Reliance Jio’s new postpaid plan at Rs. 199 per month will be available for subscription from today, May 15. Reliance Jio – which last week announced the new postpaid plan, called “JioPostpaid” – is widely viewed as trigger of intense competition in the telecom sector thanks to its aggressively priced high speed mobile data, say analysts. Reliance Jio has introduced the new postpaid offering with “zero-touch” feature, which equips its subscribers with pre-activated voice, internet (data), SMS and international calling services. “Reliance Jio’s aggressively priced postpaid offering entails a tangible risk to Bharti Airtel‘s earnings outlook,” according to Japanese brokerage Nomura, which maintains a ‘buy’ rating on Bharti Airtel. With its Rs. 199 postpaid plan from May 15, Reliance Jio will offer international calling from 50 paise per minute to Rs. 6 per minute, according to a company statement.
Here are 10 things to know about the new Rs. 199 per month postpaid plan by Jio and increasing competition in the telecom sector:
1. Reliance Jio has announced a Jio Postpaid plan at Rs. 199 per month. This postpaid plan will come with unlimited voice calls and SMSes free of cost for the billing cycle, as well as 25 GBs of mobile data, among other benefits. Users consuming the high speed data of 25 GBs under the plan will be charged Rs. 20 per GB subsequently, according to the Reliance Jio website – jio.com.
2. This plan will be pre-activated for international calls. Subscribers will also be able to activate international roaming with “one click”. Both services – international calling and international roaming – will be offered without any additional monthly charge or security deposit, according to Reliance Jio.
3. Jio Pospaid series of plans are widely expected to trigger already high competition in the telecom sector, say analysts.
4. Reliance Jio has also announced international calling and international roaming tariffs for its prepaid and postpaid customers alike.
5. Reliance Jio has announced international roaming rates “starting at Rs. 2 – 2 – 2 for Voice – Data – SMS”. That means subscribers will be able to make voice calls from Rs. 2 per minute, use data from Rs. 2 per MB, and send SMSes from Rs. 2 per unit on international roaming.
6. The Rs. 2 per unit services – for voice, data and SMS – are offered for international roaming in 33 countries, including the US, the UAE, the UK, Canada, New Zealand and the Netherlands, according to Reliance Jio. In 42 other countries, including Australia, China, Russia, Germany, Kuwait, Myanmar, South Korea and Spain, subscribers will be charged Rs. 10 per minute for calls, Rs. 10 per MB for data and Rs. 10 per unit for SMSes, it noted.
7. For international roaming, Reliance Jio has announced two options for customers. A customer can either choose from “unlimited data and voice packs” or enjoy the connectivity without opting for any pack.
8. Reliance Jio has introduced three new packs international roaming packs: Rs. 575, Rs. 2,875 and Rs. 5,751. The Rs. 575 pack will come with a validity of one day, the Rs. 2,875 pack with seven days and the Rs. 5,751 pack with 30 days. Among other benefits, while the Rs. 575 and Rs. 2,875 packs will come with 250 MBs of high speed data per day, the Rs. 5,751 pack will offer a total of 5 GBs of high speed data on international roaming. All three packs come with unlimited local voice calls (in foreign country) and SMSes. Subscribers, of any of the three packs, will continue to receive mobile data at a reduced speed of 64 Kbps after exhausting the quantity of high speed data prescribed.
9. Bharti Airtel’s ARPU (average revenue per user) and consolidated EBITDA could get dented by up to 8 per cent as it would look to ring-fence its postpaid subscribers, according to Nomura.
10. Last month, Bharti Airtel reported its lowest quarterly profit in nearly 15 years, as a price war in the telecoms sector continued to hurt, while revenue was hit by a regulatory cut in international termination charges. Bharti Airtel’s profit fell 77.8 per cent to Rs. 82.9 crore in the January-March quarter, its lowest since the quarter ended June 2003.