Reliance Jio focus to raise consumer market share continues after the company launched more aggressive postpaid wireless plans that were cheaper than incumbent offerings. This comes after the reduction in FTTH broadband tariffs late last month. While RIL’s prepaid offering has been one of the most value-for-money offerings, postpaid and broadband have been areas where customer acquisition has been slower than anticipated.
Jio's postpaid plan offers more value as its offering, with bundled OTT content even (at the lowest starting tariffs of Rs399/month), unlimited calling, along with higher data usage and additional benefits vs competition.
Jio's new tariff are at a 37% discount to Airtel's Rs499 plan. However, with the existing postpaid plan getting limited traction, we believe stickiness of postpaid and offers by competition to Jio's announcement still need to watched. India's postpaid ARPU as of Mar-20 was Rs244/month (~3x of pre-paid) with ~5% of the customer base on postpaid.
