Reliance Jio with its free data and voice offers will reach 100 million customer base by March 2017 according to Nitin Soni, Director of Fitch Ratings in an interview with BTVi.
However there is a catch, the customer base would sink by 5 to 10% once the free offering is ended. Reliance Jio is following a sound strategy to increase its customer base. Currently the network has 52-55 million subscribers which would double by March 2017, Soni added.
As long as Jio offers free offers, subscribers would stick to Reliance Jio even if they use Airtel or Idea for the next three months.
When Reliance Jio starts pricing, customer will decide whether to use Jio as secondary connection or as primary one by paying on a monthly basis.
It is expected that Reliance Jio will slew customers with many additional offers in this three months which will retain its customer base and not allowing its premium customer base to flew.
Soni also said that in current situation, telecom industry cannot sustain more than 4 to 5 players with such an intense competetion. Consolidations and acquistions will continue as we see Reliance communications acquiring MTS and merging its entire operations with Aircel. Telenor in talks with Vodafone
Idea cellular which lacks complete 4g spectrum in all the circles, will also face diccicult times with lucrative offers offered by the top players.
Airtel with lot of spectrm on 900Mhz is well placed to compete Jio, Soni said
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