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The 41st Annual General Meeting of Reliance Industries (RIL) saw the entire conversation centered on the disruptions that Jio was going to cause this time around. While telecom players have breathed a sigh of relief in the absence of further tariff cuts, the move has shifted to fixed broadband services. RIL President Mukesh Ambani has announced the launch of Jio GigaFiber, Jio's fiber optics for home and fixed broadband services, as well as new offers for JioPhone customers. Following the initial registration, the company, which will launch the service (Jio GigaFiber) from August 15, will decide on the beginning of the deployment of services.
"Your company has already invested more than 2.5 trillion rupees to create a state-of-the-art digital infrastructure to provide mobile and broadband connectivity across the country, with the largest fiber footprint We will now extend this fiber optic connectivity to consumers, retailers, small and medium-sized businesses, and large enterprises simultaneously in 1100 cities to deliver the most advanced fiber-based broadband connectivity solutions, "said Mr. Ambani.
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The Wired Broadband Arm, Has Already Started Offering What It Claims to be the ultra high-speed fiber-to-the-home (FTTH) broadband connections with 1.1 terabytes (TB) of free data at a speed of 100 megabits per second (Mbps) in The company claims to have deployed 300,000 kilometers of fiber optic network in India and aim to cross 50 million homes.
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Analysts are not surprised at the target given the potential and presence of Reliance Jio fibers. The number of wireline broadband subscribers is set at only 18 million out of a total of 420 million broadband subscribers, a penetration of less than 10% of households in the country. Similarly, there are 68 million DTH subscribers, which indicates a household penetration of less than 30%. According to Harsh Jagnani, Area Manager and Vice President, Corporate Ratings, ICRA, "The small base, as well as rapidly growing content and improved bandwidth, translate into good growth potential for these services , in particular the fixed broadband.
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The launch of broadband home services is expected to increase competition for both home and home service providers cable services. Jagnani of ICRA said: "As was the case in wireless phone services, the input of Reliance Jio is expected to exert downward pressure on prices.It is particularly the case in the domestic broadband industry, which has many small players who would struggle to compete in an environment of intense competition and low pricing power. "
The biggest losers in the trade Thursday. While Hathway Cable Datacom tops the list of losers down 15.81 percent (down 18 percent intraday), Den Networks slipped 10.13 percent.
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While the price would be attractive in the initial phase, badysts believe that as was the case in the mobile services, they should stabilize after a few quarters. According to Mayuresh Joshi, fund manager, Angel Broking: "Prices will have to be kept competitive because the investment has been made and the need to generate an adequate return on investment. Given that for the main players in broadband, the average revenue per user is 650 rupees per month, the price of JioGigaFiber should be around 500 rupees, say badysts.
The company announced that the second phase of its 4G JioPhone 2 feature phone will cost Rs 2,999. This will be available to the 25 million JioPhone customers, who wish to exchange their phones, for Rs 501.
"Even after meeting the needs of our more than 215 million customers, the use of network capacity Jio is less than 20 percent .This means that we can multiply our customer base without additional investment, "said Mr. Ambani addressing the shareholders.
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In addition, the company is deploying JioPhone specific versions of popular apps like Youtube, Whatsapp and Facebook on public demand. Analysts see this as a way to To attract the most intelligent segment of the digital and ambitious in the lower portion of the budget while helping to push the consumption of content.
"With the range of services introduced, Jio stands somewhere between Android and Apple, "said Niel Shah, director of research at Counterpoint Research.
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Fiber services will be targeted towards a full range of entertainment and home services from Jio's portfolio , including JioTV (requires a Jio Set Top Box and Jio Remote), games and digital shopping as well as connected devices from the Internet of Things.
Rajan S Mathews, general manager of the Association of Cellular Operators of India, said: and offers mobile services across the country. In addition, it will encourage other market players to deploy their FTTH technology faster. "
With the entries of Urvi Malvaniya
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