During his speech at the 42nd AGM of Reliance Industries, Mukesh Ambani said, “Indians can all do ‘Data-giri’, which is an opportunity for every Indian to do unlimited good things, with unlimited data.”

CRISIL Research said that by opting for Reliance Jio plans, mid-to-high end subscribers could see their average monthly mobile bills coming down by 50-60 per cent.



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