Achhe Din over for Jio subscriber ? Jio may raise their tariffs by 24%
The happy days for Indian consumers will soon come to an end hints a Goldman Sachs report. The report has stated that “We expect Jio to raise tariffs by 24% on its most popular plan (Rs 399) in the next few days, based on the pattern of its recent price hikes. We already expect Jio to take away promotions altogether by end of FY18 and any such move in the near term would be viewed positively by investors”.
This would mean that the promotional offers would end soon, which are disrupting the market.
“With three months having elapsed since the last price plan change, new plans could be in the offing and we expect Jio to potentially raise effective tariffs by 24 per cent/47 per cent/95 per cent for three months/two months/one month plan in the coming few days, based on the patterns of recent plan adjustments,” quoted the report by Goldman Sachs.
This would mean that the new tariffs would increase by 24% for the three-month plan, 47% increase on two-month plan and 95% percent increase on the one-month plan. The new tariffs will be a significant change and would decrease the number of active users. The current three-month plan is priced at $999 for 90 days, and this surge would increase the price to $1200.
Competitors of Jio namely Vodafone, Airtel, and Idea are coming up with similar plans to compete with Jio’s competitive pricing. The emergence of Jio has had a drastic effect on these competitors. The increase in tariffs in Jio may also lead their competitors to raise their prices.
What do you think will happen? Let you know in the comments.