Jio has recently announced the implementation of new tariff prices from 3rd July 2024. Jio users can see significant tariff increases across its range of plans and many Jio users will face issues in continuing the previous plans. However, Jio also introduced two new applications: JioSafe and JioTranslate. JioSafe is a secure communication app for calling messaging and file transfers and JioTranslate is an AI-powered multi-lingual communication app for translating voice calls, messages, images and text. Both of Jio’s latest apps are paid services.
Introducing Jio New Plans
Now, let’s talk about the all-new Jio plans effective from 3rd July 2024. Reliance Jio also introduces unlimited data plans. Some of the popular previous plans are Rs.155, Rs.239, and Rs.666. Now, they will be available at Rs.189, Rs.299, and 799 respectively. The table below includes the plan description, existing price, new price, data allowance and validity. The average hike of all plans is about 20% after 2.5 years.
| Jio Plan Description | Existing Price (Rs.) | New Price (Rs.) | Data Allowance | Validity (Days) |
|---|---|---|---|---|
| 2GB | 155 | 189 | 2GB | 28 |
| 1GB/day | 209 | 249 | 28GB | 28 |
| 1.5GB/day | 239 | 299 | 42GB | 28 |
| 2GB/day | 299 | 349 | 56GB | 28 |
| 2.5GB/day | 349 | 399 | 70GB | 28 |
| 3GB/day | 399 | 449 | 84GB | 28 |
| 1.5GB/day | 479 | 579 | 84GB | 56 |
| 2GB/day | 533 | 629 | 112GB | 56 |
| 6GB | 395 | 479 | 168GB | 84 |
| 1.5GB/day | 666 | 799 | 126GB | 84 |
| 2GB/day | 719 | 859 | 168GB | 84 |
| 3GB/day | 999 | 1199 | 252GB | 84 |
| 24GB | 1559 | 1899 | 672GB | 336 |
| 2.5GB/day | 2999 | 3599 | 912.5GB | 365 |
Why Jio is Increasing Tariff Prices
Jio is increasing its tariff prices due to various important reasons. Companies often focus on acquiring customers first and later monetizing their products or services.
- First of all, they need to improve their revenue and profitability.
- They want to enhance their Return on Capital Employed (RoCE).
- As they have been operating at low plan prices for a long time, there is space for price increases without greatly affecting customer affordability.
Impact on Existing Jio Subscribers
As I told you earlier, some Jio users will face issues continuing the previous plans. As the same plan costs them more, they might choose a lower-value plan by giving up some data benefits. If they need more data they might recharge with an add-on pack.
Some users may switch to cheaper broadband services for their data needs and only recharge the base plan. Additionally, some may port their SIM to other companies if they find better offers.
Expert Opinions on Jio’s Tariff Increase
- Some experts suggest that telecom companies need at least a 20% rate hike to reach a sectoral ARPU of 200-217 by the Financial Year 2025-2026.
- The telecom sector continues to adjust pricing strategies to increase its revenue in a competitive market like India.
- Analysts anticipate a 15-16% revenue boost, indicating that the company’s revenue is likely to grow in the coming years.
- Reliance Jio’s peers, Bharti Airtel and Vi, are expected to follow Jio with their new tariff plans.
- Jio may experience down trading, with users opting for cheaper plans due to the higher prices.
- Additionally, some users might switch to other providers if they find more attractive offers.
Customer Reactions to the Price Hike
After getting the news of the Jio price hike, many users shared their opinions on social media platforms like Facebook, X (formerly Twitter), and YouTube. When we checked YouTube we saw many funny comments expressing their frustrations and sharing humorous memes about the increased tariff plans.
One user commented, “It’s our mistake for not supporting other companies and allowing a monopoly“.
Some users have even said, “Ambani wants to recover from us the money he spent on his son’s wedding“.
We have attached the screenshots below –
What Can You Do?
To effectively address the increase in Jio tariff, follow the steps below to handle the situation wisely:
- Compare with other operators: Check whether other operators like Airtel and Vi have any plans priced cheaper than Jio. If you find any suitable plans, consider switching to the other operator.
- Bundled Offers: Some operators provide bundled offers for family plans. If you have more than one family member, you can choose this option.
- Check Broadband Plans: If the price of the data plan increases, consider looking into broadband service providers who offer cheap unlimited plans. You can then recharge only the base plan for your phone.
- Optimize Usage: If you prefer to stick with Jio, consider optimizing your usage and using data only when needed.
Conclusion
In conclusion, we can say that Jio’s introduction to new plans, effective from July 3, 2024, represents a strategic move to enhance service quality, increase its profitability and drive sustainable growth through strategic investments in technologies like 5G and AI. However, the price hike in Jio’s new plans could lead to a shift in user behaviour. Despite this, the anticipated 15-16% revenue boost suggests a positive impact on Jio’s financial growth in the coming years.
Jio’s competitors, Airtel and Vi are also likely to change their tariff plans. This will evolve the overall market dynamics. This is what we can say at the end.
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