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. Reliance Industries has the potential to disrupt the retail broadband segment and open up new digital channels for the broadband segment of the business, "said India Ratings in a report.
He indicated the level of impact on MSOs. and satellite distribution players will depend on their geographic diversity with respect to subscribers, the relative attractiveness of the market and current rates and service offerings.
The impact will be visible only for the 2019-2020 fiscal year even though the deployment of the service is expected to come on August 15 this year. Jio's aggressive stance for market penetration will be "negative" for existing players, he said.
RIL announced Jiogigafibre, the broadband offer, at its general meeting last week but details such as prices are not yet revealed. The company plans to launch the offer in 1100 cities
. The entry of Jio on the stock exchange destroyed the telecommunications sector, resulting in mergers, bankruptcy filings, market withdrawals and profits plummeting for entrenched players. Jio made his voice heard, which provided more than 70% of revenue, for free, and began by offering free services and then announced aggressive plans.
The agency said that penetration rates are low in India compared to other countries. 7% of 290 million households have fixed broadband access and 180 million TV households. He said the Jio target of 50 million households is only 18 percent of households, and "achievable".
At the current monthly broadband rate of Rs 500-600 per household, the potential market size for 50 million households could be 30,000-36,000 crore, a significant portion of which could be exploited by Jio, he says.
Last mile connectivity will be a challenge for the country's largest enterprise in deploying fiber-based broadband offerings. deployment strategy that Jio is planning.
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