Infocomm’s move to cap free data usage at 1GB a day instead of the earlier 4GB limit will reduce network load and pave the way for a better 4G experience, boosting the Mukesh Ambani-led telco’s chances of holding onto customers after its free offer closes March 31 next year, analysts and industry experts said.
JP Morgan expects Jio to net 100 million users by March end. Morgan Stanley expects Jio to end the January-March period with 90 million customers, but expects the company to have 45 million paying customers going into FY18 when it starts charging from April 2017, assuming a 50% conversion ratio. Jio currently has over 52 milion subscribers.
Reliance Jio’s strategy of more stringent daily data caps should reduce network utilisation and allow users to experience a “higher quality service” and potentially “increase the share of users who continue with the company, post-expiry of the free offer,” Credit Suisse said in a note.
The move to cap daily data, analysts said, would also address recent criticism about Jio’s slowing network speeds and deteriorating customer experience amid disproportionate free data consumption by some.
On Thursday, Mukesh Ambani said that all existing users and those who subscribe to Jio’s services from December 4 will get free voice, data, Jio apps and content for free till March 31. Daily data under the new plan though is capped at 1GB versus the 4GB allowed currently. Voice will be free for life.
JP Morgan expects Jio to net 100 million users by March end. Morgan Stanley expects Jio to end the January-March period with 90 million customers, but expects the company to have 45 million paying customers going into FY18 when it starts charging from April 2017, assuming a 50% conversion ratio. Jio currently has over 52 milion subscribers.
Reliance Jio’s strategy of more stringent daily data caps should reduce network utilisation and allow users to experience a “higher quality service” and potentially “increase the share of users who continue with the company, post-expiry of the free offer,” Credit Suisse said in a note.
The move to cap daily data, analysts said, would also address recent criticism about Jio’s slowing network speeds and deteriorating customer experience amid disproportionate free data consumption by some.
On Thursday, Mukesh Ambani said that all existing users and those who subscribe to Jio’s services from December 4 will get free voice, data, Jio apps and content for free till March 31. Daily data under the new plan though is capped at 1GB versus the 4GB allowed currently. Voice will be free for life.
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I am Azaruddin from Coimbatore.