Reliance Jio Offers; Reliance Jio Now Available For All 4G Smartphones

by Frankie Norman September 9, 2016, 2:37
Reliance Jio Offers; Reliance Jio Now Available For All 4G Smartphones

It said Reliance Jio's entry will be "credit negative" for the incumbent operators, particularly smaller telcos, and will hasten industry consolidation.

The Reliance group - a conglomerate with interests in everything from oil and gas to retail and telecom - says it has invested 1.5 trillion rupees to build the mobile infrastructure. Vodafone India is the frontrunner to acquire Telenor's Indian subsidiary which would boost its spectrum capacity and 4G coverage - putting it in a better position to deliver high value service services to improve ARPU and compete with Jio and Bharti Airtel. The network is available for over 80 percent of India, and Ambani's goal is to offer Jio - which translates as "live life" from Hindi - to 90 percent of Indians by March 2017.

In a letter on 10 August to telecom secretary J.S. Deepak, Reliance Jio called COAI's claims "ill informed and malicious", defending its trials.

The industry now has eight players in the ring beyond Jio; it means five of them have to exit to bring the total down to four.

Speaking to CNBC-TV18, Nitin Soni of Fitch Ratings said the revenue growth of telecom companies is likely to be flat.

Initial reaction, not surprisingly, was positive with many people queueing outside shops in different parts of the country yesterday to get hold of a Jio connection.

Critics have also accused the firm of unfairly undercutting competitors. They couldn't keep out 16-year-old Samarth, who arrived with his mother to apply for a Jio plan. "And it should worry the regulators as well".

Ambani has been out of the Telecom business for some time now. "At that moment customers do not really think about quality".

She said cheap internet access was her key requirement.

However, since the SIM cards are not available in enough quantities, local dealers are seeking to cash in the opportunity, charging the customers between Rs 300 and Rs 600 for SIM cards, which are available for free. Even Jio is reported to have added to the large burden.

Jio has already faced accusations of using unfair means during its testing phase.

The Cellular Operators Association of India (COAI), which represents GSM telcos including Airtel, Vodafone, Idea as well as Jio, on Thursday urged TRAI to call other member telecom companies besides the top three telcos.

Jio has denied these allegations. Did they launch the service only because of the pressure from COAI?

This is just the beginning of what many expect to be a long war of words. There was no cap after which the speed drops.


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