Reliance Jio, a major player in India’s telecom industry, has made a significant move by discontinuing its popular ₹395 and ₹1,559 unlimited 5G prepaid plans. This decision has left many subscribers concerned about rising costs and its impact on the competitive mobile market.
Discontinued Plans and Subscriber Impact
The ₹395 and ₹1,559 prepaid plans were widely favored for their unlimited 5G data and extended validity periods of 84 and 336 days, respectively. Subscribers valued these plans for heavy data usage and long-term affordability. The sudden discontinuation has sparked concerns among users about the increasing cost of mobile services.
Strategic Tariff Increase
This change comes after Jio announced a substantial tariff increase, effective from July 3, 2024. The move is seen as a strategy to boost Average Revenue Per User (ARPU) and enhance profitability amid fierce market competition. Jio’s base plan will see a 22% hike, rising from ₹155 to ₹189.
Detailed Plan Adjustments
The price hikes extend across various plan categories:
- Base Monthly Plan: The plan offering 2 GB of data over 28 days will increase from ₹155 to ₹189.
- 1 GB Per Day Plan: For 28 days, this plan will rise from ₹209 to ₹249.
- 1.5 GB Daily Data Plan: This will increase from ₹239 to ₹299.
- 2 GB Per Day Plan: This plan will jump from ₹299 to ₹349.
Long-term and Annual Plans
Long-term plans have also seen significant price increases:
- Three-month Plans: These plans with varying daily data limits (1.5GB, 2GB, and 3GB) will become more expensive.
- Annual Plans: The 336-day plan featuring 24GB daily data has seen a substantial price increase. The most notable change is in the annual 365-day plan with 2.5GB daily data, now costing ₹600 more, bringing the price to ₹3,599.
Market Implications
Industry analysts suggest that Jio’s tariff revision is aimed at maintaining its extensive 5G network infrastructure while enhancing revenue. However, the price hikes may trigger a ripple effect in the competitive Indian mobile market, potentially leading other telecom operators to adjust their pricing strategies.
Conclusion
Reliance Jio’s decision to discontinue its popular 5G prepaid plans and implement significant tariff increases marks a strategic shift aimed at boosting revenue. While this move may enhance profitability and support network infrastructure, it raises concerns among subscribers about rising costs and its broader impact on the telecom market.
