Welcome Guest Login | Register | Site Map | | Make TelecomTiger my homepage     
Telecom News
Enterprise |  Policy & Regulation |  Mobiles & Tabs |  Corporate |  VAS |  People Movement  |  Technology  |  LTE
Corporate
Reliance Jio's nervousness increases as March 31 approaches: Offers another freebee even as incumbents add 2.27 million new customers in February
Manoj Gairola |  New Delhi |  24 Mar 2017

This is second sweetener within a couple of weeks that Jio has announced to attract customers for its paid services. Under the scheme, customers will get back one-time fee of Rs 99 if they recharge using Jio Money.

When the company came out with 'Buy one get one free offer', telecom expert B K Syngal termed it as nervousness of Jio. Now, when it offered another freebee to attract customers, Syngal said, "This was an indication that nervousness has increased."

"You come out with new freebees when you are desperate for acquiring customers. It is obvious that its response for paid services is not good,"said Syngal.

"Another indication that the company is not gettig good response for its paid services is that the incumbent operators have added 15 millioin new subsribers in last three months. If Jio's 100 million new customers had potential to become paid customers, incumbents should have registered a negative growth," said Syngal.

On March 15, we did a survey of about 20 shops and Jio centres in Delhi. Employees at the Jio Centres told us they were hopeful that about 50-60% of the total subscribers would register for prime membership. The shops not owned by Reliance Jio said that only about 30-40% of the free customers would retain their services once it becomes paid.

Within a couple of days a survey from Bernstein, a wall street research and brokerage firm, emerged saying that 98% of existing susbcribers would pay for Jio services.

The new offer by Jio reimposes trust on our survey.

The reason that Syngal gave for not overshelming response of Jio's report was: “Existing high end customers have inertia and they will shift to a competitor only when there are some compelling reasons such as very low quality of their existing Operator or very high quality of competitor or big price difference.”

“The fact that Jio started offering ‘Buy One Get One Offer’ to its customers within a few days of registration for its paid services shows its desperation. It is a clear sign of nervousness.”

    
Other Stories in this Section
 mail this article    print this article    Show and Post comment
24 Mar 2017(IST)  
ad1
Whitepaper
Maintain Business Continuity with Cisco ASR 9000 nV Technology
It is a virtual chassis solution where a pair of ASR 9000 routers acts as a single device by maintaining a single contr...read more
Simplify Your Network with Cisco ASR 9000 nV Technology
With the new Cisco Network Virtualization (nV) technology in the Cisco ASR 9000 Series Aggregation Services Routers, se...read more
Cisco Small Cell Solution: Reduce Costs, Improve Coverage
It is designed to address the challenge of mobile service coverage and to expand network capacity...read more
Other Stories of the Day