Shares of Reliance Industries BSE 6.91 % rise up 5 per cent in Wednesday’s trade to hit a level lastly stirred in June 2009. The RIL Stocks interpolates the profits after the company said it would start charging for its 4G services from April 1, 2017.
Reliance Industries investors took the announcement positively, as they had been turbulently waiting for cash flow from the multi-billion-dollar telecom venture where the move will also ease pressure on RJio’s contemporaries. Goldman Sachs said the end of free offers should mean many customers would stop using Jio as a ‘second SIM’, and return to their primary operators.
Jio’s new endeavors are tantalising , but not very enchanting to consumers:
· Jio offers Rs 303 for unlimited voice (no roaming charges) and data, compared with Rs 349 for unlimited voice and 1GB data offered by Vodafone.
· There is a fact that the top 10 per cent of Indian mobile subscribers (who have an average Arpu of Rs 600) account for 40 per cent of industry revenues and will still find Jio offer attractive. ”
· From April 1, RJio’s existing users and those coming on board in March will continue to get 1GB data a day and all of Jio apps for Rs 303 a month at a one-time cost of Rs 99. In contrary market leader Bharti Airtel offers unlimited calls and 1GB 4G data at Rs 345 for 28 days
· Today morning Reliance shares rallied more than 7% hitting nearly 8-year high cheering investors who were the biggest contributors to Nifty.