Monday, September 05, 2016

Most of the Jio’s Free Services Are Costlier

              Reliance Jio’s, India’s most recent network, provides world’s cheapest tariffs with free voice calls, 4G services, and unlimited SMS, in the perspective of the customers. This brings to the largest digital revolution with the Affordable and simple tariffs. Their tariff plans look unbelievably awesome; Reliance with this business idea is going to make more money. Jio’s free services are physically free, but virtually costlier. These things you need to know about Jio.


jio's-free-services-are-costlier
Most of the Jio’s Free Services Are Costlier

Jio’s Business Model:

In India, all the current network providers get Rs.150 per month on an average, as per the monthly average revenue per user (ARPU). ARPU is a measure used primarily by consumer communications and network companies. This is defined as total revenue divided by the number of subscribers. You will be considered as a high-value customer if you spend over Rs.250 per month.


Now, just have a look at the Tariff Plans provided by Jio:


Jio's-tariff-plans
Most of the Jio’s Free Services Are Costlier


Which plan can be yours?

If you are a person who spends Rs.150 worth of voice calls, data, roaming and SMS every month, then these plans are of most useful and affordable for you. As per ARPU, other telecom companies make an average of Rs.150 per month after charging for voice, data, roaming and SMS. Here Jio is also making the same amount per user on an average just by pricing the packs differently.


If you are a moderate user then what might be your plan, fortunately, there are no plans between Rs.149 and Rs.499. Though there exist smaller plan like Rs.19,Rs.129,Rs.299 it offers fewer data like 0.1GB, 0.75GB, 2GB respectively and validity is for 21 days. Later ‘add-on packs’ have to use the main pack. Practically saying, you will spend more money for lesser value through these packs. So, There is no other way, you have to opt to Rs.499 packs if you need some high data. There is no other plan between Rs.149 and Rs.499 that can provide better offers. This is just a practical trick to get you directly to Rs.499 plan by just misguiding you by showing unlimited 4G night data.

Now if you need more than 4GB of 4G then you have to opt for a Rs.999 plan as there is no other plan in between them. This offer provides only 10GB for just 28 days even after spending Rs.999. Further, there are quite many packs like Rs.1499, Rs.2499, Rs.3999 and Rs.4999 which provide much more on data and Wi-Fi but that cannot be afforded by most of the people. There are just a business techniques applied by the top business person.

All these plans are only valid for 28 days which can easily  understood, as ‘a month’ by most people. How many months we have to recharge in a year with that 28 days. i.e. it comes around 365/28 = 13.05 for complete 13 ‘billable months’ in a year






If we convert all the data plans to 1GB, Here are details that come,

Let us exclude the unlimited night data packs because most of you may not be using it 100%. Wi-Fi data is not available for many people to access. Then the only data you are using will be 4G. If we convert all the data plans to 1GB, then the price per GB of these plans will be as follows,
0.3GB for Rs.149 = ~Rs.497/GB
4GB for Rs.499 = ~Rs.125/GB
10GB for Rs.999 = ~ Rs.100/GB
20GB for Rs.1499 = ~ Rs.75/GB
35GB for Rs.2499 = ~Rs71/GB
60GB for Rs.3999 = ~Rs.67/GB
75GB for Rs.4999 = ~Rs.67/GB

But if you remember the advertisement of the reliance Jio showing offer of Rs.50/GB, you can even doesn’t see this in the highest plan converted for 1GB. Jio came up with this Rs.50/GB rate by adding the Wi-Fi access, but this is not feasible for most of the people to utilize. These offers are very useful if you have a Wi-Fi hotspot available near your house or at your workplace.

With these offers and Tariffs most of the high-value customers of its biggest competitors will definitely shift to Jio. With this Reliance may achieve a huge market share in the next couple of years.

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