New Delhi: Reliance Jio<\/a>’s new tariff plans can address 15-20 million customer base among 50 million underserved small enterprises and accelerate digital adoption as companies like Tata Teleservices<\/a> and Bharti have so far focused on larger enterprises.
“One of the reasons SME market is underserved is because these merchants are notoriously difficult to monetize and are a very price sensitive base. On the positive front, Covid has accelerated the digital adoption by these merchant and they are more open to digitalizing their business,” Bank of America<\/a> (BofA) said in a note released Wednesday.
Brokerage firm UBS estimates that, with the new offerings, Jio<\/a> can potentially add 7.5 million subscribers including 3 million MSME fiber users with segment ARPU (average revenue per user) in the range of Rs1100-1200 per month.
According to BofA amongst the 50 million MSME, close to 15-20 million can be the addressable market for this offering currently, which will expand over time due to government’s focus on “Make in India.”
“By offering a bundled connectivity plan at 1\/10th the existing price (Rs 15-20K\/month) in the market, Jio is looking to expand the addressable market,” Bank of America (BofA) said in a note released Wednesday.
However, the brokerage expects the traction to be gradual from this offering and don’t expect it to contribute meaningfully to Reliance Industries<\/a>’ consolidated revenue\/earnings.
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