Reliance Jio likely to follow segmented strategy on tariffs, Jefferies

"Reliance Jio is expected to follow a segmented strategy on tariffs with aggression in the feature phone segment. The telco, however, will maintain a 7-20% tariff discount to peers in the smartphone segment, while targeting greater share in the featurephone segment, Jefferies said in a note.
“We believe tariff hikes are unlikely till Reliance Jio is able to stabilize its subscriber additions. Our analysis suggests that that smartphone subscribers form an estimated 75% of Jio’s revenues, which is why we don’t expect Jio to be aggressive in this segment and maintain its 7-20% tariff discount. As a result, Jio could follow tariff hikes in the smartphone segment and we build a 10% tariff hike in 4QFY22 and 4QFY23,” it added."

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