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85% of Reliance Jio users to continue as paid customers after free offer expires

News Agencies | Updated on: 11 February 2017, 5:46 IST

Over 85% of the current Reliance Jio customers have expressed interest in retaining their connection even after its free 4G service offer expires on 31 March, 2017, as per a sample conducted by Bank of America- Merrill Lynch.

"An overwhelming majority over 85% of Jio users will continue as paid consumers after the expiry of free offer. A further 8% could continue if voice issue is fixed implying just over 6% exhibiting reluctance to continue with Jio," a BofA-ML report by analysts Sanjay Mookim and Krishan Binani released today said. BofA-ML commissioned SurveyMonkey to conduct an online survey of over 1,000 respondents across the country with over 500 Jio users.

Reliance Jio is offering free 4G mobile broadband service till 31 March, 2017 and unlimited voice calls and free roaming for lifetime. The survey found that over 75% of respondents have directly or indirectly, through a friend, used Jio. "Jio's faster data speed appears to be a bigger attraction than tariffs. The biggest reason for users to test Jio during the free offer period was not that it was free (28 percent) but that its data speeds were higher (32%). Interestingly, a significant number cited Jio's free content as a reason to use it," the report says.

Jio users (57%) have shown interest to pay Rs 400-500 for a bundled offer of 4GB data and free voice calling and another 12% users said that they won't mind paying higher and would choose larger data packs. "Almost 19 percent users would choose Jio's lower pack and retain flexibility to add data packs as needed. Just 12% Jio users plan to switch back at average revenue per user of Rs 400," the report said.

Over 60% of the respondents would upgrade their current phones to use Jio. The report said that over 72% are extremely or very happy with voice services provided by their current operators and just over 4% were unhappy. Around 12% users face higher than expected call drops and around 38% report no call drop issue, as per the survey.


First published: 6 January 2017, 12:07 IST