Key Points
Reliance Jio recently unveiled a set of costlier prepaid mobile plans that bundle mega doses of over-the-top (OTT) entertainment benefits, including a premium subscription of Jio Cinema, in a clear bid to grab high-revenue generating customers from rivals Bharti Airtel and Vodafone Idea (Vi)...
Jios latest offerings appear to have already driven cash-strapped Vi to initiate tariff action to ring-fence premium customers, especially amid the latters continuing inability to compete effectively with bigger rivals on the mobile broadband stage...
Jios higher-priced prepaid plans that bundle greater OTT benefits, including Jio Cinema premium, are clearly aimed at increasing ARPU and closing the gap on this score with Airtel, Nitin Soni, senior director (corporates) at global ratings agency, Fitch, told ET...
The move will also create customer stickiness at a time when mobile users are seldom loyal to any particular network, Soni said.. He, though, expects Jios higher-priced prepaid plans to have true material impact on ARPU growth only after its older, lower-priced prepaid plans are discontinued...
The OTT benefits on Jios new 2GB/day plans, in fact, would be more comparable with Airtels 2.5GB/day plans, as per company data, it said.. Jio is providing 12/14 OTTs, including Jio Cinema Premium subscription, for the first time under its new prepaid mobile offerings..
