Reliance Jio, one of India’s leading telecom operators, has recently introduced changes to its base prepaid plan, aiming to bolster its revenue figures. The alteration involves discontinuing the Rs 119 plan and making the Rs 149 plan the new base prepaid option. This move comes as Jio seeks to address its average revenue per user (ARPU) figures and enhance its financial performance.
Challenges with ARPU and Subscriber Base
Jio’s ARPU has been a focal point of concern for the telecom company, and the recent changes are geared towards addressing this challenge. As of Q1 FY24, Jio’s ARPU stood at Rs 180.5. While Jio boasts an impressive subscriber base of over 400 million active users, a significant portion of these users opt for lower-cost recharges or JioPhone plans. These choices contribute to keeping the ARPU figures lower.
The discontinuation of the Rs 119 plan is expected to play a role in improving Jio’s ARPU. This strategy aligns with Jio’s aim to strike a balance between its user base and revenue figures. However, the impact of this change on subscriber additions remains to be seen over time.
Exploring the Rs 149 Plan
As the new base prepaid plan, the Rs 149 option offers customers 1GB of data per day and a validity of 20 days. Alongside these benefits, subscribers also gain access to JioTV, JioCinema, and JioCloud services. The plan includes unlimited voice calling and permits users to send 100 SMS per day.
It’s important to note that while users receive JioCinema with this plan, it doesn’t include JioCinema Premium. This means that subscribers won’t have access to the premium features of the streaming service with the Rs 149 plan.
5G Welcome Offer and Alternatives
One notable aspect of the recent changes is the exclusion of the 5G Welcome Offer from the Rs 149 plan. Customers interested in availing the 5G Welcome Offer, which provides unlimited 5G data, will need to opt for the Rs 239 plan or higher.
This shift reflects Jio’s strategic approach to introducing its 5G services and monetizing them effectively.
Reliance Jio’s decision to modify its base prepaid plan is a strategic move aimed at improving its revenue performance and addressing the challenge of low ARPU figures. By introducing the Rs 149 plan as the new base option, Jio aims to strike a balance between offering competitive plans to its users and achieving sustainable revenue growth. As the telecom industry continues to evolve, Jio’s approach will play a crucial role in shaping its future financial success while catering to the diverse needs of its vast subscriber base.
