Reliance Jio Is Expected To Hit 100 Million Subscribers By March 2017: JP MorganA staff member arranges Reliance Jio Infocomm 4G mobile service SIM cards at a store in Mumbai. (INDRANIL MUKHERJEE/AFP/Getty Images)

JP Morgan in an analysis says the 4G offering by the latest player Reliance Jio is gaining traction and will see its subscriber base double by the end of this financial year.

Jio has gathered around 52 million subscribers as of December-end, and the expectation is to hit 100 million subscribers by March 2017, after which the company would start billing commercially.

Speaking about tariffs, the report said that while Jio has released a tariff plan, given that subscribers are not being charged for it, there are some concerns on whether the tariff plans would be adjusted lower when the actual commercial operations are launched in April 2017.

JP Morgan said Jio should seek to maximise average revenue per user, than pricing go for a per-GB data offer. Also, a lot is set to depend on how many of the existing Jio users migrate into "paying" subscribers and at what level of revenues per user.

Given the financial strength of Reliance Industries to back Jio, they could likely play the pricing game for longer. But given that most incumbents are comfortably based on financial metrics, any pricing strategy will likely be matched and thus the market share gains would be limited for RJio.

With inputs from IANS

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber