Jio’s Summer Surprise Offer Has Given Sleepless Nights To Others! Airtel Loses Rs 4500 Crores!

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Jio has already posed many problems for Airtel. By launching such hard to resist offers, the company has already captured the telecom market. Even though Jio has launched a paid plan i.e. Rs 303 Prime Membership, customers are in for it.

This has affected the revenue of Airtel to a great extent. Yes, Bharti Airtel’s share fell by 3 percent on Monday and it lost Rs 4,500 crores ($700 million). Airtel is unfortunate that it lost such a whopping amount in just 1 day; all thanks to JIO’s Summer Surprise plan!

Analysts had already warned that Jio could prove to be very disruptive for the telecom market. The company is offering 3 months complimentary service, and this might give it a good grip over the market. The prices of Reliance Jio have been very less; it has launched such plans that we must have never even imagined.

While Airtel is suffering, we have Jio, who is ready to sacrifice on its revenues. Since the time it has launched Prime, it has set the price at Rs 303 per month. Couple of days back, the company claimed that it has touched the 72 million customer base, which means, it could have easily earned $753 million i.e. Rs 4,882 crores (Considering Rs 303 per person per month i.e. 72 million x Rs 303 x 2 months).

Instead of going behind revenues, Jio thought of forgoing it, and introduced the “Summer Surprise” plan, under which customers can avail free services for 3 months.

There was a good possibility of Jio earning Rs $750 million between April and June, but being a company that cares for customers, it gave priority to the free offer.

Such things don’t matter for Jio, as its capitalization has been shot up by $2.3 billion today. Prime subscription charges are Rs 99 per customer. Jio has already revealed that it has got 72 million prime subscribers, which means Jio has already earned 72 million * Rs 99 = Rs 712 Crores as Prime subscription fees. Most prime users have recharged their Jio sim with Rs 303 and some have recharged it with Rs 149 plan. If we take an average then it comes out to be
Rs 1800 Crores. Jio has already earned close to Rs 2500 Crores in this month.

We are not yet sure as to how Jio’s Summer Surprise plan will further affect other telecom providers. Even Idea Cellular’s shares are being traded at a 23 percent lesser price. Airtel and Idea will have to bring about stability in their capitalization, if they want to survive in this market.

More surprises are expected from Jio; let’s wait and watch!

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