90% of the Reliance Jio users opted for Prime: BofAML
According to latest update, 90 per cent of the Reliance Jio users have subscribed to its promotional Prime membership plan as per a report by Bank of American Merill Lynch.
As per the report, around 76 per cent of the customers are ready to continue to Jio’s service once the promotional period ends.
“80 per cent of the Jio subscribers have only one Jio SIM…90 per cent are Prime members, 84 per cent claim to have paid Jio the monthly top-up as well,” the report mentioned.
The report added that 84 per cent of these Jio users have paid monthly top-up with majority of the subscribers opting for recharge of Rs 303 and Rs 309 schemes.
The report said, “Interestingly, we note that only 5 per cent of surveyed users are using Jio LYF phones with 40 per cent and 7 per cent using Samsung and iPhone respectively.”
BofAML conducted a survey of around 1,000 users mid-June who were using Jio as a primary SIM to understand the consumer perception and usage after end its free service.
“We note that these users are not a representative of the entire market as this was an online survey targeting mainly mid-to-high end users and these users are predominantly using Jio as primary SIM.”
As per the latest report published by the telecom regulator TRAI, Jio had over 112 million subscribers at the end of April.
Around 68 per cent of the surveyed Jio users said that they have negotiated with their existing telecom operators and have got around 10-40 per cent cheaper tariffs.
BofAML said a partial impact may be felt in the upcoming quarter on incumbents but the overall magnitude would not be high. “Bharti Airtel remains our preferred pick in Indian telcos as we find company best placed to compete with Jio at high-end and benefit from market consolidation at the low-end,” the report mentioned.
Around 41 per cent Jio users are still finding it difficult to connect calls with other networks and hope that it will improve gradually.
“We expect Jio to fix this by deploying more sites to improve its coverage and consider Bharti Airtel to be a key beneficiary from this deployment as it has to have 2 lakh sites in next 12 months from current 1.1 lakh sites,” the report said.