Jio's value proposition strong despite charge: Merrill Lynch


Mumbai, Oct 16 (IANS): Investment management company Merrill Lynch on Wednesday said Jio may continue its growth momentum as it remains the cheapest offering despite charging 6p for off-net calls.

Merrill Lynch expects the subscriber momentum to slowdown in FY21-22 but expect average revenue per use (ARPU) improvement on back of tariff hike.

"We believe its value proposition to consumer remains strong in terms of approx. 20 per cent cheaper tariffs and better coverage. Incrementally we expect the growth to come more from the mid-to-low end subs in process diluting the overall ARPU," Merrill Lynch said.

Besides it said that Vodafone faces the risks of further market share loss before its integration with Idea networks completes and hence Jio is well placed to "capitalise on the mid-to-low end subs".

Merrill Lynch also expects Jio to bid for 700 MHz/3.5 GHz spectrum and be a first mover in 5G rollout in India. "However, the timing of 5G rollout would likely be after we see scale picking up in China 5G as it would lead to lower handset prices and give visibility on B2B applications," it added.

  

Top Stories


Leave a Comment

Title: Jio's value proposition strong despite charge: Merrill Lynch



You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.