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#TariffWar Will Continue in The #Indian #Telecoms Industry

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#TariffWar Will Continue in The #Indian #Telecoms Industry

As per the latest report of the Telecom Regulatory Authority of India or TRAI, 11.7 million subscribers have opted for Reliance Jio in July 2018. Thus, the total number of Reliance Jio’s subscriber reaches 227 million. Currently, no other Indian telecom company has been able to add such a huge number of the subscriber.

Vodafone India has added 0.6 million and Bharti Airtel has added 0.31 million subscribers. Previously, Reliance Jio secured the second position among the leading telecom companies in India. However, after the merger of Vodafone India and Idea Cellular, Reliance Jio is now in the third place. Vodafone Idea Ltd is the largest Indian telcos with 443.9 million subscribers and is followed by Bharti Airtel with 369 million subscribers.

Jio has been leading the chart in terms of adding new subscribers for the past couple of months. However, the tariff plan does not change even with the growing number of the subscribers. According to some analytics, Reliance Jio will continue to offer aggressive tariff plans only after the company is able to reach a subscriber base that is equal to its competitors.

In fact, Jio has gone on record that the company’s tariff will always be 20% less than that offered by its competitors. The company is also planning to deploy a similar predatory strategy in the fixed broadband and enterprise markets as well. This will lead to added pressure on the incumbent players. Especially on Vodafone Idea, which is not very strong is the home broadband sector. Jio is investing in laying fiber across the country to differentiate its services on the basis of quality. Airtel, which would want to regain its crown of being the largest Indian service provider, will need to think of some innovative marketing strategies fight Jio. The newly formed Vodafone Idea is particularly vulnerable and will really need to think out-of-the-box strategies to not just survive but also thrive in the Indian market.

Indian telecom market is price-sensitive. Only 10% of the subscribers are post-paid connection users who are loyal to the company. However, the rest 90% of the pre-paid connection users seldom stick to a specific company. Most of these users choose the companies that offer low tariff plans. After mobile number portability was initiated, the number of requests has crossed 391 million.

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