Jio Happy New Year Offer: Experts discuss impact on incumbents

Prakash Diwan, Altamount Capital Management is more impressed with the announcement of JioMoney Merchant application and the aim of bringing around 10 million small retailers and merchants under the net.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Business

Dec 01, 2016, 03.56 PM | Source: CNBC-TV18

Jio Happy New Year Offer: Experts discuss impact on incumbents

Prakash Diwan, Altamount Capital Management is more impressed with the announcement of JioMoney Merchant application and the aim of bringing around 10 million small retailers and merchants under the net.

Like this story, share it with millions of investors on M3

Jio Happy New Year Offer: Experts discuss impact on incumbents

Prakash Diwan, Altamount Capital Management is more impressed with the announcement of JioMoney Merchant application and the aim of bringing around 10 million small retailers and merchants under the net.

Post Your Comments

Share Cancel

| 1 Comments

Prakash Diwan (more)

Market Expert, prakashdiwan.in | Capital Expertise: Equity - Fundamental

Starting December 4 every Reliance Jio user will get data, voice, video and a bouquet of other Jio applications fully free up to March 31, 2017, announced Mukesh Ambani, Chairman and Managing Director of  Reliance Industries while addressing stakeholders via a live broadcast on Thursday.

The scheme called "Jio Happy New Year offer" will cover new as well as existing customers.

Reacting to the news, SP Tulsian of sptulsian.com said it is going to be tough for the other telecom incumbents because when the free data and voice was offered  till end of December, the incumbents had started selling their various assets to meet costs but now with further postponement of the offer from Reliance Jio, what assets would they have to sell.

According to Tulsian, this new move could also be a bit negative for Reliance Industries since there was an expectation that revenues from RJio would start flowing in from January 2017.

There is also the fear that more litigations would be filed by incumbents, which start questioning the extension of the scheme.

According to TV Ramachandran, President, Broad Band India Forum says one could see more consolidation in the space, which would be the health for the overall sector and customer would be the biggest beneficiary.

Prakash Diwan, Altamount Capital Management is more impressed with the announcement of JioMoney Merchant application and the aim of bringing around 10 million small retailers and merchants under the net. There is huge potential to grow in this space, he says.

Diwan says it would now put even more pressure on spends by incumbents. Tulsian too agrees, saying they are already bleeding, so an increase in ad spends would be difficult for them.

However, if the incumbents focus all their energy on improving customer service and satisfaction they would benefit with loyal customers sticking with them.

Naveen Kulkarni, Co-Head, Research, PhillipCapital said accessing the price damage for other incumbents would be difficult as of now but do not see a huge hit on ARPUs as such.

He said, so far for Jio, free voice did not gel with free data because of problems in points of interconnect. So customers are unlikely to shift to Jio unless that service is on track.

Incumbents may have already anticipated an extension of unlimited data usage plan and may already be underway to try retaining their customers, says Jaideep Ghosh, Partner, Telecom, KPMG. Incumbents will be adequately prepared

Ghosh says such offers will not only help Jio but also subscribers as competition becomes fierce.

Even though Jio's customer base rises, the loyalty remains low, says Ramachandran. Talks of touching 150 million user base is pointless.

The average Indian consumer is very smart, he or she will only use the service which is the cheapest. What matters most is the usage on an average per customer, says Ramachandran.

(Disclosure: RIL, which owns Reliance Jio, also owns Network18 and moneycontrol.com).

1 2 3
Buy, Hold, Sell ? Hear it first on M3
Jio Happy New Year Offer: Experts discuss impact on incumbents

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login