Netflix,Amazon Prime are latest weapons in India Telecom war :There’s always an immense competition in the telecommunication industry. All the companies are putting their best to entice the customers towards them. Each service has its own strategy to grab the attention of audience. They give different options to get more customers. In late 2020 Indian Telecommunication business Companies are coming out with another new plan to gather more consumers.
All the leading telecom service providers have increased the tarriff in 2019 and now they are trying to offer freebies to grab the eye of customers towards their service.
India has the world’s biggest film market keeping the no.of tickets sold per year as the concern. But the pandemic has disturbed this too. Schools are shut, offices are locked, gyms and malls are closed and people are left idol at home. Though there are online sessions going on for students and Work From Home for employees Indians are hitting various sites for entertainment. To make money with this, the telecom competitors have now engaged themselves in offering their customers with free subscriptions of online entertainment sources.
Due to the pandemic, many films are released on OTT and people watched them from their own places safely. The telecom giants are now offering free subscription incentives of world famous Netflix and Amazon Prime for their customers when they choose certain packages.
Jio has the most solid customer base than any other network in India. On Tuesday, it has launched a new plan of 399 rupees, that would give 75 gigabytes data along with Netflix subscription for a month on Smart phone and also allows access for two other applications for an year. This is a single postpaid package. Using this, one can also have the free access for Jio movies and songs library.
Such offers and incentives are being offered by the companies to attract more users and give tough competition to others. Bharti Airtel Ltd’s 75gb data plan costs 499 rupees and doesn’t offer any access to the OTT platforms. So the postpaid plan which was announced by Jio has 20% less price than Airtel and other benefits too. Vodafone Idea collaboration Vi has a plan that offers 40GB data but doesn’t include the subscription for Netflix or Amazon Prime Video or any other popular OTT platform stated the analysts at Jefferies India Pvt., in a report to the clients. They also added that the Reliance Jio is offering more services at less price.
According to Jefferies analysts, The no.of postpaid users has been decreasing since the past few years and there are just 5% of the users who use these and they contribute for the generation of 15% of revenue in the sector. Over 1.14 billion users only 5% of people are using monthly billing of mobile services and the dominating are the pay as you go packs.
In 2018 Jio has also introduced some postpaid plans but they are not able to attract the users and though some people opted the plans, they didn’t go live for long time and there are not more transactions on the plans due to various reasons, stated Morgan Stanley analysts.
Naval Seth and Sonali Shah, analysts at Emkay Global Financial Services Ltd. stated that the new offerings would act as a driving force for attracting more customers towards postpaid plans. They also added that the customers of Airtel and Vodafone would also expect their service providers to link up with OTTs and provide extra benefits on Postpaid plans. There are some postpaid users who pay more coins on monthly basis than many of the prepaid users.
After the aggressive announcement of content offerings by Jio, it’s competitors Bharti Airtel and Vodafone Idea has lost 9% and 12.7% of its usual postpaid customer base in two sessions respectively.
Thus we can say that the new prepaid plan of Jio is acting like a game changer in case of postpaid services in Telecom Industry.
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