5 reasons why RJio fear looms large over incumbents

Remember the Reliance group’s ‘Monsoon Hungama’ of 2003, when the new offering took the telecom industry by storm as it offered multimedia mobile phones for a down payment of Rs 500, with three monthly plan options— Budget 149, Budget 249 and Dhirubhai Ambani Pioneer Offer.

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The offering led to a revolution in the telecom sector and as a result, millions were added to the country’s subscriber base. Now, once again it’s the Reliance Industries telecom arm Reliance Jio, which is hogging the limelight with its plans to launch 4G services in the country by next year, and the market is eager to see that whether it would able to create the same frenzy of ‘Monsoon Hungama’ this time too. Well, only time will tell that!

Meanwhile, the incumbents such as Bharti Airtel, Vodafone are putting on a brave face as they invest heavily to upgrade their networks, launch 4G services aggressively and say that they are prepared to compete with their formidable rival. But certain facts could not be ignored which help Reliance Jio to get an upper hand over the incumbent players.

Here take a look.

1. Reliance Jio is most likely to lure the heavy data users of Bharti Airtel, Vodafone through high speeds and high cap on data downloads. Analysts believe that RJio has credible options to build the LTE ecosystem in India and coverage quality and voice services concerns could be addressed by carrier aggregation and VoLTE. Reliance Jio can support five times more data from its 4G site compared to a 3G site of Bharti or Idea. However, the incumbents seem less prepared with their poor LTE ecosystem, an Edelweiss report says.