Why Jio Fibre will Impact the Market
Reliance Industries is looking to disrupt the market again. And this time it is the launch of Jio Fiber. Jio Fiber is a fixed-line broadband service with many free services attached to it.
Jio Fiber plans will start at ₹700 per month and can go up to 10,000 per month.
Customers subscribed to Jio Fiber plan will be able to make free calls all across the country and can also avail an unlimited calling pack at ₹500 per month to the US and Canada.
With an annual subscription, Jio fiber is also offering a free HD or 4K LED TV and 4K Set-top box.Premium Jio customers will be able to watch a movie on the very day it gets released while sitting in their home.
Talking about Jio Fiber being 5G ready, Ambani said that Jio’s core and aggregation layers converged network is 5G ready from the day it begins. He added that due to Jio’s converged network architecture, the service can be upgraded to 5G, with a minimal incremental cost.
Jio fiber will commercially begin from September 5 this year and will be completed in a phased manner. According to Ambani, the company has received over 15 million registrations from nearly 1,600 towns. And based on registrations, the company has planned to reach 20 million users and 15 million business establishments in these 1,600 towns. The company is expecting to complete Jio Fiber roll out within 12 months.
The target seems ambitious as the total user base of wireline broadband in the country currently is 18.45 million. BSNL has the largest share at 9.09 million followed by Bharti Airtel which has 2.39 million subscribers. RIL is planning to keep Jio Fiber’s tariff to be one-tenth of the global tariff. With the launch of the fiber network company is ready to launch four more engines of ‘connectivity revenue’, which are the Internet of Things(IoT) all over India, home broadband, enterprise broadband, and small and medium businesses.
Ambani said as part of fiber offering customers have to pay for only one service either voice or data, he also announced that for customers of Jio Fiber call from home to any Indian operator, mobile or fixed, will be free forever.
Jio and Microsoft partnership
Aiming to accelerate the digital transformation in India, Reliance Jio and Microsoft have entered into a 10-year partnership.
This collaboration between the two companies will allow them to use their potential to give a comprehensive set of solutions incorporating connectivity, computing, storage solutions, and other technology services and applications necessary for businesses in the country.
Experts are of the view that Jio’s latest project will have a mixed impact as the targeted market is still in the nascent stage.
RIL’s broadband plus cable service can directly impact DTH (direct-to-home) companies as these companies are unlikely to offer dual services. Analysts are also saying that multiplexes may also face longer-term impact if more movies are available on OTT apps.