The company announced that Jio phone’s second version will be available at an introductory price of Rs 2,999. The company claims to have sold over 25 million Jio Phones in one year. Along with this, Jio GigaFiber FTTH was launched to take India’s broadband connectivity up a notch, which will be available for both residential and commercial locations. Starting August 15, India’s Independence Day, the users will be able to register for the Jio GigaFiber. While telecom users are upbeat on the new announcements, here’s what analysts have to say:
Terming the company’s newly launched internet service JioGigaFiber as ‘the next big thing from Jio’, financial firm JP Morgan said in a report, “Our view is, given Jio’s customer acquisition strategy, that the launch pricing should effectively be at a large discount to current broadband and set-top box pricing prevalent.”
Considering Jio’s customer acquisition strategy the launch pricing should effectively be at a big discount to existing broadband and set-top box pricing in the country, JPMorgan said in a report.
“The customer base has grown really well. The data traffic is one of the highest on Reliance Jio. The revenue market share is also rising. In our opinion, Jio will continue to gain revenue as well as market share, putting further pressure on the incumbents. However, there is no new plan that is incrementally disruptive for the mobile sector. JioFiber launch is a significant announcement. That will impact Bharti Airtel’s home segment,” Nitin Soni of Fitch Ratings said.
“The death nail has come for the second round of the sectors ie the cable and direct-to-home companies, like Hathway, DEN Network, and may be for Dish TV as well in longer term, if not now. Ultimately you are giving super house in terms of connectivity and the transmission, where you have all types of facilities available — entertainment, video conferencing, connectivity, etc. This is truly capturing benefits that one can derive from the Digital India by complimenting Jio and retail,” SP Tulsian said.