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Reliance Jio May Achieve Userbase of 25 Mn By Dec2016

Reliance Jio stormed the Indian Telecom market with storm and created ripple factor. With the current user acquisition trend Reliance Jio may be sitting on around 15 Mn userbase. It is important to note that the initial response is overwhelming and most of the users are looking to experience the free voice an data.

Reliance Jio strategy worked when it comes to user acquisition. If we consider the standard ARPU of Telecom sector then Reliance Jio is incurring around $7 to acquire new userbase. As we all know that Reliance Jio will be making the services commercial by 1st Jan 2017 and may acquire 10 Mn additional user base by Dec 2016. Last quarter of 2016 will witness Smartphone growth given e-tailor Diwali Sale and it will benefit Reliance Jio the most.

Basis the potential Smartphone Sale in Oct-Dec2016 quarter, I am assuming that around 40% new Smartphone users will adopt Reliance Jio Services.

In a scenario, Reliance Jio achieve 25 Mn User base before they start charging user base should be considered exceptionally good.

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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