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Telecom

Q3 results: As Jio looks beyond price wars, operational metrics will come under pressure.

Jio raised tariffs in December in tandem with the incumbents, diluting its price-warrior branding. This will boost its financial metrics but slowdown its market-share growth. The battle for subscribers will now be about quality of experience, bundled services, and value offered. Here’s what to expect from Jio’s Q3 numbers on Friday.
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rishitejpal
16 Jan 2020 6 Mins Read 1 comments
Mukesh Ambani, RIL chairman and managing director, in New Delhi on September 27, 2017. BCCL
Mukesh Ambani, RIL chairman and managing director, in New Delhi on September 27, 2017.
Call it the evolution of Reliance Jio. The price warrior finally had a change of heart in the last quarter. It took a cue from the incumbents and raised tariffs “to sustain the telecommunications industry”. It even passed on the interconnect usage charge (IUC) to consumers and dropped cheaper plans, as industry tariffs rose by about 40%.
justify the incremental tariff hikes. The consumer propensity to spend is also expected to evolve and will depend on the value and quality of services offered by telcos. The battle lines are drawn once again in telecom. And the fate of telcos will hinge on customer experience, network quality, and the value offered. (Graphics by Mohammad Arshad)
Call it the evolution of Reliance Jio. The price warrior finally had a change of heart in the last quarter. It took a cue from the incumbents and raised tariffs “to sustain the telecommunications industry”. It even passed on the interconnect usage charge (IUC) to consumers and dropped cheaper plans, as industry tariffs rose by about 40%. justify the incremental tariff hikes. The consumer propensity to spend is also expected to evolve and will depend on the value and quality of services offered by telcos. The battle lines are drawn once again in telecom. And the fate of telcos will hinge on customer experience, network quality, and the value offered. (Graphics by Mohammad Arshad)

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