One of the Insiders is tipping us that Reliance Jio's initial strategy is likely to focus on getting the high-ARPU subs using high-quality data proposition as a calling card. Higher-ARPU customers would be the segment initially drawn to the 4G promise. RJio will likely provide data at much lower unit price (INR/GB) to drive higher consumption causing compression in data pricing for the incumbents. Notably, the incumbents need to make capex investments to increase their data capacity, while RJio has built a large network, which it will likely focus on filling.
In this backdrop, Airtel has already accelerated it 4G roll-out and launched in 296 cities/towns. Idea plans to launch 4G services in 10 circles in 2016 and it has already started launching in key cities. Idea has increased its capex guidance materially to accommodate for that. Vodafone is also likely to ramp-up 4G launch in early 2016.
