Reliance Jio Raises Base Tariff to ₹299, Ends 1GB/day Plans

Reliance Jio has discontinued its entry-level recharge options of 1 GB per day at ₹209 for 22 days and ₹249 for 28 days. The new base tariff for Jio is now ₹299, offering 1.5 GB per day for 28 days. Industry observers expect telecom companies to announce a fresh round of tariff hikes within the next six months. Reliance Jio's average revenue per user (ARPU) is expected to increase 20% to ₹253. Jio Platforms has postponed its planned IPO this year to focus on enhancing revenues, expanding its subscriber base, and growing its digital services.

Reliance Jio has recently discontinued its entry-level recharge plans of 1 GB per day at ₹209 for 22 days and ₹249 for 28 days. The new base tariff for Jio is now ₹299, offering 1.5 GB per day for 28 days. This move is expected to significantly impact Jio's average revenue per user (ARPU) and could lead to a 20% increase from ₹211 to ₹253. The discontinuation of these plans, which were primarily used for online recharges, is likely to push subscribers to the next higher plan, thereby boosting Jio's average revenue [1].

Industry observers anticipate that other telecom companies may follow suit with their own tariff hikes within the next six months. However, Jio's new tariff structure may make it less likely for users to switch to rival networks, given that Airtel and Vodafone Idea's base monthly plans start at ₹299 but offer only 1 GB data per day.

Jio Platforms, a subsidiary of Reliance Industries, has postponed its planned IPO this year to focus on enhancing revenues, expanding its subscriber base, and growing its digital services. The postponement is also attributed to the market regulator SEBI's proposal to modify minimum public offer requirements for large IPOs. The proposal aims to reduce the supply overhang at the time of the IPO and limit holding company discount concerns for RIL [2].

Reliance Industries' share price has seen significant movement, advancing 2.3% intraday to ₹1,413 apiece. The stock has risen 16% in the last 12 months and fallen 5% on a year-to-date basis. The total traded volume so far in the day stood at 2.4 times its 30-day average. Out of the 36 analysts tracking RIL, 33 have a 'buy' rating on the stock, one recommends a 'hold', and two suggest a 'sell' [3].

References:

[1] https://www.ndtvprofit.com/markets/reliance-industries-share-price-gain-2-after-jio-base-tariff-rises
[2] https://www.ndtvprofit.com/markets/reliance-industries-share-price-gain-2-after-jio-base-tariff-rises
[3] https://www.ndtvprofit.com/markets/reliance-industries-share-price-gain-2-after-jio-base-tariff-rises