Reliance JioFiber to Offer Broadband Plans with 100GB Data at ₹500 in 100 Towns
Toshi Tandon last edited by
Reliance Jio Infocomm Ltd is working towards a commercial launch of its home broadband operations. As per the reports, Reliance Jio is planning a Diwali launch (October 19th) something like last year Jio launch that triggered the mobile price war.
The company is planning to launch PAN-India services by making itself available in at least 100 cities and towns across India. Regarding the pricing strategy, JioFiber plans start from ₹500 with 100GB data. This is something that the incumbent players should worry about. Currently, high-speed 50GB data is offered at ₹1000.
Though home broadband is a small market, the average user pays much more for a fixed-line home broadband connection. The Bharti Airtel’s Average Revenue per User is about ₹1064 against ₹162 in the mobile data business. Similarly, if one considers the state-run telecom BSNL it has about 20 million wireline broadband users whereas 200 million wireless broadband users.
JioFiber Disruptive Pricing:
When the incumbent telecom player’s balance sheets are still bleeding, the JioFiber’s inaugural pricing will definitely make an adverse effect. Mr. Rohan Dhamija, Partner &South Asia Head, Analysys Mason, said: “Jio’s pricing will be absolutely disruptive and the company’s Fiber-to-the-Home technology to be superior to rival’s digital subscriber lines.”
Currently, Reliance JioFiber has rolled out its beta services in at least 10 cities including Gurgaon and Noida. The network is capable enough to carry data speeds up to 100 Mbps. Bharti Airtel is claiming to offer similar broadband speed through Vectorization Technology. Recently, Airtel started offering 1000 GB data to Delhi-NCR users with its select plans. Jio made it offer double data benefit on the existing home broadband plans.
Weak Competition from Incumbent Players:
Though BSNL enjoys the major share in home broadband segment, its reach is limited to 10 million users. BSNL using the similar FTTH technology offers 175GB data at ₹2641. However, the speed is just limited to 8 Mbps only. As per the data revealed by TRAI, the second spot Bharti Airtel has about 1.95 million connections.
Reliance Jio is establishing itself as a hands-on service provider by identifying high-rise residential apartments and commercial establishments to expand its broadband operations in 100 cities and towns. All you need to do is pay a refundable security deposit for the company’s affordable Wi-Fi router packed with premium features.