New Delhi: As per the report of the world banking organization Jefferies, the new postpaid offer launched by Reliance Jio will surely attract current users, which in turn will affect the average revenue per user for Idea as well as Bharti. The new postpaid offer launched by Jio includes 25GB of 4G data with unlimited SMS and voice just for Rs 199. Besides, the company is also offering the international roaming rate at Rs 2 per minute and the roaming pack worth Rs 500per day includes unlimited voice, SMS and data. The postpaid service will be available to the users from 15th May onwards.
According to the report by Jefferies, Reliance Jio’s postpaid service offers 50% discount in comparison to the packs offered by the other telecom companies and 60% discount to the postpaid average revenue per users. It’s expected that there will be a sharp decline in the ARPUs for Idea and Bharti due to the discount offered by Reliance Jio. It’s reported by Jefferies that consumers pay three times more than prepaid while using postpaid services and more than 20% of the revenue comes from the postpaid connections.
The world banking organization anticipates that the other telecom companies of India will lower the price of their postpaid services in response to the low price offered by Reliance Jio. The report also suggests that though the lower churn in postpaid users will slow down the shifting, Reliance Jio targets the 40% of the corporate users to enter the market.