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30 May 2017

Reliance JioFiber to offer 100GB data for Rs. 500

Will Jio trigger broadband wars now?

Reliance Jio is reportedly considering the commercial launch of its broadband service JioFiber after Diwali this year.

Sources stated that Jio is considering a base pack of 100GB data for just Rs. 500, nearly half the price of what competitors are charging. Analysts foresee another price-war in the making.

However, it has not been corroborated by officials from Jio yet.

In context

Will Jio trigger broadband wars now?
The state of India's broadband market

Indian broadband

The state of India's broadband market

Compared to cellular services, the Indian broadband market is very small, with less than 20 million customers using fixed line broadband services.

Data suggests that over half of these connections are from state-owned Bharat Sanchar Nigam Limited.

Analysts expect Jio to use the same disruptive strategies it employed in the mobile markets to the broadband segment.


JioFiber being tested in India

Recently JioFiber launched preview offers in Mumbai, Delhi-NCR, Ahmedabad, Jamnagar, Surat, Pune, Vodadara and a few more cities. According to the company the testing is underway in 10 cities.

JioFiber's network is said to carry up to 100Mbps speeds, similar to those offered by other broadband players.

The company is planning to expand its network to 100 cities by December 2017.

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JioFiber's competitors

Sources stated that BSNL and Bharti Airtel are the primary competitors for JioFiber. Both service providers have upgraded their data offers and speeds for their customers. However, analysts speculate that they would still have to deal with the disruptive pricing on offer by JioFiber.

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