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India has been one of Facebook’s biggest markets for quite a few years now. With its user base continuously growing in the country, Facebook has also benefited from the growing internet penetration and availability of faster network and affordable smartphones. During its earnings call for the fourth quarter of 2016, Facebook’s CFO David Wehner pointed out that Reliance Jio’s free offer has helped the company register ‘strongest’ growth in India in terms of user base.
“In the fourth quarter wanted to call out that we have seen an increase in third party promotional free data plans in places like India,” Wehner said during the earnings call . “So that (free offer) clearly is having an impact in APAC (Asia-Pacific) and India was our strongest growth market (by user base). So that would be something that I would say was a little bit more unique this past quarter,” Wehner added.
Wehner was clearly referring to Reliance Jio’s free offers like Welcome Offer and Happy New Year, under which users get free high-speed 4G data and unlimited voice calls along with bundled apps subscriptions. Even though a new entrant, Reliance Jio’s free offers have already led to a radical change in the telecom industry with rivals being forced to significantly reduce their tariffs.
Already, rival Vodafone, which also happens to be second-largest telco in India, is looking to merge its business with Idea Cellular. Vodafone’s merger decision is believed to be due to Reliance Jio’s free and ultra affordable offers.
Facebook CFO’s observation about Reliance Jio’s contribution to the company’s growth in India comes shortly after a report that claimed thatJio currently has 94 percent mobile data traffic share in India. Now, this brings down other operators such as Airtel, Vodafone, and Idea at a measly two percent each.
Earlier, Facebook announced its earnings report for the fourth quarter of 2016. The social networking giant reported its net income in the fourth quarter increasing to 128 percent to $3.6 billion and revenue climbed 51 percent to $8.8 billion. Advertising sales, Facebook’s main revenue generator, accounted for $26.9 billion of Facebook’s net income in the fourth quarter.
According to the report, Facebook had 165 million active users in India, which is second-largest in the world. The company posted an 18 percent year-on-year user base growth to 1.23 billion daily active users with Asia contributing 396 million users.
Facebook posts ‘strongest’ growth in India thanks to Reliance Jio’s free offers
“In the fourth quarter wanted to call out that we have seen an increase in third party promotional free data plans in places like India,” Wehner said during the earnings call . “So that (free offer) clearly is having an impact in APAC (Asia-Pacific) and India was our strongest growth market (by user base). So that would be something that I would say was a little bit more unique this past quarter,” Wehner added.
Wehner was clearly referring to Reliance Jio’s free offers like Welcome Offer and Happy New Year, under which users get free high-speed 4G data and unlimited voice calls along with bundled apps subscriptions. Even though a new entrant, Reliance Jio’s free offers have already led to a radical change in the telecom industry with rivals being forced to significantly reduce their tariffs.
Already, rival Vodafone, which also happens to be second-largest telco in India, is looking to merge its business with Idea Cellular. Vodafone’s merger decision is believed to be due to Reliance Jio’s free and ultra affordable offers.
Facebook CFO’s observation about Reliance Jio’s contribution to the company’s growth in India comes shortly after a report that claimed thatJio currently has 94 percent mobile data traffic share in India. Now, this brings down other operators such as Airtel, Vodafone, and Idea at a measly two percent each.
Earlier, Facebook announced its earnings report for the fourth quarter of 2016. The social networking giant reported its net income in the fourth quarter increasing to 128 percent to $3.6 billion and revenue climbed 51 percent to $8.8 billion. Advertising sales, Facebook’s main revenue generator, accounted for $26.9 billion of Facebook’s net income in the fourth quarter.
According to the report, Facebook had 165 million active users in India, which is second-largest in the world. The company posted an 18 percent year-on-year user base growth to 1.23 billion daily active users with Asia contributing 396 million users.
Facebook posts ‘strongest’ growth in India thanks to Reliance Jio’s free offers
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