New Jio family plan could delay postpaid tariff hikes: Kotak Inst Equities

Brokerage expects rivals to lower add-on connection fee and/or launch lower data allowance family packs at lower price points to retain their postpaid base; move could dilute ARPU by 1-3%

Reliance Jio’s drive to gain market share with its new family plans could intensify competition in the telecom sector, forcing peers to tweak their offerings and delay tariff hikes in the postpaid segment.

On Monday Jio launched its new postpaid family plans starting from Rs 399. Three additional connections will be offered at Rs 99 per SIM. The company is also offering a one-month free trial offer.

Until now Jio had three postpaid family plans at various price points--Rs 599, Rs 799 and Rs 999--offering one to three extra SIM connections. Family plans of rival firms Airtel and Vodafone Idea