Jio to aggressively gain MSME subscribers

NEW DELHI: By offering a bundled connectivity plan at 1/10th the existing price (Rs 15-20K/month) in the market, Jio is looking to expand the addressable market in the MSME segment. As per a report by BofA Securities, Jio is looking to replicate mobile traction on MSME front. "Amongst the 50 million MSME, we consider 15-20 million to be the addressable market for this offering currently. Over time with rising GDP/capital and recent focus on the government's "Make in India" initiative we expect room for the addressable market to expand," the report said.

"By offering a bundled connectivity plan at 1/10th the existing price (Rs 15-20K/month) in the market, Jio is looking to expand the addressable market," it added.

"We note that the current SME market is underserved with cos like Tata Teleservices, Bharti focusing more on the larger enterprises. In our view these offers don't have much impact on competitors like Bharti as no players address this market effectively. One of the reasons the SME market is underserved is because these merchants are notoriously difficult to monetize and are a very price sensitive base," it said.

On the positive front, Covid has accelerated the digital adoption by these merchants and they are more open to digitizing their business. "We expect the traction to be gradual from this offering & don't expect it to contribute meaningfully to RIL's consolidated revenue/EBITDA," the report added. (IANS)

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