Airtel, Vi may too race against Jio for postpaid offerings: Analyst
By MYBRANDBOOK
Bharti Airtel and Vi are too expected to get in the post paid plans rat race to match Jio’s latest plans
Analysts believe that any major subscriber churn in Airtel’s existing postpaid subscribers is unlikely, given its premium brand positioning and typically lower churn in the segment. The Sunil Mittal-led telecom operator recently changed its broadband plans by matching Jio’s fixed-line broadband plans with unlimited data.
“Bharti Airtel’s effort to convert its prepaid customer base to postpaid may witness challenges with the increased competition from Jio,” financial service company, Credit Suisse said in a note.
Credit Suisse, however, said that Vodafone Idea may witness higher churn in the postpaid segment as the ongoing network integration exercise has caused bad experiences in some key services areas.
Among operators, Vodafone Idea has the highest 43% market share followed by Bharti Airtel at 28%.
Jio’s new plans range from Rs 399 to Rs 1499. Airtel’s post plans start at Rs499, while Vodafone Idea begins from Rs399. Jio's Postpaid plus plans add OTT bundling worth an additional (Rs233) at the starting price of Rs399 per month, Rs100 lower than Bharti and Vodafone Idea comparable plans.
“We expect Bharti and Vi to match Jio's OTT bundling to prevent churn of their postpaid subs rather than a headline price drop. The cost of matching OTT offers is likely to depend on wholesale discounts (we estimate 30-70%) and activation by eligible customers,” J.P Morgan said in a separate note.
“We estimate this could cost Bharti and Vi 1-3% and 3-6% of FY21 EBITDA respectively,” it added.
J.P Morgan stated that Jio’s goal is upgrading its personal 280 million smartphone subscribers to postpaid and better ARPU plans. “This could help nudge the overall market to higher ARPUs and be a positive for the industry.”
Jio at present has lower than 1% of its wi-fi subscriber base on postpaid plans.
Analysts stated that Jio’s new plans come at a 20% low cost to Bharti Airtel, and the postpaid pricing adjusted for OTT bundling seems to supply 50-33% decrease prices as in comparison with pay as you go plans of comparable headline pricing and knowledge limits.
BREAKING NEWS
TECHNO TRENDS
InterGlobe’s Rahul Bhatia and C.P. Gurnani together announce
In a move that is set to transform the AI landscape, Rahul Bhatia, Group M...
Download masked Aadhaar to improve privacy
Download a masked Aadhaar from UIDAI to improve privacy. Select masking w...
Sterlite Technologies' Rs 145 crore claim against BSNL rejecte
An arbitrator has rejected broadband technology company Sterlite Technolog...
ID-REDACT® ensures full compliance with the DPDP Act for Indi
Data Safeguard India Pvt Ltd, a wholly-owned subsidiary of Data Safeguard ...
E-Magazine
TECHNOTAINMENT
Salman Khan trolled for singing with B Praak at Anant Ambani's
To celebrate Mukesh Ambani's youngest son Anant Ambani’s 29th birthday
Disney+ Hotstar wins the Best OTT Platform of the year
Film Critics Guild and Group M Motion Entertainment, in collaboration with
MOVERS & SHAKERS
SISL elevates Ankita Wadhawan as CEO—End User Computing
The IT service provider, SISL in a LinkedIn post announced the elevation
InfoVision appoints Radhika Venkatraman to its Advisory Board
Global digital services company, InfoVision has announced the appointment
OPEN YOUR EYES
INTERVIEWS
AMD Pensando innovation CONTINUES
In 2022, AMD announced its acquisition of Pensando Systems, an addition to
CommScope celebrates its 25 years of legacy in India by contin
A strong brand must also reflect the company values and speak exactly what
HOT PICK
Canon India Introduces 4K Remote PTZ Camera Controller & 4K In
Canon India, a leading company in digital imaging solutions, further solidi
Dell Technologies launches the new consumer and gaming portfol
Dell Technologies has unveiled its newest line of AI-enabled consumer PCs
MAKE IN INDIA BRANDS
VERSA NETWORKS INDIA PVT. LTD.
QUICK HEAL TECHNOLOGIES PVT. Ltd.
SECUREYE SERVICES PVT. LTD.
AGGRESSIVE ELECTRONICS MANUFACTURING SERVICES PVT. LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Technology Icons Of India 2023: Vijay Shekhar Sharma
Vijay Shekhar Sharma is an Indian technology entrepreneur and billiona...
Technology Icons Of India 2023: Lt Gen (Dr.) Rajesh Pant (Retd.)
LT Gen(Dr.) Rajesh Panth (Retd.), National cyber security coordination...
Technology Icons Of India 2023: Harsh Jain
Harsh Jain is an Indian Entrepreneur, the co-founder and CEO of the In...
PARTNER SPEAKERS
PSU
ECIL continues to keep India ahead in the growth of Information Technology and Electronics
ECIL played a very significant role in the training and growth of high...
HPCL is transforming the energy landscape, across the nation and beyond
HPCL is world-class energy company known for caring and delighting the...
STPI encouraging software exports from India
Software Technology Parks of India (STPI) is an S&T organization under...
VIDEOS
Top 25 Brands
Value-Added Distribution
IVALUE INFOSOLUTIONS PVT. LTD.
: iValue Info Solutions is a value added distributor, provides solutio...
ADITYA INFOTECH LTD.
Aditya Infotech Ltd. (AIL) – the technology arm of Aditya Group, is ...
B D SOFTWARE
BD Software is the distributor of IT security solutions in India. The ...
ITFORUM 2024
WIITF 2024
CMO of the Year
WOMEN LEADERSHIP
EMINENT CIO's OF INDIA
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
