Reliance shares slipped about 1.1% in early trade after Jio’s announcement on late Thursday to withdraw its Summer Surprise Offer after telecom regulator TRAI issued an order asking it to do so. Jio had announced its Summer Surprise offer on March 31, giving another three months of free services for customers who joined its Prime Membership plan and recharged with Rs 303 or higher by 15 April 2017. Such Jio customers were to receive free 4G data and other services for an additional three months (until 30 June 2017) as part of the summer offer.
But after the TRAI order on Jio Summer Surprise offer, Reliance Jio had to cancel the promotional scheme. In a statement Reliance Jio said, “Jio accepts this decision. Jio is in the process of fully complying with the regulator’s advice”. The company said it would pull the offer as soon as operationally feasible, “over the next few days.”
RIL’s shares were trading at Rs 1,422.55, down from a nine-year high of Rs 1,448.90 on Monday. RIL had scaled this nine-year high on the back of unexpected subscription of its Prime Membership plan.
Jio, which has crossed 100 million subscribers since it began commercial operations in September, stormed into India’s crowded mobile operator market by offering free services for a period that was extended until March 31. Rival operators were forced to slash prices to match Jio, in order to retain subscribers. But Jio’s Prime Membership plan is still available and users can sign up for the same until 15 April 2017 by paying a one-time fee of Rs 99.
With the curtains being drawn on the Summer Surprise Offer, it will be interesting to watch if Jio comes up with another offer to extend its free services, as it has done in the past.
Meanwhile, in a reaction to the end of Jio’s Summer Surprise Offer, shares of Jio’s competitors Airtel and Idea rose, with Airtel’s shares trading up 2.33% at Rs 349.55 and Idea’s shares trading up 2.6% at Rs 88.85, with more movement expected in both these stocks.