October 16, 2018

Jio seeks DoT intervention in eSIM service issue

13 May 2018, 09:31 | Edward Lowe

Jio seeks DoT intervention in eSIM service issue

Idea Airtel shares tumble up to 12% on Jio post-paid plan

Reliance Jio Infocomm has continued the tax war to the post-paid section, propelling an arrangement at nearly half the price and with more data than those offered by its opponents. The Reliance Jio company is offering "zero-touch" experience to consumers where all postpaid services will be pre-activated. You all can get this offer if you are looking for something attractive in postpaid plans.

The subscription for the plan will start fromMay 15. Under this plan the ISD Calling is accessible with just 50 paise per minute. At present, the lowest monthly rent of Jio post-paid plan is ₹309. "However, even in a scenario where we assume 10-15 percent of postpaid revenues are from global calls, and worldwide tariffs get cut by 50 percent, the impact on overall revenue of incumbents is likely to be less than 2 percent", A report states. According to industry specialists, Jio's tax of Rs 199 is near the level offered to prepaid endorsers.

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Global roaming that can activate for free in one click is offered at home like rates starting at Rs. 2 per min for voice, Rs 2/MB for data, Rs2/SMS or unlimited services starting at Rs. 500/day (plus taxes).

Customers opting for ₹199 will not require paying any security deposit and they will get unlimited free voice, SMS and 25 GB data at 4G speed.

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Responding to RJio's allegations, Airtel said, "The DoT was duly notified prior to the launch of Apple watch, including product features, network architecture and lawful interception and we have also requested them to carry out a demonstration of the same". "Remain cautious on the sector", the brokerage said. Telecom incumbents can be seen regularly coming up with new recharge plans to flatter customers.

"...running a sensitivity analysis on whether Airtel were to match the Rs 199 tariff, for every 10% of the postpaid subscriber base that downgrades its tariff plan, the impact on Airtel's Indian wireless revenue would be 1 per cent", Morgan Stanley report said.

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