Reliance Jio may have started charging its customers but continues to keep up the pressure on incumbents by frequently coming out with offers like cash-backs that virtually continues to keep its services free. In another such move which would force incumbents to revise their tariffs downwards, Jio has come up with a cash-back offer of up to 100% on recharges worth Rs 398 and above made between January 16 and 31. For instance, a consumer making a recharge of Rs 398 will get a cash-back of Rs 400.
If the recharge is made directly by consumers, the Rs 400 cash-back will accrue through eight vouchers of Rs 50 each. However, if the recharge is made through mobile wallet Mobikwik, consumers will get an additional cash-back worth Rs 300, which makes the total cash back go up to Rs 700. Though cash-backs have been offered by incumbent operators like Bharti Airtel also, they are not as frequent and high as is done by Jio. This is the second cash-back offer by Jio after the previous one launched in November 2017 expired on January 15. In the earlier offer, there was cash-back benefit worth Rs 2,599 for subscribers who made recharges of Rs 399 and above.
Interestingly, Jio’s cash-back offers have become sharper and more frequent since it hiked tariffs by reducing the validity of the voucher in October 2017. On January 5, Jio slashed the tariffs on all its plans by Rs 50, which has taken its data price to a new low of Rs 4 per GB. Analysts said that the challenge before Jio is to retain its customers since it has started charging. In such a scenario subscribers need to make a decision whether to continue with their Jio number or the earlier operator. Since data show that Jio has not acquired a high number of customers through number portability, it means that the bulk of its customers treat it as their second number.