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Price-warrior Jio’s reality check: Telco likely to face pressure on key metrics in Q1 earnings

Jio is likely to post strong subscriber growth in the first quarter but Arpu could slide and profit growth may continue to be under pressure as the telecom disruptor targets rural India. Future growth will hinge on its pricing strategy and content-monetisation plans.
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rishitejpal
19 Jul 2019 5 Mins Read 1 comments
Chairman and managing director of Reliance Industries, Mukesh Ambani, attends the India Mobile Congress in New Delhi, on September 27, 2017. Getty Images
Chairman and managing director of Reliance Industries, Mukesh Ambani, attends the India Mobile Congress in New Delhi, on September 27, 2017.
Telecom’s massive disruptor continues to add subscribers at a rapid clip, closing in on Airtel and Vodafone Idea. But Jio’s manic pace could ease out soon in a saturating market. In the quarter ended March 2019, Reliance Jio was the biggest gainer in net subscribers, according to Telecom Regulatory Authority of India (TRAI) data. It added nearly 27 million
the telecom industry. In an earlier article, we reiterated the need to look beyond customer retention as a motive behind content offerings. So far, all telcos including Jio have been offering various content bundles to protect their turf. With visible green shoots, prudence needs to be the buzzword for telcos. ( Graphics by Mohammad Arshad)
Telecom’s massive disruptor continues to add subscribers at a rapid clip, closing in on Airtel and Vodafone Idea. But Jio’s manic pace could ease out soon in a saturating market. In the quarter ended March 2019, Reliance Jio was the biggest gainer in net subscribers, according to Telecom Regulatory Authority of India (TRAI) data. It added nearly 27 million the telecom industry. In an earlier article, we reiterated the need to look beyond customer retention as a motive behind content offerings. So far, all telcos including Jio have been offering various content bundles to protect their turf. With visible green shoots, prudence needs to be the buzzword for telcos. ( Graphics by Mohammad Arshad)

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