RJio tariff hike: Near-term relief for incumbents

Move is positive for sector though it doesn't indicate pricing power as even at current rates, tariffs are attractive compared to incumbents

Reliance Jio’s (RJio) revision of tariffs, which includes a reduction in the validity period, is a positive for the telecom sector and will ease some pressure off the incumbents. The company has reduced the validity period of its Rs 399 plan, considered its flagship, to 70 days from the earlier 84 days and introduced a new plan in its stead at Rs 459, with similar benefits. 

The new plan is 15 per cent more expensive than the previous plan. This is the second (upward) revision for RJio tariffs after it became a paid service from April 1. The last revision