Indian Telecoms:Jio takes a 30%tariff increase albeit from a low base

New offer of Rs 399 vs. old one of Rs 309.

    Jio has announced new offers as the old ones announced in April are set toexpire. The new plan continues with the same benefits of unlimited data (1GBdaily cap), voice and SMS for three months. The Rs 309 now offers the samebenefits for two months. In addition, Jio has added a few more short durationprepaid plans ( 1-7 days) where the effective cost per/GB is varies from Rs13/GB (7 day validity) to Rs 95/GB ( 1 day). Jio’s plans on prepaid are cheaperthan the comparable products of the incumbents where data packs with 1month validity cost around Rs 100/GB.

    Bharti Project Next would further strengthen its competitive position.

    Bharti recently announced a Rs 20bn investment in “Project Next” which isentirely focused on the front-end customer experience. This includesrevamping 2500 outlets and a focus on digitization of services. The companyhas announced data rollover for its post-paid plans which would aid incompeting against the unlimited plans of Reliance Jio.

    Jio’s new tariffs signal its goal of progressively increasing the data yield.

    Jio had previously indicated that they expect to generate a data yield of INR50/GB