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Jio's new offer dampens tariff hike talk, adds to Vodafone Idea's worries

Reliance Jio's new offer may impact Vi's fundraise plans, say analysts

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Jio has over 400 million subscribers, but has seen slower growth in customer addition in recent months

Aneesh Phadnis Mumbai
Reliance Jio’s two-year discounted offer has dampened expectations of a tariff hike in the telecom space and has added to the woes of Vodafone Idea (Vi), which is looking to reduce subscriber loss and raise funds, analysts said. The new offer will also slow the recovery in average revenue per user (ARPU) of telecom companies, they said.
 
On Friday, Jio launched a new bundled offer giving customers a handset, two years of unlimited calls, and two GB data per month for Rs 1,999. A one-year plan with similar benefits will be made available for Rs 1499.
 
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