Reliance JioInfocomm has disturbed the telecom market again. The Rs. 49 minimal cost data plan of Jio is probably going to force other leading telecom operators for example, Bharti Airtel, Vodafone India, and Idea Cellular – to move to more cost-effective VoLTE-based 4G networks to rescue their quickly falling average revenue per user (ARPU).
Under Rs 49 plan, the Jio is putting forth a free voice forever and a GB of information at 4G speeds over a 28-day validity period. This Jio plan is probably going to draw some low-end 2G voice clients crosswise over India from Airtel, Vodafone, and Idea and move towards VoLTE 4G services.
This will increase the money related troubles of officially battling service providers.
According to US-based Brokerage firm JP Morgan, the 2G feature telephone client segment constitutes an incredible 70% of country’s billion or more mobile client base accumulating as much as 50% of segment revenues.
As per telecom regulator data, the ARPU of prepaid clients is Rs 70, of which the voice ARPU of feature telephone clients is in the Rs 50-60 range.
Aside from Jio, a large portion of the telecom organizations have indicated poor numbers in last quarter comes about. Jio’s turn to target a large number of 2G include telephone clients of other service providers would additionally harm the latter’s as of now feeble financials, forcing them to close their 2G, 3G services and launch VoLTE-based 4G networks.