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Reliance Jio GigaFiber, the much-awaited broadband internet service is expected to disrupt the market with its high-speed and low-cost plans. In addition to the broadband internet service, it will also offer internet-based television programming starting from Rs. 500. Basically, it will disrupt not only the rivals in the broadband sector but also the cable operators by offering similar services at half the pricing.
Reliance Jio announced the JioPhone 2 and Jio GigaFiber at the 41st AGM early in July. While the registrations for both these products will be open from August 15, the commercial rollout of the broadband internet service is expected to happen before Diwali, which falls in early November.
As per a report by The Economic Times citing a person familiar with the plans, the service will be rolled out initially in the metros and nearly 80 top tier 1 and tier 2 markets. The availability of the broadband internet service will be based on the number of consumer registrations, the report adds.
Jio GigaFiber to lower the cost
As of now, every household will spend on home broadband packs and TV services. On an average, the home broadband packs offering 100Mbps speed will cost between Rs. 700 and Rs. 1,000, cites the report. The same will be around Rs. 250 to Rs. 300 for the TV services. With the launch of the Jio GigaFiber bundling both the services together, users will spend as much as 50% lower.
Furthermore, the report adds that the home broadband service from Jio will be priced much lower than its 4G mobile data service. As of now, the 4G mobile data from Jio costs Rs. 2.7 to Rs. 5 per GB. So, the GigaFiber will offer data at a lesser cost.
It is expected that the Jio broadband service will arrive with bundled services to set it apart from its competitors. This way, the company will gain more importance increasing the consumer stickiness and market share. And, it will lead to a situation wherein consumers will use landline, television, internet and mobile services from one service provider.
GigaFiber plans to cost Rs. 500
Furthermore, the report goes on stating that the internet-based TV services by Jio will deploy IP multicasting technology so that the home broadband customers don't end up using their data to watch TV. This technology will let a single stream of TV services to be delivered to a bunch of recipients.
If not for this technology, Jio would end up providing 500GB to 600GB of data per month per household for the TV services alone. Eventually, the IP multicasting technology will bring down the pricing of GigaFiber (broadband and TV services) to as low as Rs. 500 per month.