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 Jioâ€™s service once the promotional period ends, it added.
â€ś80% of users have only one Jio SIM…90% are Prime members, 84% claim to have paid Jio the monthly top-up as well,â€ť 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. â€śInterestingly, we note that only 5% of surveyed users are using LYF phones with 40% and 7% using Samsung and iPhone respectively,â€ť the report said.
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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.
â€śWe 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,â€ť 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.
â€śBharti 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,â€ť 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.
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
â€śWe 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,â€ť the report said.