Jio mobile first offered call/data free to attract customers and then came the plan of 309 for 3 months, which later became Rs 399 for three months (actually 84 days as is revealed when you actually take the plan). As expected, Jio raised its call/data rates from Rs 399 for 90 days to 459 for 70 days, leaving its entire customer base of approximately 13 crore in a lurch.
There are approximately 120 crore mobile users in the country today, according to TRAI. “The number of telephone subscribers in India increased from 1,198.89 million at the end of April 2017 to 1,204.98 million at the end of May 2017, thereby showing a monthly growth rate of 0.51 per cent,” according to the Telecom Regulatory Authority of India in a widely published statement.
After its launch, Jio crossed five crore subscriber mark in 83 days. Subsequently, it crossed 100 million subscribers on 22 February 2017 and this month, it reached around 13 crore (130 million) subscribers.
With such a large customer base, the move is expected to raise the company profits by more than 20 percent.
However, Credit Suisse feels that the rates are still lower than average smart phone customer. This is disputable though. What is the basis for this claim, Suisse has yet to satisfactorily answer it.
Interestingly, the entire Public relations machinery of Jio is engaged in telling the customers that the rise is justified and the call/rates of Jio are still lower than other telecom companies.
You must remember, Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd, and this company has one of the biggest network in the country today. It controls channels like CNBC, CNN News 18, IBN, New 18, Colours, MTV, Nick, History, besides film business Via Comm. It also has interest in brands catering to a wide range of interests and services, including news and entertainment, markets and finance, online shopping and ticketing, and mobile phone services and applications, through websites like MoneyControl, Firstpost, Bookmyshow, Yatra, Forbes India etc.
Reliance Jio made its service dearer by about 15 percent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day.
The company restructured its various schemes by reducing their validity period.
After Jio announced the increase, Airtel shares witnessed an eight-year high and other companies see this as price levelling.
RIL market cap soared to Rs 5,94,078.91 which is just Rs 5,921 crore short of Rs 6 lakh crore mark for the first time ever. According to Forbes, Reliance Industries Chairman and Managing Director Mukesh Ambani recorded a nearly $1.1 billion increase in net worth.