Reliance Jio Subscriber Growth Declining by 50%, claims Motilal Oswal report

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Reliance Jio launched its services on September 5 this year, and company’s Managing Director and Chairman Mukesh Ambani gave a target of 100 million Jio users to its employee. But it seems like the company might not be able to achieve this goal soon. A report claims that company’s subscriber growth is slowing down by 50 percent. Motilal Oswal, a brokerage firm told in a report that after launch company had added 16 million new subscribers in just 25 days but after that, for next 45 days it added only 17-24 million subscribers, which is surprising. The firm presented the report after meeting Reliance Jio’s management.

The report also claims that Reliance Jio outlets received complaints regarding data speed as well. And user told the company that they are receiving very less speed from past three months. The report says that user noted around 70-80% decline in internet speed over the previous three months.

Recently, we also told you that Reliance Jio has slowest internet speed in India, while Airtel India is leading in the speed department. The average speed of Jio was 6.2Mbps while Airtel is serving its customers with blazing fast speed of 11.44Mbps.

After the launch of Jio in India, another report also claimed that users are using Jio SIM as secondary SIM only. Even most of the users haven’t changed their previous SIM and still using it as the first SIM. Most of the user bought the Jio SIM to surf unlimited internet and calls, but haven’t made it primary SIM.

The Motilal Oswal report said that despite offering free SIM cards, Reliance Jio has seen a significant impact on footfalls post the government’s demonetization decision. Retail outlets are suffering from approximately 40-50 percent drop in footfalls versus last month.

The report also discussed the investment done and financial situation of the telecom operator and said that it would take Jio at least 8-10 years to turn profitable. Right now the company is offering everything for free, and it will be interesting to see how the company is going to monetize its services. But as most of the users are using the Jio as secondary SIM, company concerned that they might switch which will result in more declination of subscriber growth.

Recently, Reliance also introduced home delivery service of Jio SIM. The new service might help the company to achieve its target and improve the scenario. But we have to wait and watch for that. The company is also thinking about expanding its distribution channel. Right now Jio operates from company’s retail arm Reliance Digital Stores and thinking about opening dedicated Jio modern outlets and stores. And it will help Jio serving its customer in a better way. The Jio Welcome offer is also going to end in December month. And the company is thinking about introducing a new plan so that it can attract more customer.

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