Indian
Telecom sector is undergoing turbulent time post Reliance Jio 4G service
launch. The tariff plan announced by Reliance Jio is intentional to grab market
share in terms of user whereas they don't care of revenue. Even rating agency
Fitch in its assessment mentioned that Reliance Jio will barely gain 2% of
Telecom revenue which is very bad news for Reliance Jio.
Both
Reliance Jio and Airtel is having pan India license as well as network. Both
Reliance Jio and Airtel invested heavily in infrastructure whereas vodafone and
Idea cellular is also present in certain license zone. When it comes Reliance
Communications and Aircel; both the merger by mid of 2017 provided green signal
from CCÌ & other regulatory body will be another competitor.
4G
network is all IPO network and works on Smartphone which limits the total
addressable market size to 550 million as compared to total wireless userbase
of more than 1 Bn.
Reliance
Jio is currently facing call termination issue due to lack of point of
interconnect and it's calling platform quality will be evaluated only and only
if it's call drop goes lower than 1% whereas Airtel is not facing any issue
related to that.
Even
TRAI also confirmed in its report that Airtel 4G network is the best and
beating Reliance Jio on most of the KPIS.
When
it comes to number of subscribers, I do not agree with Reliance jio claim of 16
million during 1st month as we don't
know the calculation methodology which I mentioned in my previous article.
Reliance jio is offering 9 SIM against one Aadhar card and will see very high
churn rate post they implement commercial aspect with their service offering.
At
the same time, the biggest loser of user will be Reliance communications and
Aircel as there will be disruption in service quality of service during the
network integration and optimization. We also know that Reliance communications
customer service is bad and it opens the opportunity for companies like Airtel
and vodafone.
It
is known fact that Airtel knows how to handle competitor and they demonstrated
it by reducing their data plan. Now one can get 10 GB for around 250 INR and in
turn challenged Reliance Jio to compete.
In
my point of view by the start 2nd half of FY 18, Airtel will be dominating 4G
player in India.
Related Articles:
- What is the User Acquisition Calculation Methodology Adopted by Reliance Jio ?
- Why Reliance Jio Lagged in TRAI Data Network Performance Report?
- Why Indian Wireless Subscriber Numbers From Sept 2016 Is Irrelevant?
- Reliance Jio Data Users Consuming 120 GB Data Per month - Isn't It Global Record ?
- What is Mr. Mukesh Ambani Alternative Plan for Reliance Jio?
- Airtel, Vodafone, Idea Cellular, RCOM, Reliance Jio May Experience More Than Expected Wireless Churn Rate - Here is Why?
- Reliance Jio May Extend Free Service Post 31st Dec 2016
- Mukesh Ambani Indirect Warning To Incumbent Indian Mobile Operator's - Sign Of Frustration Or Tactical Pressure Game
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