Jio to spur 4G growth in India: experts

Jio to spur 4G growth in India: experts

With the entry of Reliance Jio, the skyrocketing Internet data prices are slated to dip substantially in India.

Mumbai: Reliance Industries (RIL) chairman Mukesh Ambani announced Jio tariffs at the company’s annual general meeting (AGM) on Thursday. The offer, which was being tested across the country for the past few months, launches on September 5.

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As Jio releases officially, industry telecom experts and users said the introduction of the high-speed broadband service will push 4G growth in India and compel other telcos to introduce cheaper plans.

India Rating and Research (Ind-Ra) expects Jio tariff plan to intensify competition “which will squeeze the market share, EBITDA margins and credit metrics of incumbents.”

“Large telecom companies including Bharti Airtel, Vodafone India and Idea Cellular have already undertaken pre-emptive measures such as price cuts for higher data volumes at former price to retain its customers,” said Tanu Sharma, Associate Director – Large Corporates, India Ratings & Research.

The agency said Jio would reduce data price points by 30 to 40 per cent, forcing a drop in skyrocketing Internet data prices, charged by major telcos in India.

Senior Telecom Analyst at Counterpoint Research, Tarun Pathak, said, “The entry of Jio in the market will prove to be an inflection point when it comes to data usage.”

He said users were earlier limiting their data consumption needs due to data caps and pricing. But Reliance Jio has brought down the average data pricing by 10x levels.

Apart from making the full package (Jio’s Data, Voice, Video and the full bouquet of Jio applications and content) free till December 31, Reliance will offer users free voice calls using IP-based network, according to a company spokesperson.

In terms of data, it is slated to offer 1GB data for Rs 50; five times less than the average price of data packs offered by other major telcos. The company has same has filed the data tariffs with TRAI yesterday for approval.

 

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Source By Deccanchronicle

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