Will Jio’s 4G feature phone be as disruptive as its pricing strategy? | Business Standard News

 If Reliance Jio looks at wooing 100 million customers in the next 12 months to 4G features devices, it would mean its competitors could lose at least 10 per cent of their subscribers. A large number of those migrating are expected to be the low-paying customers of the three incumbents.

The incumbents could see pressure on their revenue share as well, as Reliance Jio starts to charge for services and rationalise its earlier pricing (it revised the Rs 309 pack offer to Rs 399 a month a few days ago). For small operators already reeling under pressure, the revenue share loss could be steeper as their subscriber base mostly consists of customers with low ARPUs.

Yet, Reliance Jio’s strategy isn’t without repercussions for itself. While Ambani may spill the beans on pricing on Friday, analysts peg the price of phones between Rs 500 and Rs 1,500. The cheapest 4G feature phones cost anything between Rs 1,800 and Rs 2,000. That means if Reliance Jio plans to keep the price below this range, it will have to pay the bill.

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Will Jio’s 4G feature phone be as disruptive as its pricing strategy? | Business Standard News.