Reliance Jio on Tuesday once again ambushed incumbents on the tariff front by unveiling a Republic Day offer which has slashed rates on its packages by Rs 50 while increasing per day data limit by 500 MB. This comes after its 100% cash back offer, which was announced on January 16. With these tariff packages, Jio has further increased the gap between its offers and those of incumbents which had been reducing before it. Jio’s popular Rs 399 plan had a validity of 70 days and offered daily data limit of 1GB, which under the Republic Day offer has become Rs 349 with validity remaining the same and the daily data limit increasing to 1.5GB. In comparison, Bharti Airtel’s similar plan is for Rs 399 with a validity of 84 days and a daily data limit of 1 GB.
Bharti’s Rs 349 plan has a validity of 70 days and a daily data limit of 1 GB. Jio, which posted a net profit of Rs 504 crore during the October-December quarter against Bharti’s Rs 306 crore, had also reported higher operating metrics and data volume and usage than peers. It had said in the post-result analyst meet that its recent price cuts was aimed at incumbents’ move to reduce the price gap vis-a-vis its offers. Taking note of it, Kotak Institutional Equities had written in its note that the telecom sector is undergoing a brutal, competitive price war and it is far from over.