Are Airtel, Voda Idea postpaid customers paying more than Reliance Jio users?

Ruben Fields
September 24, 2020

"Telco stocks like Vodafone Idea and Airtel plunged after Reliance Jio released a new postpaid tariff plan", said Sumeet Bagadia, Executive Director, Choice Broking.

Reliance Jio launched new services and plans for its postpaid users.

The move assumes significance as it marks a major tariff offensive by Jio in the postpaid category, where typically average revenue per user (ARPUs) tend to be far higher than the pre-paid segment. Subscribers will also be able to make worldwide calls in the U.S. and UAE free of charge. Lastly, customers get premium call center service and free home delivery and activation.

Reliance Jio's aggressive postpaid offensive with plans that pack-in extensive content portfolio is timed well, and could wrest away market share from Vodafone Idea, analysts said on Wednesday.

Under the worldwide roaming facility, those using Jio's postpaid plans will be able to make calls to India at one rupee from anywhere in the world, Jio added. "It accounts for the need for dependable and high-quality connectivity, limitless premium entertainment, seamless and affordable global roaming, cutting-edge innovative features, and most importantly the customer experience", said Jio Director, Akash Ambani.

"Jio's renewed aggression in the telecom sector may accelerate additions to its subscriber base yet again in the medium term", the analysts at Kotak said, adding that they see the possibility of an upside to their subscriber growth estimates for Jio post the new plans launch. Alongside all of that, the company is promising a hassle-free "no downtime" MNP experience for folks wanting to port their numbers from a competing carrier.

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"JioPostpaid Plus has been intricately designed keeping in mind the needs of every postpaid customer". The second plan is priced at Rs 599 and offers the same entertainment, calling and SMS perks.

The Rs 799 plan has the same benefits regarding subscriptions and calling as above 2 plans but will offer 150GB data every billing cycle and support of upto 200GB data rollover.

Reliance Jio's base post-paid plan, at Rs 399 per month, is similar to what Vodafone Idea is offering and is 20 per cent (Rs 100) cheaper than Airtel's entry-level plan priced at Rs 499. They can also visit the nearest Jio Store or Reliance Digital store to get the SIM. Vodafone also offers three family plans starting at Rs 598 plan and followed by Rs 749 and Rs 999 plans. Customers are being given the facility of 500 GB data rollover in this plan.

- Two additional SIM cards with JioPostpaid Plus family plan.

The Rs 599 postpaid plus plan has the same benefits as Rs 399 plan but it will offer 100GB data instead of 75GB data, and will support 200GB data rollover.

The last and the most expensive plan of Rs 1499 provides you the same benefits as other plans, except this will give you 300GB of data after every billing cycle and support of upto 500GB data rollover.

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