RIL may see spike up in revenues in next quarter

From its launch in September 5, 2016, Reliance Jio has evolved into a pool of around 72 million subscribers and holds a 23% market share, while the company further wants to reach the mark of 100 million subscribers. After giving free services for almost a year, they have recently started charging for their services. JIO has came up with Rs 99 as membership fees and monthly plan of Rs 303.With this kind of customer base, the expected revenues for last 2-3 months are around Rs 2900 cr.

Telecom companies' revenue model was set on the basis of voice services being primary source of revenues and data services being a secondary source. But now JIO is forcing other telecom companies to change their revenue model as JIO is giving free voice calls. Currently, there is a huge competition in the telecom companies, which are trying to provide competitive prices. Recently , JIO came up with Rs 303 monthly plan, and the other companies also launched similar prices. Some companies are trying to expand their customer base in other cities, like MTNL which was limited to Mumbai city,has recently launched plans for various cities.

Currently, the telecom sector is seen as a highly competitive market as the customer volatility has increased, and every company is trying to maintain their customer base. As most of their customers may shift to JIO if the companies do not provide competitive prices.