Over 90 per cent of Reliance Jio users on Prime, will continue with service: Study

Over 80 per cent Reliance Jio users have only one Jio SIM, while 90 per cent are Prime members, and 84 per cent claim to have paid Jio the monthly top-up as well. Bank of America Merill Lynch conducted a study in India with 1000 Reliance Jio service users.

By: PTI | New Delhi | Updated: June 19, 2017 1:30 pm
Reliance Jio, Reliance Jio users, Reliance Jio subscribers, Reliance Jio networks, Reliance Jio packs, Bharti Airtel, BofaML Around 90 per cent of Reliance Jio user base is estimated to have subscribed to its promotional Prime membership plan, as per a report by Bank of America Merill Lynch.

Around 90 per cent of Reliance Jio user base is estimated to have subscribed to its promotional Prime membership plan, as per a report by Bank of America Merill Lynch. Around 76 percent are ready to continue using Jio’s service once the promotional period ends, it added. “80 per cent of users have only one Jio SIM…90 per cent are Prime members, 84 percent claim to have paid Jio the monthly top-up as well,” the report said.

It said 84 percent of these Jio users have paid monthly top-up with a majority of them choosing Rs 303 or Rs 309 pack. Jio is offering 1 GB of 4G data per day and unlimited voice calls under Rs 303 and Rs 309 schemes. “Interestingly, we note that only 5 percent of surveyed users are using LYF phones with 40 percent and 7 percent using Samsung and iPhone respectively,” the report said.

BoFAML conducted a survey of around 1,000 users mid-June who were using Jio as a primary SIM to better understand consumer perception and usage after an end of its free service.

“We note that these users are not a representative of the entire market as this was an online survey targeting mainly mid-to-high end users and these users are predominantly using Jio as primary SIM,” the report said. As per the latest report published by the telecom regulator Trai, Jio had over 112 million subscribers at the end of April.

Around 68 per cent of the surveyed Jio users said that they have negotiated with their incumbent telecom operators and have got around 10-40 percent cheaper tariffs. BofaML said a partial impact may be felt in the upcoming quarter on incumbents but the overall magnitude would not be high.

“Bharti Airtel remains our preferred pick in Indian telcos as we find company best placed to compete with Jio at high-end and benefit from market consolidation at the low- end,” the report said. Around 41 per cent Jio users are still finding it difficult to connect calls with other networks and hope that it will improve gradually.

“We expect Jio to fix this by deploying more sites to improve its coverage and consider Bharti Infratel to be a key beneficiary from this deployment as it has towers at critical locations. Jio has guided to have 2 lakh sites in next 12 months from current 1.1 lakh sites,” the report said.

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