Home » Telecom » Reliance Jio Subscribers Acquisition Rate Plunges by 50%, May Miss Dec Target of 100 Mln Users
Last updated: November 22, 2016 at 15:29 pm

Reliance Jio Subscribers Acquisition Rate Plunges by 50%, May Miss Dec Target of 100 Mln Users

Reliance Jio SIM Cards

If we believe a report by research & brokerage firm Motilal Oswal, then Reliance Jio may be in deep trouble right now. Demonetization move by PM Modi has wreaked havoc in Jio’s expansion plan as they growth rate has plunged by 50% as a result of currency ban.

The report clearly states that there is no way that Jio can convince 100 million users to use their services by December 31, 2016; which means that a major promise and assurance from Mukesh Ambani would be broken. And this also means that stock-investors may ditch Reliance’s shares in coming days.

Disappointing Growth Of Jio Due To Currency Ban?

As per the researchers, there has been a sharp fall in number of footfalls in Reliance outlets, due to demonetization move. Right now, subscriber run rate (the growth of new users) has dropped by 50%, compared to pre-8/11 period, due to which, there is are 35-40 million users of Jio right now.

However, only currency ban cannot be attributed to the slow growth.

As per Motilal Oswal report, deteriorating speed reported by various users of Jio and poor customer service experience is also attributing to slow growth.

The report said, “Channel checks suggest Jio outlets have started receiving complaints that data speeds are down by 70-80% over three months”

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As per the findings of the report, Jio’s subscriber base can reduce further after December 31, when the Welcome Offer cease to exist.

However, the report also predicts that in case Jio is not able to acquire 100 million customers by December 31, 2016, then the Welcome Offer can be extended for few more weeks/months.

But Morgan Stanley Is Optimistic On Jio

Another set of reports coming in from rival research firm Morgan Stanley is bullish on Jio’s performance. As per their own findings, 94% of incremental data volumes in September Quarter was triggered by Jio customers.

In fact, this report states that even if Welcome Offer is ended, the tariff plans from Jio would be 35% lower than their competitors, which means that more users would be added to their platform, despite a slight dip currently.

Interestingly, just like Motilal Oswal, Morgan Stanley too believes that Jio will extend their Welcome Offer beyond December 31, 2016. Besides, there is another prediction which both the brokerage houses have speculated: Reliance Jio may introduce new price plans in the range of Rs 200-300 for targeting mass-market reach.

In addition to this, Reliance Jio has also started Home Delivery of SIMs, which should definitely help them increase the acquisition rate. It is also said that Jio may even extend their Free Welcome Offer till March 2017, so as to garner as many subscribers as possible!

RELATED:  Reliance Jio Has the Slowest 4G Speed in India, Reports TRAI & Ookla; Jio Offers Explanation!

We will keep you updated as we receive more updates from Reliance Jio.

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