Reliance Jio launches Dhan Dhana Dhan offer to replace Summer Surprise plan
Reliance Jio unveiled a new offer 'Dhan Dhana Dhan' after being told by Trai to withdraw its Summer Surprise plan
Mumbai: A day after withdrawing its summer surprise offer, Reliance Jio Infocomm on Tuesday launched a new plan—Dhan Dhana Dhan—that offers its Prime members 1GB data per day at 4G speeds for 84 days for Rs309.
The charge for the three-month unlimited data plan is Rs6 more than the Summer Surprise offer.
“The plans start with the most affordable Rs309 all unlimited plan, which provides unlimited SMS, calling and data for three months on first recharge," Jio said in a press statement.
The firm also announced a Rs509 unlimited plan for customers with high data usage—offering unlimited SMS, calling and data (2GB a day at 4G speeds) for three months on the first recharge.
“Considering the special benefits that are available to Jio Prime members, customers who were unable to subscribe to Jio Prime for any reason, can continue to do so by paying Rs408 or Rs608 to avail these benefits," Jio said.
The firm withdrew its Summer Surprise offer of free services owing to a directive from the Telecom Regulatory Authority of India. Under the plan, Jio Prime members recharging for the first time with Rs303 or higher were offered complimentary data services for three months until July.
Shares of Reliance Industries Ltd, Jio’s parent firm, on Tuesday fell 0.5% to Rs1,374.10 on BSE, while the Sensex gained 0.72% to 29,788.35.
Goldman Sachs in a report on Reliance Industries released on Tuesday raised Jio’s valuation to $11 billion from $4.5 billion, implying an enterprise value of $32 billion.
Goldman Sachs raised the valuation for Jio owing to higher market share by revenue due to the higher-than-expected retention rate for Jio Prime subscribers. Jio has more than 100 million subscribers, with around 72 million being Prime subscribers. Goldman Sachs had estimated Jio Prime membership at 50 million subscribers.
“Our telecom team now expects Jio to capture 15% market share in FY21 estimated (from 11% previously)," said Goldman Sachs.
The securities firm also expects higher Ebitda (earnings before interest, taxes, depreciation and amortization) margins for Jio.
“We now forecast lower network operating costs of Rs96 billion in FY21E for Jio (versus Rs106 billion earlier) driving higher Ebitda margins as Jio continues to build its own towers. We expect Jio to continue to build 50% of its tower requirements on its own, and lease the other 50%, which have lower operating costs compared to leasing a tower (no rent payable on own towers, against Rs35,000 on leased towers)," said Goldman Sachs.
The securities firm expects Jio to break even (in Ebitda terms) in fiscal 2019, as against its prior prediction of fiscal 2021.
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