Reliance Jio is soon going to launch fixed-line broadband, cable, and satellite (C&S) ecosystem with jioGigaFiber.
Reliance Jio has already made it big with its 4G and other cellular services. Now the JioGifaFiber will target household, merchants and small businesses.
Reliance is conducting beta trials of JioGigaFiber in thousands of household, and from August 15, 2018 user will be able to register for the jioGigaFiber using the Jio app and website.
Reliance Jio’s broadband
“We will prioritize our JioGigaFiber rollout to those localities from where we receive the highest number of registrations,” chairman Mukesh Ambani stated at the recent Reliance AGM.
The fiber-to-home business in India is not that transparent. For implementing JioGigaFiber Reliance will have to go through the procedure of certain approvals in order to get the clearance for everything. The company has invested `2, 50,000 crores in terms of capital to get the fibre-to-home business infrastructure ready to roll out.
Currently, the Country has the subscriber base of 18 million for fixed broadband, according to the Indian ratings. The number indicates about 7% of the total household base which is nearly 290 million and 10% of the TV household infiltration.
The infiltration level is not that high if compared to the global average. Rjio will be targeting 50 million households, signifying 18% of the total household.
“We estimate that at the current monthly broadband tariff of `500-600 per household, the potential market size for 50 million households could be `30,000-36,000 crore — a significant portion of which could be tapped by RJio,” says Prashant Tarwadi, director — corporate and GIG, India Ratings.
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The Cable will be providing high-speed Internet to turn the homes into smart homes. High-speed data will open new ventures for smart devices and home security, this service can also change the viewing patterns for television.
Jio TV has collaborated with several top broadcasters to provide sufficient content to its customers. “Speed is not what makes Reliance superior; the service and the content does. Every major player invests around `200-250 crore every year to widen its reach by laying fiber. It is the same fiber that Reliance is using, so the speed will be the same,” added Tarwadi.
Jio TV- Content offered
JioTV, beside the live TV it also offers the bouquet of movies and serials series. The content provided is produced by OTT platform and other means. The telco has also collaborated in Ekta Kapoor’s owned Balaji Telefilms and is also get the content from Viacom and its OTT platform VOOT.
Jio has also appointed in the former executive director of Eros International. Jyoti Deshpande and has collaborated with Roy Kapur Films (RKF)-a venture ownded by Siddharth Roy Kapur.
“Unlike telecom, where players like Airtel with strong balance sheets were able to withstand the disruption, the C&S universe will face potentially an existential challenge with JioGigaFiber, with the exception of a few well-run operations,” says RC Venkateish, media veteran and former CEO of Dish TV.
Tarwadi agrees that existing players will get impacted. “During FY19-20, high density markets are likely to witness stiff competition as the overall ecosystem is already in place for RJio to start providing its offerings. Regional players operating in tier III and IV towns may not be a direct threat, albeit the long term risk beyond FY20 remains,” he stated.