Business News / Mittal won the battle of Airtel-Jio - big blow to Mukesh Ambani

Vikrant Shekhawat : Aug 07, 2023, 05:47 PM
Business News: Reliance Jio is the largest telecom company in the country, there is no doubt about it. Despite this, it is repeatedly getting defeated by Airtel in one case. This fight is not like the 'tariff war' in which Reliance Jio has drowned almost all the telcos in the country, but it is a matter of how to increase the number of postpaid customers, because Sunil Bharti Mittal's Airtel is still in this matter. Mukesh Ambani's Reliance is giving tremendous beating to Jio. But how?

Actually, postpaid customers are always a profitable deal for telecom companies. Compared to prepaid service, the average revenue per user of the companies is better. That's why the emphasis of companies remains on postpaid customers. In return, the customers also get better facilities from the company. At present, Airtel has a hold on the market in the postpaid customer game.

Airtel's premium service came in handy

Reliance Jio introduced its new postpaid plans in March this year. But the company has not got that much response in the market. While on the other hand the number of postpaid customers of Airtel is increasing. The main reason for this is to make Airtel's postpaid service premium. Along with this, the company has strengthened its strategy at the ground level.

Kunal Vora, India head of equity research at BNP Paribas India, says that the postpaid product is a push market product. Companies have to continuously engage with customers so that they convert from premium to postpaid. At the same time, many marketing steps related to retail stores and call centers have to be taken, in which Airtel is currently in the hands.

Airtel added 8 lakh new customers

If we look at the figures from April to June, Airtel has added about 8 lakh new postpaid users. At the same time, their number has not been told by Jio. The company says that most of the customers of its Jio Fiber service are using postpaid plans. According to TRAI data, in April and May, Jio has added 5.9 lakh new broadband users and the total number of such customers has gone up to 90 lakh.

On the other hand, if you look overall, 31 lakh new customers have come to Airtel's account during April-June. While the number of customers of Reliance Jio including Jio Fiber has increased by 92 lakhs.