90% Jio users opted for Prime, most ready to continue

Around 90 per cent of Reliance Jio users are estimated to have subscribed to its promotional Prime membership plan, as per a report by Bank of America Merill Lynch.

Around 76 per cent are ready to continue using Jio’s service once the promotional period ends, it added.

“80 per cent of users have only one Jio SIM…90 per centare Prime members, 84 per cent claim to have paid Jio the monthly top-up as well,” the report said.

It said 84 per cent of these Jio users have paid monthlytop-up with majority of them choosing Rs 303 or Rs 309 pack.

Jio is offering 1 GB of 4G data per day and unlimited voice calls under Rs 303 and Rs 309 schemes.

“Interestingly, we note that only 5 per cent of surveyedusers are using LYF phones with 40 per cent and 7 per centusing Samsung and iPhone respectively,” the report said.

BoFAML conducted a survey of around 1,000 users mid-Junewho were using Jio as a primary SIM to better understandconsumer perception and usage after end of its free service.

“We note that these users are not a representative of theentire market as this was an online survey targeting mainlymid-to-high end users and these users are predominantly using Jio as primary SIM,” the report said.

As per latest report published by the telecom regulator Trai, Jio had over 112 million subscribers at the end of April.

Around 68 per cent of the surveyed Jio users said thatthey have negotiated with their incumbent telecom operatorsand have got around 10-40 per cent cheaper tariffs.

BofaML said a partial impact may be felt in the upcomingquarter on incumbents but the overall magnitude would not behigh.
 “Bharti Airtel remains our preferred pick in Indiantelcos as we find company best placed to compete with Jio a thigh-end and benefit from market consolidation at the low-end,” the report said.

Around 41 per cent Jio users are still finding it difficult to connect calls with other networks and hope that it will improve gradually.
“We expect Jio to fix this by deploying more sites toimprove its coverage and consider Bharti Infratel to be a key beneficiary from this deployment as it has towers at critical locations. Jio has guided to have 2 lakh sites in next 12 months from current 1.1 lakh sites,” the report said.

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