Mobile tariffs will not increase for a year and a half, the effect of Reliance Jio's 4G phone launch

Reliance Jio's bet of completely converting 2G customers to 4G in the country will have a big impact that the sword of increasing tariffs on the heads of mobile customers has been removed for the time being. Many research agencies in the country have said this in their reports released on Tuesday. A day before, Reliance Jio launched the scheme of giving 4G phones for Rs 999.
In this regard, JP Morgan has said in its report that this move of Reliance Jio will prevent Airtel, the country's second-largest mobile service provider, from increasing call and data charges for at least one and a half years. Apart from this, big broker agencies like Citigroup, Morgan Stanley, and Jefferies have also said that how Reliance's new plan will not increase mobile tariffs in the near future.
According to the report, Airtel has recently increased the 2G tariff to Rs 155 for the lowest-priced plan of Rs 99. Due to this, Airtel had high hopes of increasing earnings from this price hike. Since Jio was not yet on the 2G network, Airtel was hoping that its 2G customers would not go anywhere despite the tariff hike. But now Jio has put a dent in Airtel's plans after the launch of the Bharat 4G phone.
Reliance Jio claims that it will take 100 million 2G customers into its network. It has been said that Airtel is already behind Reliance Jio in premium mobile service and now a big challenge has arisen for it in 2G service as well.
According to the research report of Citigroup, the new phone of Reliance Jio is of worse quality than the phone launched in the year 2017. But the offer being given will surely impress those customers who are planning to buy a new feature phone.
20 percent of Bharti Group's total revenue comes from 2G customers. While the 2G segment accounts for 30 percent of Vodafone's total revenue. Reliance Jio's share in feature phones can increase rapidly.