Reliance Jio Increases Prices of Popular Prepaid and Postpaid Plans: New Tariffs Announced
Reliance Jio Increases Prices of Popular Prepaid and Postpaid Plans: New Tariffs Announced
Reliance Jio has recently introduced a significant hike in its tariffs, which will come into effect on July 3, 2024. This increase spans across various plans including monthly, daily, and annual packages. The new pricing structure reflects a comprehensive adjustment, aiming to sustain the telecom giant's revenue growth and support the ongoing investment in 5G and AI technologies.
New Plans and Pricing
The updated tariff structure includes a range of unlimited plans, offering various data and calling benefits. For instance, the previously priced Rs 155 plan, providing 2 GB data along with unlimited voice calling, will now cost Rs 189, marking a 22% increase. Similar hikes have been applied to other plans, such as the Rs 209 and Rs 399 packages, which have seen more than a 12% rise.
This substantial tariff increase by Jio, ranging from 12% to 25%, is the first major adjustment since December 2021. The last industry-wide price rise occurred then, with an average increase of 20%. Jio's competitors, Bharti Airtel and Vodafone Idea, may follow suit, potentially triggering a broader industry-wide adjustment.
Jio's move is seen as a strategic step to enhance its monthly average revenue per user (Arpu), which has been stagnating at Rs 181.7 for the past three quarters. The latest price adjustments are expected to provide a much-needed boost to the company's revenue.
Specifics of the New Tariffs
In the prepaid segment, Jio's cheapest monthly plan has increased from Rs 155 to Rs 189. Other plans have also seen notable hikes:
Rs 209 plan: Increased by 12%
Rs 399 plan: Increased by 12%
In the postpaid segment, the Rs 299 and Rs 399 plans have been increased to Rs 349 and Rs 449, respectively, reflecting hikes of 16.7% and 12.53%.
Strategic and Technological Implications
Akash M Ambani, Chairman of Reliance Jio Infocomm, stated, "The introduction of new plans is a step in the direction of furthering industry innovation and driving sustainable growth through investments in 5G and AI technology. Ubiquitous, high-quality, affordable internet is the backbone of Digital India and Jio takes pride in contributing to this. Jio will always put our country and customers first and will continue to invest in India."
This tariff increase aligns with the predictions of many analysts and is expected to pave the way for further increments in the next 12-18 months. Bharti Airtel and Vodafone Idea have long advocated for higher tariffs to ensure the financial health of the telecom sector.
Impact on 5G Adoption
As of April 2024, Jio held a 40.48% share of wireless subscribers in India, with 472.42 million connections on its network. The tariff increase is anticipated to impact the adoption rate of 5G services. Jio had 108 million 5G customers by the end of the first quarter of 2024-25, while Airtel had 72 million.
Interestingly, users of JioBharat and JioPhones will continue to enjoy existing tariffs. This is part of Jio's strategy to empower the 250 million feature phone users in India, who remain on 2G networks, by providing them with affordable 4G-enabled devices.
Conclusion
The recent tariff hikes by Reliance Jio mark a significant shift in the telecom industry, setting a precedent that might be followed by other major players. As Jio continues to invest in cutting-edge technologies like 5G and AI, the new pricing structure aims to balance revenue growth with sustainable customer satisfaction.
Reference
- Business Today - Reliance Jio increases prices of popular prepaid, postpaid plans
- Hindustan Times - Reliance Jio announces tariff hike from July 3, announces new unlimited 5G data plans
- Times of India - Reliance Jio announces mobile tariff hike, full list of new plans and prices
- Business Standard - Reliance Jio announces hike in tariffs for mobile plans by upto 25%
Check out the above links for more details