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Reliance JioFiber Unlikely To Disrupt Broadband Space: Report
Reliance Jio has finally announced its much-awaited plans for the JioFiber, which are slightly cheaper than the plans offered by other broadband players. But, now a report by brokerage firms points out that JioFiber is unlikely to make any disruption in the broadband space.
As per a new CLSA report quoted by Economic Times, the newly launched broadband plans are "13-23 percent cheaper versus others in absolute terms, but the data allowance is 20-40 percent lower, due to which JioFiber is effectively 8-27 percent costlier than Bharti Airtel."
The Mukesh Ambani-led company has launched six plans ranging from Rs. 699 to Rs. 8,499 per month, from the lowest to 100Mbps speed, to the highest speed of up to 1Gbps respectively. The company is also providing free TV to its annual subscribers under its Welcome Offer.
Furthermore, the report pointed out that the much-hyped attraction of giving 24-inch TV set for free is also not going to attract users.
In fact, analysts from several firms highlighted that the plans are not lucrative enough to attract users. And there are chances that the company might also face an issue while acquiring TV customers who don't have a broadband connection at home. On the other hand, the report informed that Airtel's newly launched entertainment platform -- Airtel Xstream can easily counter JioFiber services.
Our Take
After disrupting the telecom sector, Reliance Jio has launched its Fiber services in India on September 5, and it is targeting 20 million homes initially. But, people are already using the internet services from other companies. So, it will be interesting to see how many people will opt for the new alternative.
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