The launch of Reliance Jio services in September 2016 started a price war between the telecom companies. Airtel, Vodafone, BSNL, and Idea have been working hard to counter the effect of services offered by Jio. At present, Reliance is offering all the services free of cost till 31st December 2016. Once the Welcome offer period is over, the customer has to choose a plan on prepaid and postpaid connections.
What is the present situation?
As per guidelines of TRAI no telecom company can offer any promotional discount for more than 90 days. That’s why Reliance Jio has to stop giving any free welcome offers after 5th December 2016. However, those who buy the SIM before the mentioned date will enjoy free data, calls, and messages till 31st December. The customers of Jio are facing 75% call drop rate due to non-availability of interconnections between Jio and other players in the market.
Press release by Reliance Industries
Anshuman Thakur who is the head of strategy and planning at Reliance Jio spoke about the present situation in the press release. He said that the company has informed TRAI about the call drop issue. Due to the lack of interconnection points, Jio is not able to provide the level of services committed to the customers. Without giving them the desired services it will be unfair to charge them anything.
Future plans of Reliance Jio
Reliance Industries told the analysts that the company may extend the welcome offer for another three months. Motilal Oswal analysts wrote in a note published on 21st October that the mass scale-free welcome offer could continue to attract subscriber growth towards the celebrated 100 million mark with RJio’s indicative price tag of Rs.130-140 per GB of 4G data. Reliance Industries’s management said that TRAI only give comments and suggestions for the tariff plans and they do not need the approval to extend the offer. If TRAI wants the telecom company to make changes it can be done in later stages.
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