Reliance Jio Per Subscriber Acquisition Cost May Cross $30

Reliance Jio 4G launch and subsequent welcome offer acts like mystery box for many. Reliance jio showed its care for subscriber and communicated that pay post experience the service. It's a fantastic marketing move to trump competitor but at the same time it's a risky game. Based on Reliance jio ARPU target and potential subscriber acquisition of more than 50 million by Dec 31st 2016, Reliance jio may incurr around $1.5 Bn. 

The analysis of cost is based on reverse eagle eye process and it turns out to be $30 per subscriber acquisition. It's amazing that Jio posses such a confidence on Indian subscriber that they will start spending more $7 plus from current level of blended $2 on data. As we all know that Mukesh Ambani likes to take big risk and all the time he came out with huge success and I’m sure that this time around the probability of success is not that high. I wish all the best to Reliance Jio for grand success.

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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.