In the 41 AGM of Reliance industry chairman Mukesh Ambani announced the launch of fiber base home broadband plans in the GigaFiber brand banner.
The plan will be implemented in 1,100 cities across the countries. But he did not announce any deadline or starting date of this plan.
According to the sources, the company is opting for the phase-wise launch of the service starting from November this year. The first phase will cover 15-20 key cities.
This city was selected on the basis of the high demand fiber base home broadband by consumers. Jio will be launching the price plans in the range of 500-700 per month, the offer will include 100 GB data at the speed of 100 Mbps. This exclusive offer will give free internet service, video calling service and much more.
Jio to offer Fiber Base Home Broadband for Free
Jio is even planning to offer this services free of cost for starting 3-6 months. The company will be implementing the same strategy as they did with Jio phone on its launch. This strategy will attract more customers who will then go on to become loyal customers of the service.
Building a physical infra for fiber-based home broadband can be challenging for the company due to its costs and other problems. This includes getting permission from the residents association to roll out the plan.
“Jio will choose the initial cities for launch based on early demand levels for its home broadband services after the registration process kicks off from August 15, especially since there will be costs involved in extending last mile connectivity,” asserts a senior industry executive
Brokerage JP Morgan stated that they expected Jio’s home broadband services “launch pricing to be at a large discount to current broadband and set-top box prices,” in line with its aggressive customer acquisition strategy.
Airtel Might Face Pressure
Bharti Airtel currently gives 50 GB of data a month at 40 Mbps speed in Bengaluru at 799 rs per month, in Delhi Airtel offers 100 GB for Rs 499 per month and at the lower speed of 8 Mbps.
Seeing this offer and the new strategy of Reliance Jio, Rajiv Sharma, telecom analyst at HSBC, asserts that “I expected Bharti Airtel to face near-term earnings pressure if Jio comes up with disruptive home broadband plans offering 100 GBs (of high-speed data) priced below Rs 700 per month”.