Data usage for Reliance Jio was ~25x more than average broadband usage/month in India and ~4x more than data consumed for all operators put together. This indicates the high data usage pattern among users if pricing is not a constraint.
Reliance Jio indicated that ~8% of its towers have faced congestion, with ~20% subscribers consuming disproportionate amount of data. To tackle this, the company will allow 1GB of free data daily at high speed and also decongest traffic on affected towers.
We see RJio's entry as a battle of capacity rather than pricing, as it will be challenging for existing operators to accommodate the heavy traffic even if they match RJio’s high-value price plans. RJio’s significant investments in spectrum/network and vacant cell sites will make it challenging for existing operators to contest in a highly capital-intensive industry