Author Topic: How Reliance Jio Launch will Lead to Another Price War ?  (Read 2775 times)

wiredlife

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How Reliance Jio Launch will Lead to Another Price War ?
« on: February 09, 2015, 02:10:44 PM »
Reliance Jio'saspirations and game plan extends beyond the mobile to include content and video to the home; so to try and assess a business case centering on just mobility may be placing too narrow a lens on the analysis. The relevant question to ask is whether RJio, with its deep pockets and staying power, can alter the industry picture on pricing, margin, capex, data adoption, spectrum payouts, quality of experience/network profile in a manner adverse to incumbents while it competes.

For sure, Tata has poured in enormous capital/investments over the past decade with little to show for all of it (so, we are not making a case for RJio?s success) ? that said, didn?t Tata along with Reliance Communications (RCom) contribute to severe voice pricing erosion that hurt the India telco industry? Why can?t RJio do the same for data and spoil its currently attractive economics for incumbents?