Mukesh Ambani’s Jio wants to increase data prices to ₹20 per GB

• Jio wants to increase data prices in two to three tranches to minimize consumer shock.
• Currently, Jio offers 4G data at ₹3.6 per GB.
• Jio also wants the increased data prices to be applied uniformly across all tariffs and segments.

After Vodafone Idea, it is now Reliance Jio’s turn to request for an increase in data prices. Mukesh Ambani-led Jio wants to increase data prices to ₹20 per GB, from the existing price of ₹15 per GB. Jio suggested TRAI that the prices be raised over a course of six months to minimize the impact on customers. It also requested a floor price for data prices.

Earlier last month, $4 to the Telecom Regulatory Authority of India (TRAI) to increase data prices to ₹35 per GB, in addition to a monthly connection fee to help cover its adjusted gross revenue dues of ₹53,000 crore.

According to a $4 by ET Telecom, Jio proposed the minimum floor price be raised to ₹20 per GB in two to three tranches to minimize the price shock for consumers. This could result in an increase by up to 461%, which could lead to an industry-wide spike in prices.

Plan	Validity	Present cost per GB	Proposed cost per GB	Increase
₹599 - 2GB per day	84 days	₹3.57	₹20	461%
₹349 - 3GB per day	28 days	₹4.15	₹20	381%
₹555 - 1.5GB per day	84 days	₹4.40	₹20	354%
₹399 - 1.5GB per day	56 days	₹4.75	₹20	321%

New minimum floor price to aid the distressed telecom sector

In its letter, Jio noted that the increase in the minimum floor price will prove to be an aid to the distressed telecom sector. This should come as a pleasant surprise to Airtel and Vodafone Idea which have been hit by adjusted gross revenue dues of ₹36,000 crore and ₹53,000 crore respectively.

Jio also proposed that the new minimum floor price should be implemented uniformly across all tariffs as well as individual and corporate segments.

Jio’s 4G prices are still the lowest in the industry

While data prices have increased across the board after the $4, Reliance Jio still offers the lowest 4G data prices in the country.

Here is a quick comparison of the most popular 1.5GB data per day plans from Jio, Airtel and Vodafone Idea:

Company	Price	Cost per GB
Reliance Jio	₹555	₹4.40
Airtel	₹598	₹4.75
Vodafone Idea	₹599	₹4.75

It is worth noting that while Airtel and Vodafone Idea provide free voice calls to all networks, Jio charges ₹0.06 per minute for non-Jio calls. Essentially, the gap between Jio and the other two telcos is narrow now.

See also:

$4

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