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Last year, Reliance Jio announced that it will soon step into the broadband market. The company even announced the testing of its JioFiber in Mumbai and Pune but didn't disclose any launch date. Now, the company has hinted that JioFiber services will be launched by the end of the year. So, its safe to say that Reliance Jio is gearing up to disrupt the broadband market as well.
So far, Jio has only covered 10 per cent of the population in the cities where JioFiber services are being tested. In the initial phase, JioFiber services will come to the top cities like Mumbai and Delhi, followed by Tier-1 and Tier-II cities. The users will receive 100GB of monthly data for 90 days at 100Mbps speed as a part of JioFiber preview offer. However, users will have to pay Rs 4,500 one-time security deposit to avail the offer.
According to Indian Express, the rationale behind charging the amount as a security deposit is the cost attached to the router. Each unit cost Rs 8,000 to the company and company is asking to pay Rs 4,500 as a deposit.
According to the reports, Jio will be using router with Optical Network Termination (ONT), that can be used for five things like Internet, Landline, Cable TV, Home automation and Home surveillance. This indicates that Jio is aiming to offer a complete package, which includes multiple services in a single router. The arrival of the JioFiber will affect existing broadband service providers, as well as satellite cable operators like Tata Sky, Dish TV and others.
While looking at the leaked images of the router, we can say that the JioFiber router will come along with the Jio branded remote control. However, we don't know much about the features of the router apart from the one mentioned above.
So far, Jio has changed the entire landscape of telecom sector in India with the launch of its 4G service and affordable featurephone. We are expecting the same aggressive strategy from Reliance Jio with its broadband service. It's been reported that Mukesh Ambani might announce the launch date of the JioFiber service at Reliance Industries' annual meeting on July 5.
There are other broadband providers who have a strong customer base in India. ACT Fibernet is India's 3rd largest Internet Service Provider in the wired broadband category with a customer base of over 1.2 million. On the other hand, Tikona managed to become one of the top three broadband service providers in India with a 2.75 lakh subscriber base in 25 cities spread across the country.