Telecommunications & Technology
Telecom Analysts conducted sales and distribution channel check to understand consumers’ response to RJio’s recently launched Welcome Offer, wherein users can access free pan-India voice and data services.
Jio 4G SIM Cards are currently distributed only via the Reliance Retail channel Only. Distribution in mom-and-pop and modern stores will be started in 15-20 days. RJio has mapped 2.5lac SIM distributors, and over the coming quarters, it is expected to reach closer to the current number of
Reliance Jio announced it has filed tariff plans with TRAI. These would be applicable from 1st Jan-17, post-expiry of the free service offer, renamed as Jio Welcome Offer . Akash Ambani appears to have mastered the lessons of Chinese military strategist Sun Tzu’s The Art of War and has hit Airtel, Vodafone and Idea where it matters most – Voice Revenues which account for 75% of their Billing.
We do not think Jio’s plans would have a significant impact on mass mobile broadband data market with ARPU of Rs200 400, because (as per Jio media release), there are no monthly packs
Akash Ambani managed Reliance Jio Infocomm has launched VoLTE service [Mobile Voice] on a unique ecosystem (850 + 1800/2300MHz) along with 4G Mobile Broadband. A very small number of smartphones will currently work on the Jio ecosystem (<5mn), as <3% of the smartphones have VoLTE capability. However, Reliance insiders say that, Jio has a large inventory of LYF branded phones. In order to encourage VoLTE penetration, we see the possibility of Jio subsidizing the LYF handsets, which may act as a catalyst for increased smartphone growth.
Currently there is awareness about 4G phones and consumers are demanding future ready smartphone (i.e. 4G over 3G), there
Due to increased demand in urban areas, a majority of the data rollout is happening through Small Cells. Compared to BTS, small cells costs 30% less to Huawei; however, small cells are selling at the same price vs BTS of nearly INR 1.0-1.2mn, including ancillary cost, due to higher demand. Small cells provide one-third of coverage compared to BTS but due to lower space requirements, they suit the urban network rollout.
Reliance Jio’s network investment and spectrum holdings provide it significantly higher capacity than existing operators, thereby allowing Jio to reduce data rates/MB to less than 50% of the current market pricing led by Airtel. The company’s investments are long term in nature, and not much in the way for short-term