Reliance JioInfocomm’s move to reduce the limit of data usage from 4GB per day to 1 GB per day will reduce the network coverage and will pave the way for better 4G experience
JP Morgan has expected the JIO to end with 90 million customer in January-March period assuming conversion ratio of 50%.
According to the Credit Suisse, less traffic on network after imposing restriction of 1GB per day will give all the users a high quality service which further help in retention of users.
JIO’s new initiatives such as home delivery of 4G SIMs , is helping the company to chase high ARPU customers , a move which is adding to the threats posed by Reliance JIO for its competitors like Bharti Airtel , IDEA cellular
According to JP Morgan , the company seems to generate the $3 billion( 20,000 crore) EBITDA ( Earnings before interest, tax, depreciation, and amortization) with the base of 140 million paying customers at the end of financial year reaching out the ARPU of Rs 300 per user , which is more than double the current industry average of Rs 126.
