Jio 4G Data Prices Likely to Go up Every Few Months Now: Report

The telecom operator likely to reduce the validity period of its 4G data plans.

Over the past few months Jio has increased the prices of its data plans. 

(Photo: The Quint)

Reliance Jio will be making regular price revisions of its data plans from now on. This development has been shared in the form of a report by Goldman Sachs, quoted in a report by Economic Times.

This observation falls in line with how Jio has raised its data tariffs recently, and also cutting down on the validity period of its popular Rs 399 plan.

Also Read: Reliance Jio Revises 4G Tariff Plans, Get 1GB Data for Rs 459 Now

The report from Goldman Sachs (GS) are claiming that the next increase in Jio’s data plans are likely to be announced in January 2018. It further adds that in the coming months, the validity period of the Rs 309 plan could come down to 28 days, which is the regular duration for a month.

The telecom operator, which has recently reported impressive financial results, beating the industry estimates, is on the look out for making more revenue in the coming years.

Also Read: It Took Reliance Jio Three Months Of Commercial Operations To Turn In An Operating Profit

The results also has given the telecom sector fresh hope of recovery, as the freebie period is done and dusted. The resulting changes mean that average revenue per user (or ARPU) for telecom operators could increase in the next 6 to 10 months.

But this spurt in numbers for Jio, according to GS could bring cheer to its biggest competition, Airtel. Now that Jio has started increasing its data prices (and bringing down the validity period also), Airtel and Co can relax and think of stabilising their base, in order to reap the returns from a long-standing situation.

This, and the recent announcement that the interconnectivity charges (IUC) decreased from 14 paise to 6 paise earlier this month.

The competition between Jio and Airtel has seen them investing in bulk, and they’ll continue to do so, which is why you’ve got Vodafone merging with Idea Cellular, making them the largest telecom base in the country by next year.

What Next for Jio?

With over 130 million users on its network, Jio seems to be moving its focus to the next item on its agenda –– broadband. With JioFiber in the pipeline and moving gradually across different parts of the country, that’s the next domain where Jio could roll out its freebies.

Also Read: Reliance JioFiber With Three Months of Free Internet On Its Way

Airtel is the dominant player in this space and they’ve realised the importance of retaining its users, amidst the incoming competition from Jio; the very reason why we’ve seen them bringing down the data prices, or bundling more data at the same price.