Source: Deccan Chronicle
Reliance Jio announced the introduction of low-priced (Rs. 199) postpaid plans that is expected to lead a further decline in the profitability of the incumbents. The incumbents have to revise their postpaid tariff plans to retain their customer base. The new post-paid plan of Reliance Jio offers 25 GB and unlimited voice calls and SMS. It also offers international roaming rates of ₹2/min for voice, ₹2/MB for data and ₹2/SMS. The pre- subscription for these plans have started from May 15. A report shows that incumbents will have to respond to Jio’s plan and cut plan prices. Any 10 per cent cut in postpaid prices will lead to around 2 per cent cut in overall ARPU. Any 10 per cent cut in postpaid prices will lead to 12 per cent/6 per cent EBITDA (Earnings before interest, tax, depreciation and amortization) hits for Idea and Bharti respectively.
Source: The Times Of India