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TLDR: Jio upset the status quo, for now.

• addicted 8y ago
  I think the argument that Jio’s prices must necessarily go up is suspect. For one thing, the article does not present any reason this should be the case, other than prices being higher before Jio. But the other is that Jio’s business model is equivalent to Xiaomi’s. For Xiaomi, the phones are sold at a price that basically recovers costs, so they can make money off services. Jio is basically doing the same thing, only using its network instead of the hardware as a subscriber acquisition strategy. It’s very possible that the strategy may not work, but if it does (and the article provides no evidence it won’t, in fact, it reveals that Jio is actually making more money per subscriber than the average telco), then there is no reason to believe prices will need to go up.
  • devoply 8y ago
    In an economy of very poor people it's possible that having dirt cheap prices leads to more profit overall. In economies where people have money it's guaranteed to go up because it's essentially leaving money on the table.
    • addicted 8y ago
      Which makes the article’s claim that prices will go up even more unlikely.