Reliance Jio Preferred As Secondary SIM, Finds Survey

by CXOtoday News Desk    Jun 16, 2017

Reliance Jio

Reliance Infocomm has disrupted the telecom sector in India last year with Reliance Jio doling out “free” services. All the telecom operators had to go through a fierce battle to retain their customer base and gain new ones. In fact, every vendor waited for the Jio offer period to get over to once again gain grounds.

Amidst much speculations whether Jio would fizzle away once the offer period is over, came a survey early this year by Bank of America Merrill Lynch (BAML) which said, a chunk of the Reliance Jio users will continue using its service even after the termination of free services. This is in contrast to the opinion of many who said that customers will discontinue as soon as they will be put on tariff usage.

“An overwhelming majority– over 85%—of Jio users will continue as paid consumers after the expiry of free offer. A further 8% could continue if voice issue is fixed–implying just over 6% exhibiting reluctance to continue with Jio,” BAML highlighted in its report dated 4 January.

However, a latest study by market research firm Velocity noted that four of 10 respondents are using Reliance Jio’s service, but 82 percent of the connections are being used only as secondary connection.

Mobile/internet users base to grow 450 million by the end of June 2017, highlights the study.

“The study aims to capture, the mobile users sentiments who adopted Reliance Jio early during the launch and are likely to continue with reliance Jio post the subscription offer ends,” a Velocity press statement said.

Call drops poses to be major concern for Jio. 86 percent users still intend to continue using the services for its “free factor”. Majority of the customers are using its prepaid service, the report notes that, postpaid customers base is much higher for rivals like Vodafone and Airtel.

Vodafone has the best network consistency as well as sound quality, as per the report said. Jio got the lowest rating on call consistency, with only Aircel and Docomo behind it. While Jio is rated high on call rates and data pack charges. It is also rated the highest on value added services like customer service and Internet speed.

“The study was conducted among 2000 + respondents to understand user sentiment and their views about competition in this volatile market segment,” the statement added.

The study was conducted across cities including Delhi, Mumbai, Bangalore, Kolkata, Hyderabad, Pune, Ahmedabad and Kochi.

The thing to watch now is, what will Mukesh Ambani do to make Jio the first priority of customers and how the issues of call drops and voice quality will be addressed.