Jio ups the ante with its competitive broadband offering
Reliance Jio Infocomm Ltd will now offer internet access, videos and voice call for less than Rs1,000 a month with its wired broadband services later this year. Fibre-to-the-home (services) will also be present with unlimited calling through a VoIP (Voice over Internet Protocol) phone as well as JioTV. Under its wired broadband trials, Jio is currently offering free broadband with unlimited internet at 100 Mbps against a security deposit of Rs 4,500.
Why is this important
In India, bundled offerings haven’t picked up steam due to poor content availability and Reliance Jio will be addressing this issue with JioTV, a television app, where users can access multiple TV channels, play, pause and record live programmes.
To further strengthen its presence, Reliance Industries has recently announced an integration with music app Saavn for its digital music service JioMusic and bought a 5% stake in Eros International Plc.
Currently, Airtel currently has three plans with monthly rentals of Rs. 1,099, Rs. 1299 and Rs. 2,199, where it has bundled Amazon Prime subscription with landline calling and broadband.
Stocks to be impacted
In recent times, the ability of telcos to monetize their infrastructure has fallen considerably as the stiff competition has led to a price war and taken the tariffs down. The player who offers better additional services like DTH TV will have better pricing flexibility and a stickier consumer base.
Bharti Airtel Ltd.(CMP: Rs. 375, Market Capitalisation: Rs. 1,50,202 Crores , EV/EBITDA FY2020E: 6.94)
Idea Cellular Ltd.(CMP: Rs. 61.5, Market Capitalisation: Rs. 26,788 Crores, EV/EBITDA FY2020E: 11.60 )