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Reliance Jio, which started its 4G services in India in September 2016 has seen enough success with millions of subscribers. This was possible with the aggressive pricing strategy. It looks like the company is once again going to implement the disruptive pricing technique to create a change the situation in the broadband landscape of India.
We have already come across several reports regarding Jio's broadband services. The latest one suggests that the Mukesh Ambani led telco will launch the wired broadband services by the end of this year at an unbelievable pricing and attractive benefits.
Unlimited calling benefits
A livemint report citing an anonymous source familiar with the development, Reliance Jio is planning to foray into the wired broadband segment by the end of this year. The FTTH (fiber-to-the-home) services will be bundled with unlimited calling via a VoIP phone and JioTV. On May 1, the government approved a proposal to let internet telephone. VoIP lets users make voice calls using a broadband internet connection instead of the conventional public switched telephone network.
Jio broadband plan under Rs. 1,000
The report adds that Reliance Jio will offer internet access, video calls and voice calls at less than Rs. 1,000 per month. It is claimed that the cost of the plan is under discussion but it could be under Rs. 1,000 per month. It cites that the company is yet to revert to the email query sent regarding the tariff. As of now, Reliance Jio is offering free broadband along with unlimited internet with a speed of 100Mbps for a security deposit of Rs. 4,500.
Regarding the same, Amresh Nandan, research vice president at Gartner adds that bundled offerings are popular in some western markets but need a strong content strategy to be successful. Given that Jio already has a content strategy, it can be successful in bundling fixed line, broadband internet, mobile and media for its users.
While Reliance Jio is expanding its services, other telcos such as Airtel that already has a strong foothold in the broadband sector is preparing to face the battle. The operator introduced a 300Mbps plan for the Rs. 2,990 and offers 1200GB of data. The Airtel broadband plan is bundled with free Wynk Music and Airtel TV subscription.
Besides this, Airtel has three broadband plans with Rs. 1,099, Rs. 1,299 and Rs. 2,199 monthly rental. These plans are bundled with Amazon Prime subscription, landline calling and broadband usage.
In our opinion, the Reliance Jio broadband plan offering unlimited VoIP calling and other benefits under Rs. 1,000 a month will definitely bring in a disruption in the market. We can expect to see a fierce competition in the internet segment just like what is happening in the telecom industry right now.