Reliance Jio will come with a largely urban network. It will find rural subscribers (30% of industry revenues) out of reach. It will also find the high ARPU customers (Rs800 ARPU subs; 5% of subscriber base and 25% of revenues) very difficult to churn away as they are less price sensitive than the lower ARPU segments. That leaves the urban mid and lower tier subscribers. We feel Jio will consider this as its main quarry especially in light of above mentioned licence expiries, and small telcos are likely to be disproportionately hit.
