Reliance Jio customers to remain loyal even with paid services, says report

As Reliance Industries' Jio telecom unit to end an almost seven month spree of free calls and will make its services paid from April 1, 2017, a research conducted by brokerage firm Bernstein showed that
Reliance Jio customers to remain loyal even with... Source: PTI
India TV Business Desk New Delhi 18 Mar 2017, 03:39 PM IST

As Reliance Industries' Jio telecom unit to end an almost seven month spree of free calls and will make its services paid from April 1, 2017, a research conducted by brokerage firm Bernstein showed that many customers will continue subscribing to it.

“We expected many people would appreciate the 'free' Jio offer but be critical regarding voice quality - with many likely to move back to their primary operator once they were forced to pay. What we see is the opposite,” the report stated. 

Bernstein is a Wall Street research and brokerage firm.

"Jio scores highest overall on customer loyalty -- and outscores the incumbents on customer service, convenience, data coverage, data speeds, and handset choice. They also outscored Vodafone and Idea in voice quality and voice coverage," it added.

The report also stated that most of the 2G/3G users in the sample test expect to upgrade to 4G within the next year, and 80 per cent say they will consider Jio when they do.

The survey also gave some insight on the critical question of what per cent of Jio users will decide to stay and pay Rs 303 a month.

"Despite 67 per cent of users classifying their existing Jio SIM as 'secondary', a full 63 per cent of these users said they plan to make Jio their new primary operator and a further 28 per cent said they would continue to use Jio as a second SIM.

"Only 2 per cent of existing Jio users said they will give up their SIM. It's possible the new 'matching offers' by the incumbents will push the take-rate down a bit? but the extremely high starting numbers indicates things will continue to be tough," the report added.

Bernstein said it sampled 1,000 predominantly high value users drawn from across India.

"40 per cent of respondents are from the Metro circles, 30 per cent A-circles, 20 per cent B-circles and 10 per cent C-circles. 95 per cent live in urban areas and only 5 per cent report that they live in a rural area," the report added.

(With inputs from PTI)

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