This is how much Reliance Jio will earn from its Prime membership and Rs 303 per month plan
Mukesh Ambani announced a tariff of Rs 303 per month for the 100 million Reliance Jio users, which will include all the benefits of the Happy New Year offer till next year March 31, 2018.
Reliance Industries Chairman Mukesh Ambani on Tuesday unveiled a score of incentives to Reliance Jio users and push for more users to join in their exclusive Jio Prime Membership before March 31, 2017.
Ambani said that Jio users will be able to enroll into Jio Prime membership plan till March 31, 2017. A one year fee of Rs 99 will be charged. All existing and new customers subscribing till March 31, 201 will be eligible to enroll for this Prime membership plan.
Ambani announced a tariff of Rs 303 per month for the 100 million Reliance Jio users under this Jio Prime membership plan. This will include all the benefits of the Happy New Year offer till next year March 31, 2018. This he said brings it to effectively Rs 10 per day for a user.
This means that each customer enrolling for Jio Prime membership will shell out Rs 99 as one time fee for one year and Rs 303 per month for continuation of Happy New year offer. This comes to Rs 3735 per year (Rs 303*12 + Rs 99).
Even if half of existing 100 million (5 crore) customers opt for this Jio Prime Membership, Reliance Jio will earn Rs 495 crore (Rs 99 x 5 crore users) only through membership.
Based on the rates announced, if 25 million (2.5 crore) Reliance Jio users opt for the Jio Prime Membership programme it will earn Rs 247.5 crore (Rs 99 x 2.5 crore users). Coupled with the Rs 303 per month tariff plan it would earn Rs 9,090 crore (Rs 303 x 12 months x 2.5 crore users). This would take the total earnings of Reliance Jio in one year to Rs 9,337.5 crore (Rs 9,090 crore + Rs 247.5 crore).
According to the rates of the membership fees and the tariff, if 50 million (5 crore) users of Reliance Jio opt for the Jio Prime Membership the company will earn Rs 495 crore (Rs 99 x 5 crore users) itself and Rs 18,180 crore (Rs 303 x 12 months x 5 crore users) from the Rs 303 tariff per month for a year. This takes it to a total of Rs 18,675 crore (Rs 18,180 crore + Rs 495 crore) that Reliance Jio will earn in 1 year itself.
If 100 million (10 crore) Jio users go for the Jio Prime Membership then the company will earn Rs 990 crore (Rs 99 x 10 crore users) in March alone and would earn Rs 36,360 crore (Rs 303 x 12 months x 10 crore users) in 1 year from the Rs 303 tariff plan per month. That means Reliance Jio could see a total of Rs 37,350 crore (Rs 36,360 crore + Rs 990 crore) coming in just 1 year.