On 31st march, Reliance Jio’s Happy New Year offer will eventually end after which the subscription will get paid for using the network service. Being the newest entrant in the telecom sector, the announcement of Jio attracted more than 100 million subscribers to the network. As per the new reports, the New Year offer is at the verge of closure and the response to the network has been lukewarm at its best.
ET has reported that not many customers have purchased the Reliance Jio’s Prime offers. Jio Prime membership is the latest offer by the Reliance company which aimed to soften the blow on the customers who will have to pay for the service before 31st March. The new offer will start from 1st April and in order to continue using the New Year offer, the customers are required to get a recharge done of Rs 99.
As per the report of ET Now, Jio has got subscription of more than 20 million new customers in the last 4 weeks itself. This happened after the announcement done by RIL Chairman and MD Mukesh Ambani that network had confirmations over 100 million new subscribers with in such a short time span. But now, Jio managed to attract only 16 million customers for the Prime membership. A huge percentage of people have turned away from the network service with the end of freebies.
With the downward pressure on tariff, along with the end of free offer, tariff war with the other network rivals might end. ET Now reports, Reliance Jio replied that the numbers mentioned are way off the mark. But if only 16 million customers out of 120 million have subscribed for the Prime offer, it means only 13 percent have selected to join.
During the same time, Reliance Jio is asked to be evaluating options to extend the Prime offer, to boost the number of subscribers. As per the Cellular Operators Association of India (COAI), other telecom companies like Airtel, Vodafone and Idea, jointly increased their total subscriber base by 2.27 million in the month of February to reach 817.42 million.
On the other hand, the government revenue, lenders and shareholders in the Telecom market in India has been hit badly post Reliance Jio, and the sector is facing debt of Rs 3.5 lakh crore.
The report said that the government is worried about the decline in licence fee receipts because of a fall in telecom companies’ revenue. The cabinet secretary has called for an urgent meeting on March 29, with an aim to discuss the telecom sector’s problem. Finance Minister Arun Jaitley and officials from the department of telecommunications will attend the meeting.