90% Reliance Jio users opted for Prime membership: BofAML report
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New Delhi: Around 90% 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 (BoFAML). Around 76% are ready to continue using Jio’s service once the promotional period ends, it added.
“80% of users have only one Jio SIM...90% are Prime members, 84% claim to have paid Jio the monthly top-up as well,” the report said. It said 84% of these Jio users have paid monthly top-up with majority of them choosing Rs303 or Rs309 pack.
Jio is offering 1GB of 4G data per day and unlimited voice calls under Rs303 and Rs309 schemes. “Interestingly, we note that only 5% of surveyed users are using LYF phones with 40% and 7% using Samsung and iPhone respectively,” the report said.
BoFAML conducted a survey of around 1,000 users mid-June who were using Jio as a primary SIM to better understand consumer perception and usage after end of its free service.
“We note that these users are not a representative of the entire market as this was an online survey targeting mainly mid-to-high end users and these users are predominantly using Jio as primary SIM,” the report said.
As per the latest report published by the Telecom Regulatory Authority of India (Trai), Jio had over 112 million subscribers at the end of April.
Around 68% of the surveyed Jio users said that they have negotiated with their incumbent telecom operators and have got around 10-40% cheaper tariffs. BofaML said a partial impact may be felt in the upcoming quarter on incumbents but the overall magnitude would not be high.
“Bharti Airtel remains our preferred pick in Indian telcos as we find company best placed to compete with Jio at high-end and benefit from market consolidation at the low- end,” the report said.
Around 41% 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 to improve 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.