UBS has gotten done a market survey on the hoopla around the Reliance Jio Infocomm 4G LTE launch. The findings are not too encouraging for the Ambani family.
The market is overestimating the disruptive nature of RJio's launch. The survey findings support our view that RJio's launch is unlikely to be disruptive as: 1) 6 out of 10 customers indicate a lack of interest in RJio; 2) RCom, Tata DoCoMo and BSNL subscribers are more inclined to try RJio's services than the market leaders' subscribers; 3) 73% of customers who want to try RJio's services said it will only be on their secondary SIM cards; and 4) the top three reasons to consider RJio are better coverage, better call quality and attractive data prices/better speeds. However, we believe on-the-ground experience may be different as RJio lacks an underlying 2G/3G
network, which will impact its ability to offer 'better quality' voice services, while its pan-India holdings of 2300MHz spectrum (poor propagation characteristics) may limit its ability to provide better coverage.
