JIO UNVEILS NEW PLANS, REDUCES VALIDITY PERIOD

Reliance Jio has reduced validity and effective data offered under a revamped ~309 plan, and has unveiled two new tariff plans, including one with 84 GB of data for 84 days for ~399, according to the company’s website. The move comes after Jio’s Dhan Dhana Dhan offer — launched on April 11 — reached the maximum allowed 90-day promotional period on July 9.

As its promotional offer, Dhan Dhana Dhan, ended on Sunday after 90 days, Reliance Jio has announced new tariff plans with a reduced validity, giving a breather to the telecom sector, as this latest entrant is reducing its discounts.

Dhan Dhana Dhan offer was launched on April 11.

The company says the validity for ~309/509 packages has been reduced to 56 days, from 84 days, while still limiting usage to 1 GB a day.

The Mukesh Ambani-owned firm has also announced two new tariff plans --- ~349 for 56 days, with 20 GB of total usage, and ~399 for 84 days, with 84 GB of total data.

“We consider the move to be directionally positive for Bharti (Airtel) and the sector. We consider this announcement to be largely in line with the market expectation and should help Bharti get back traffic, as discounts are reduced and implied tariffs are raised,” Bank of America Merill Lynch (BofA-ML) said.

Kotak Securities said the average revenue per user (Arpu) range of Jio’s plans now stands at ~122661 versus ~97630 earlier.

“The move is largely on expected lines. While Jio has not raised prices to the base plan levels and continues to run an extra validity and/or extra data allowance promotional across most of its plans, we believe this is a positive move directionally. It provides some breather (not relief ) to the industry that has been reeling under the Jio promotion onslaught…This move should provide the industry an opportunity to stem the free fall in Arpu levels seen in the past three quarters,” said Kotak. The impact of Jio’s coming feature phone disruption, however, needs to be watched for. “We consider the feature phone launch by Jio (remains to be seen if it is announced at RIL’s annual general meeting on July 21) to be the next catalyst for the sector, as it would increase competitive intensity in the market,” BofA-ML said.

The company says the validity for ~309/509 packages has been reduced to 56 days, from 84 days, while still limiting usage to 1GBaday