Jio’s Success to Boost the Indian Telecom Market

Posted on: Jul-2017 | By: QY Research | Electrical

Around 90% of Reliance Jio consumers are anticipated to have registered to its Prime membership promotional plan, according to a study by Bank of America Merill Lynch. This study has defiantly revealed about the current growth of the Indian telecom market.

Around 76% are all set to carry on utilizing Jio's service as soon as the promotional period finishes, it added.

"80% of consumers have only one Jio SIM. In addition to this, 90% have Prime membership, 84% also state to have paid Jio the monthly top-up," the report added.
It said 84% of these Jio consumers have paid monthly top-up with greater part of them opting for Rs 309 or Rs 303 pack.

Jio is providing 1 GB of 4G data each day and limitless voice calls underneath Rs 309 and Rs 303 plans. 

"Fascinatingly, we noted that only 5% of surveyed users are utilizing company’s self made LYF phones with 7% and 40% utilizing iPhone and Samsung in that order," the report added further.

BoFAML performed a study of around 1,000 consumers in mid-June who were utilizing Jio as a main SIM to better understand user usage and perception after conclusion of its free of cost service

"We noted that these consumers are not a spokesperson of the whole market since this was an online study aiming mainly mid-to-high end consumers and these consumers are principally using Jio as main SIM," the report stated.

As per the most recent report rolled out by the telecom controller TRAI, Reliance Jio had more than 112 Million users at the end of April.

Around 68% of the studied Jio consumers claimed that they have bargained with their current telecom operators and have got around 10–40% affordable tariffs.
BoFAML claimed a limited impact may be felt in the upcoming quarter on current players but the total magnitude might not be high. 

"Bharti Airtel continues to be favored pick in Indian telecoms as we find the firm best placed to fight with Jio at high-end and can profit from market conditions at the low-end," the report added.

Around 41% Jio consumers are still finding it hard to link calls with different networks and believe that it will enhance eventually.