Reliance Jio 4G gaining share from ALL operators

The industry revenue figures for the Jun-17 quarter recently released show headline improvement in market share for incumbents – but that is not representative of customer wallet as Jio has not reported revenues.

While on a Gross Revenue basis, 35-45% of Jio’s market share gains has come from top-3, the improving traffic mix for Jio means ~60% of market share gains on AGR level are from top 3. We believe Airtel has lost at least 80-200 bp market share since Jio’s launch, while Vodafone+Idea have lost 160-240 bp.

Jio is yet to report revenues from the telecom business, and we believe the TRAI reporting primarily captures only the interconnect payments and (more…)

Reliance Jio 4G LTE / Small Cell Deployment indicate Mobile Data Pricing at 50% Discount to Airtel

Jio 4G LTE Small Cell DeploymentDue 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 (more…)

Reliance Jio Phased Launch in Next 3 to 6 Months

Reliance Jio Launch IndiaReliance Jio Infocomm wishes to integrate 800Mhz Spectrum from Reliance Communications before launching commercial services in a phased manner spanning over the next 3 to 9 months. The next 2 months will see upscaled trials (beyond employees), to test scalability and coverage. Their biggest advantage is the pan-India 800 Mhz spectrum for LTE, while none of the incumbents are launching LTE on sub-Ghz spectrum.

Reliance Jio is unlikely to use the 2G/3G network of even roaming partners like RCOM/BSNL, their network coverage needs to be near-perfect (more…)

How Akash Ambani is Positioning Jio Mobile Data LTE Offering for 1 Bn Consumers?

Akash Ambani's Jio Mobile Data StrategyReliance Jio Infocomm launch still looks to be a few months away. This has been the ongoing dilemma for the past few years now, and the uncertainty is not helping anyone. Management attributed this to a combination of some more testing to be fully-ready for all data applications, being able to integrate 800MHz, etc.

What is Akash Ambani’s Mobile Broadband Strategy for 1 Billion Consumer Market ?
Jio is basing its approach on poor data speeds and low internet penetration in India, and expectation of high growth over the next 10 years in data traffic, especially video (more…)

Why LTE – Voice Fallback Crucial for Reliance Jio ?

Reliance Jio VolTEFew countries offer both TD and FDD simultaneously – US and Sweden are the two markets. LTE ecosystem is well developed across multiple bands ranging from 800/900/1800/1900/2100/2500/2600MHz. In fact, 2300MHz doesn’t appear to be a very popular band amongst the sample set of 18 countries.

LTE was launched on an average seven years after 3G launch and when data contribution to revenue averaged ~27%. Assuming Reliance Jio’s launch by end of CY15, the data contribution in India would be ~20%. While it may seem slightly early, we believe the key is the development of the right (more…)

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