Reliance Jio Infocomm has acquired a MSO license that allows it operate PayTV network. Channel checks also suggest RJio laying optic fibre to kerb/homes. The residential division is likely to target two revenues streams ? PayTV and home Internet.
While Reliance Jio is planning fibre-to-home solutions especially for triple-play services, we believe its 2300MHz spectrum can be effectively utilised to provide home Internet using fixed-wireless devices. We expect the packages for home Internet typically to have large or unlimited usage buckets (15-20GB and above). The 20MHz TD-LTE spectrum has high data capacity, and it is well suited for home-Internet application. We forecast RJio to acquire 25m homes at an ARPU of Rs 440 by FY20E for home Internet. We believe this is feasible given the wireless nature of the last mile.
Home Internet will aid RJio to significantly ramp up its network scale, which will in turn reduce its per-unit data costs to support a competitive cost position.
