The demonetisation drive and a slump in smartphone sales are likely to have a meaningful impact on Reliance Jio Infocomm's entry strategy, according to a report by research firm CLSA. The agency said that the 4G entrant is now expected to extend free services beyond December.
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"Even before demonetisation, issues with network optimisation and quality had raised the risk of extension of promotions beyond December 2016 by Jio,” CLSA said in a report.
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The Mukesh Ambani-led telco, which had launched commercial services on September 5 with the launch of “Welcome Offer”, is aiming to get 100 million customers, which is equivalent to about 38% of market leader Bharti Airtel’s 260 million subscribers in the country.
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Jio, which launched commercial operations on September 5, will stop providing new customers with its welcome offer after December 3, the end of the 90-day period permitted for introductory offers after their launch.
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The 4G entrant is offering free voice and capped data services along with free access to its digital services like Live TV, Video On Demand and music service and cloud storage.
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