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Around 67% surveyed customers in India are willing to use Reliance Jio as a secondary connection rather than a primary connection once the telco stops offering free services in the country, according to a survey conducted by Bank of America Merrill Lynch .
Only 18% surveyed customers said that they will use as primary one when Jio’s free offer ends, and amongst these, 57% said that they will go for Jio’s 400-500 package’ rather than the cheapest one, the survey said.
Among 24% respondents who have not tested Jio, biggest barrier appears to be handset incompatibility/need to upgrade (c. 40%). Long queues are the second-most widely cited reason (31%), while 27% consumers felt they were satisfied with current operator.
The survey said that Jio’s free service is gaining reasonable traction with 26% respondents using Jio as primary SIM and 21% as secondary SIM.
The brokerage’s findings indicated that the 4G entrant would be able to retain majority of customers. Sources say that Jio is unlikely to extend its free service offer beyond March 31, 2017.
The brokerage's September survey demonstrated a high willingness among consumers to try out the Jio SIM. This is borne out in the current survey with over 75% of those surveyed either currently using Jio or have tested on someone else’s connection – up from 39% in September.
“Interestingly, 26% of users are using Jio as primary SIM, which we think is more a reflection of constraints of current handsets where 4G is only available on primary SIM slot. Over 5% consumers have used Jio dongles,” the study found.
More than half or 55% of the surveyed users find Jio speeds higher than that of other telcos in India. Over one-third agreed that speeds were faster but were inconsistent. Just over 10% of those surveyed believed Jio’s data services to be at par or inferior. While over 44% said that speeds have slowed over the last few months, majority feels that the speed is either at least adequate or improving.
“Voice calling” is still an issue with only 22% have no problems at all. 32% users indicated that they use Jio as it is faster and 28% as cheap,” the brokerage’s finding revealed.
Bank of America Merrill Lynch survey indicated that Bharti Airtel customers were least interested in using Jio as a primary SIM. 17% of Airtel users may use Jio as a primary SIM if quality is good, as compared to 41% customers for smaller telcos.
The survey said that Airtel users were most satisfied with their operator at 97.7% against 89% for smaller telcos.
The brokerage said that top three telcos—Bharti Airtel, Vodafone India and Idea Cellular—would offer bundled voice and data service, largely matching Jio tariffs, when the 4G entrant starts charging. “For non 4G consumers --mainly featurephone-- the low denomination separate voice and data tariffs will remain,” it added.
While customer satisfaction is high for incumbents, 28% users find them still expensive.
The brokerage said that Bharti Airtel is trying to create a perception through “marketing gimmicks/new packages that its tariffs are at par/cheaper than Jio”. “In our view, other telcos will follow-up leading to higher competitive intensity,” it said, adding that smaller telcos like Reliance Communications are the most vulnerable as majority of the users with them are secondary SIM consumers and may likely to shift to Jio as their secondary SIM.
The agency also said that Bharti Infratel was well placed to benefit if telcos spend more on improving their coverage with most consumers using Jio as it is faster.
Value for money emerged as the biggest issue reported by consumers with 28% deeming the current offerings expensive. Slow data speed was the second biggest issue, cited by 23% of consumers. Call drops and coverage issue was highlighted by 20% of consumers, the survey revealed.
only 18% customers want to use reliance jio as primary connection when free offer ends: survey, Telecom News, ET Telecom
Only 18% surveyed customers said that they will use as primary one when Jio’s free offer ends, and amongst these, 57% said that they will go for Jio’s 400-500 package’ rather than the cheapest one, the survey said.
Among 24% respondents who have not tested Jio, biggest barrier appears to be handset incompatibility/need to upgrade (c. 40%). Long queues are the second-most widely cited reason (31%), while 27% consumers felt they were satisfied with current operator.
The survey said that Jio’s free service is gaining reasonable traction with 26% respondents using Jio as primary SIM and 21% as secondary SIM.
The brokerage’s findings indicated that the 4G entrant would be able to retain majority of customers. Sources say that Jio is unlikely to extend its free service offer beyond March 31, 2017.
The brokerage's September survey demonstrated a high willingness among consumers to try out the Jio SIM. This is borne out in the current survey with over 75% of those surveyed either currently using Jio or have tested on someone else’s connection – up from 39% in September.
“Interestingly, 26% of users are using Jio as primary SIM, which we think is more a reflection of constraints of current handsets where 4G is only available on primary SIM slot. Over 5% consumers have used Jio dongles,” the study found.
More than half or 55% of the surveyed users find Jio speeds higher than that of other telcos in India. Over one-third agreed that speeds were faster but were inconsistent. Just over 10% of those surveyed believed Jio’s data services to be at par or inferior. While over 44% said that speeds have slowed over the last few months, majority feels that the speed is either at least adequate or improving.
“Voice calling” is still an issue with only 22% have no problems at all. 32% users indicated that they use Jio as it is faster and 28% as cheap,” the brokerage’s finding revealed.
Bank of America Merrill Lynch survey indicated that Bharti Airtel customers were least interested in using Jio as a primary SIM. 17% of Airtel users may use Jio as a primary SIM if quality is good, as compared to 41% customers for smaller telcos.
The survey said that Airtel users were most satisfied with their operator at 97.7% against 89% for smaller telcos.
The brokerage said that top three telcos—Bharti Airtel, Vodafone India and Idea Cellular—would offer bundled voice and data service, largely matching Jio tariffs, when the 4G entrant starts charging. “For non 4G consumers --mainly featurephone-- the low denomination separate voice and data tariffs will remain,” it added.
While customer satisfaction is high for incumbents, 28% users find them still expensive.
The brokerage said that Bharti Airtel is trying to create a perception through “marketing gimmicks/new packages that its tariffs are at par/cheaper than Jio”. “In our view, other telcos will follow-up leading to higher competitive intensity,” it said, adding that smaller telcos like Reliance Communications are the most vulnerable as majority of the users with them are secondary SIM consumers and may likely to shift to Jio as their secondary SIM.
The agency also said that Bharti Infratel was well placed to benefit if telcos spend more on improving their coverage with most consumers using Jio as it is faster.
Value for money emerged as the biggest issue reported by consumers with 28% deeming the current offerings expensive. Slow data speed was the second biggest issue, cited by 23% of consumers. Call drops and coverage issue was highlighted by 20% of consumers, the survey revealed.
only 18% customers want to use reliance jio as primary connection when free offer ends: survey, Telecom News, ET Telecom
