<p class="bodytext">The new post-paid Rs 199 plan announced by Reliance Jio is expected to hit revenue of competitors marginally and may trigger tariff war in the segment, according to market analysts.</p>.<p class="bodytext">"Move could lead to another brutal tariff cut in the post-paid regime, hurting incumbents further: Jio's post-paid tariffs are sharply lower compared to the current tariff plans offered by incumbents," JP Morgan said in its report.</p>.<p class="bodytext">Jio on Thursday announced a new post-paid plan starting from with monthly rental of Rs 199 and an ISD calling service at a starting price of 50 paise per minute.</p>.<p class="bodytext">"International tariffs offered by Jio are quite competitive and we could see downward pressure on such tariffs for incumbents. However, even in a scenario where we assume 10-15% of postpaid revenues are from international calls, and international tariffs get cut by 50 per cent, the impact on overall revenue of incumbents is likely to be less than 2%," Goldman Sachs said.</p>.<p class="bodytext">The subscription of the Jio's Rs 199 plan will start from May 15. At present, the lowest monthly rent of Jio post-paid plan is Rs 309.</p>.<p class="bodytext">Customers opting for Rs 199 will not require to pay any security deposit and they will get unlimited free voice, sms and 25 GB data at 4G speed.</p>.<p class="bodytext">The company also announced international roaming service with outgoing calls at Rs 2 per minute onwards.</p>.<p class="bodytext">CLSA analysts Deepti Chaturvedi and Akshat Agarwal in their report said 5 per cent of industry subscribers are on post-paid service.</p>.<p class="bodytext">Post-paid subscribers, although limited to 5-6% for Bharti Airtel and IdeaVodafone, account for around 20% of their mobile revenue, the CLSA report said.</p>.<p class="bodytext">"Jio's Rs 199 per month post-paid tariff plan is a sector negative and will delay the Arpu recovery for the sector," CLSA said.</p>.<p class="bodytext">According to Morgan Stanley, the new plans of Jio targeting post-paid customers may impact 1% of Airtel's mobile revenue in case the telecom major tries to match the tariff.</p>.<p class="bodytext">"...running a sensitivity analysis on whether Airtel were to match the Rs 199 tariff, for every 10% of the postpaid subscriber base that downgrades its tariff plan, the impact on Airtel's Indian wireless revenue would be 1 per cent," Morgan Stanley report said.</p>
<p class="bodytext">The new post-paid Rs 199 plan announced by Reliance Jio is expected to hit revenue of competitors marginally and may trigger tariff war in the segment, according to market analysts.</p>.<p class="bodytext">"Move could lead to another brutal tariff cut in the post-paid regime, hurting incumbents further: Jio's post-paid tariffs are sharply lower compared to the current tariff plans offered by incumbents," JP Morgan said in its report.</p>.<p class="bodytext">Jio on Thursday announced a new post-paid plan starting from with monthly rental of Rs 199 and an ISD calling service at a starting price of 50 paise per minute.</p>.<p class="bodytext">"International tariffs offered by Jio are quite competitive and we could see downward pressure on such tariffs for incumbents. However, even in a scenario where we assume 10-15% of postpaid revenues are from international calls, and international tariffs get cut by 50 per cent, the impact on overall revenue of incumbents is likely to be less than 2%," Goldman Sachs said.</p>.<p class="bodytext">The subscription of the Jio's Rs 199 plan will start from May 15. At present, the lowest monthly rent of Jio post-paid plan is Rs 309.</p>.<p class="bodytext">Customers opting for Rs 199 will not require to pay any security deposit and they will get unlimited free voice, sms and 25 GB data at 4G speed.</p>.<p class="bodytext">The company also announced international roaming service with outgoing calls at Rs 2 per minute onwards.</p>.<p class="bodytext">CLSA analysts Deepti Chaturvedi and Akshat Agarwal in their report said 5 per cent of industry subscribers are on post-paid service.</p>.<p class="bodytext">Post-paid subscribers, although limited to 5-6% for Bharti Airtel and IdeaVodafone, account for around 20% of their mobile revenue, the CLSA report said.</p>.<p class="bodytext">"Jio's Rs 199 per month post-paid tariff plan is a sector negative and will delay the Arpu recovery for the sector," CLSA said.</p>.<p class="bodytext">According to Morgan Stanley, the new plans of Jio targeting post-paid customers may impact 1% of Airtel's mobile revenue in case the telecom major tries to match the tariff.</p>.<p class="bodytext">"...running a sensitivity analysis on whether Airtel were to match the Rs 199 tariff, for every 10% of the postpaid subscriber base that downgrades its tariff plan, the impact on Airtel's Indian wireless revenue would be 1 per cent," Morgan Stanley report said.</p>