Akash Ambai led Reliance Jio Infocomm is all set for public launch within the next couple of months. Before we dive into the details on how and why Airtel / Vodafone are the most vulnerable operators let us quickly look into data with ears on the ground.
Jio will launch with about 75,000 Cell Tower Locations and about 20,000 Small Sites / WiFi Spots. Target Locations of Launch – Metro Cities, Urban Centers and Semi-Urban Towns. Rural is excluded in the initial public launch and there are no Jio 4G signals in rural areas.
With such a Network Arrangement, Jio’s addressable market is 400 Mn Wireless Consumers in the above said geographical areas. How are these consumers stacked up ? (more…)
The TRAI’s recommended price – 20% premium to an overpriced 900MHz band – has made it a hard band to sell. The 900MHz band spectrum pricing (based on 2015 auction, where operators were fighting for business continuity) was result of overbidding. The amount of spectrum in the band is also limited, which further pushed up prices. However, with the availability of seven blocks, the 700MHz band will find limited takers at the recommended price.
Industry leader Airtel has a pan‐India 3G spectrum (except Kerala) and 4G spectrum is 14 circles. It has multiple options to add capacity spectrum (more…)
Reliance Jio has set an ambitious target of 100 Mn Subscribers in 100 days. We are skeptical about the same and Jio may achieve this number in a Year. Such an aggressive campaign would mean the company would have to seed at least 120 mn TD-LTE/Vo-LTE smartphones in the market to gain 100 mn subs.
While we think that device subsidies, cheaper tariffs and aggressive marketing would help Jio gain subs, we remain unsure how many subs will continue to stay with Jio over the longer-term. In our view a consistent good quality network, continued value proposition and consumer trust will be necessary for consumers to stay with Jio’s network.
Unlike a voice offering that just needs inserting a SIM card, for data offering a consumer needs a lot of hand holding for (more…)
Over the last 18 months Reliance Jio’s has been on infrastructure, technology, and rollout milestones, amongst others. With the soft launch for employees having started, we look beyond the basic infrastructure and into product strategies.
RJio’s 4G network ourselves, is on par with incumbents in the urban areas, but is lacking in rural areas (maybe have roaming arrangements). Importantly, VoLTE works seamlessly in interconnecting with regular mobile/fixedline networks. The speeds are quite impressive, but remember it is also an empty network! Reliance Infocomm was reaching to masses however this time the strategy is exactly the opposite – Reach High End Customers with Unmatched Mobile Broadband Offering.
The biggest difference in RJio’s business model (more…)
Last mile connectivity is the biggest challenge for 4G since the tower density needs to be much better than 2G/3G due to signal strength concerns. This is complicated the number of agencies (municipalities, housing societies, offices, etc) Jio has to seek approval from for laying infrastructure with minimum disturbance to existing ecosystem and managing the rhetoric around radiations.
As we write this, large parts of Mumbai have seen the laying of optical fibre cables by Jio. Further, in congested areas where telecom towers are difficult to put up, Jio has put up mini-towers (see below). Since they can be put up on existing street-light poles, traffic junctions, footpaths, etc the entry-barriers are low, both in terms of (more…)