Big targets?
Jio will not get more than half a million of broadband subscribers in its first year, says Faisal Kawoosa, head – New Initiatives, CMR.
There is an upfront cost of Jio GigaRouter which CMR expects to be in around Rs 2500-3000 along with the offer. The additional cost for STB will be Rs 2000-2500 for supporting 4K content. “Achieving 50 million by a single operator seems highly unlikely,” Faisal Kawoosa said.
Market reacts
Media
reports suggested that Airtel has started to remove FUP (fair usage policy) on some of its broadband plans in Hyderabad offering unlimited data without any cap on Internet speed. The strategy of Airtel is to retain its broadband customer base.
Jio challenges
Last-mile connectivity to enter the household segment will be challenging due to a large number of approvals required from resident associations and local authorities, permissions required for gaining access to buildings and customer homes to deploy in-house and in-building cables, and resistance from local cable operators, India Ratings said.
High-density broadband markets are likely to witness competition during fiscal 2019-2020, as the ecosystem is already in place for Jio to start providing its offerings. Regional broadband and cable players operating in third- and fourth-tier towns may not be a competition threat, said India Ratings.
Consumers may shift to Jio as its service offerings including content library and video calling would be superior to basic cable services from existing operators. The majority of MSOs are currently incurring large Capex to expand their optical fibre networks.
). Also not many people require connecting to a us/Europe based server (not saying that they shouldn't pay attention to it). Most of the stuff that mass public needs is available locally via peering.
Will give it a try
