Mobile Subscribers To Pay 4X More: Reliance Jio

The Indian Telecom industry has an approximate 1151.44 million users. with 370 million users Reliance Jio dominates the Indian telecom industry in India. Both Reliance Jio and Vodafone Idea, together, account for little over 60% of the telecom subscriber base in India.

Indian telecom industry is running with lots of turbulence, after Vodafone Idea expressed his willingness to raise its data and price by 7X, it's Reliance Jio which has request authorities to allow the telco to raise its data price minimum 4X.

Reliance Jio price hike request will make it’s subscribers surprise with the Holi gift , if that gets accepted by the authorities, it is needed reason being this sector have encountered losses that seem to be progressing with time.

Vodafone Idea, Airtel, and Reliance Jio have all sought for extensions on the payment of their adjusted gross revenue. Additionally, to make up for incurred losses, all companies have gradually been increasing the prices of their data plans.

Earlier this week, Vodafone Idea requested for the floor price of mobile data to be Rs. 35 per GB. This would be a steep hike as compared to its current prices that range from Rs. 3 – Rs. 4 per GB.

Similarly, Reliance Jio has solicited their own proposed floor price from the TRAI. The hike seems to be less dramatic than Vodafone’s demands, at Rs. 20 per GB.

Jio’s strategy of increasing tariffs is a gradual one, where the company plans to introduce hikes every 6 – 9 months, so as not to shock its customers and ensure maximum retention possible. In the coming days, mobile data will become considerably expensive compared to the past few years.

Airtel’s daily tariff increased from Rs. 0.50 to Rs. 2.22, thus making plans more expensive by Rs. 140 at least and Rs. 190 at most. However, Airtel gave its users the option to hold off on adopting the new plans for a 1 year period.

Vodafone Idea’s plans offer no such buffer period, possibly due to the company’s deep state of crisis, with losses amounting to Rs. 50,000 crore in the previous quarterly.

Both companies’ plans have increased by an estimated 50%, according to Business Insider. On the other hand, Jio’s plans increased by 40% but offered a 3-fold increase in benefits.

However, previous acquisitions and having spent a long time in one of the world’s cheapest data markets are also contributors to the current crisis the former big 2 are in.