Airtel better prepared to compete with Mukesh Ambani’s Reliance Jio: Report

Bharti Airtel is better prepared with its 4G plans to compete with Mukesh Ambani-owned Reliance Jio, according to a report by Deutsche Bank Markets Research. The research report said that it does not anticipate any impact on Airtel’s revenue share or margins from the Jio launch.

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Reliance Jio’s full commercial launch is expected by December this year. However, media reports suggest that the telco will soon soft launch its services in select cities in the country.

The report said that there are parallels between Jio’s current playbook and Reliance Communications’ launch in 2003.

“The executive management is the same in both instances. Reliance Communications’ pan-India launch was on a scale comparable to that of the incumbents and it surpassed Bharti’s voice throughout within three years. However, Bharti’s revenue share and margins were not affected by its entry. Bharti appears better prepared this time and, contrary to investor expectations,” the report said.

Deutsche Bank Markets Research, in a note, said that it doesn’t anticipate any impact on Bharti’s revenue share or margins from Jio’s launch.

“We believe Bharti’s business performance is poised for multi-year improvement,” it added.

Bharti Airtel has been strategic in acquiring the largest amount of incremental spectrum since 2014, which has helped it to pre-empt Jio by launching 4G on a pan-India basis and increase the competitive gap with incumbent peers, which remain spectrum constrained in their key markets, Deutsche Bank Market Research stated.

The report said that Jio will impact data yields but not the revenue table of the sector.

“We expect data yield to fall 20% per annum for next three years to reach Rs.0.12 per MB compared to the current level of Rs 0.24 per MB. However, we believe Jio will not affect package pricing — it is likely to offer more data at existing price points.”

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19 Comments on "Airtel better prepared to compete with Mukesh Ambani’s Reliance Jio: Report"

 

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Bhavin
April 21, 2016 10:21 am 10:21 AM

Jio is just in talks. they don’t have official website launch. only selling phone and no details of plans. their failure to launch in beginning of 2nd quarter of the year has failed. this leaves a bad name for them.

the company should have an official spokes person for the announcements. in terms of speed and data packs, only time will tell. there is always a tradeoff with reliance. if they give better data packs then there would be issue with call network quality or customer care or some other.

Mahesh
April 21, 2016 7:45 am 7:45 AM

I am working in a very remote area named aloor where its difficult to get 2g network……but there is jios 4g netwrk…….

Atheist
April 22, 2016 9:12 pm 9:12 PM

Yes jio coverage is awesome no doubts about that.. I always see jio in network search in every damn place even remote ones and indoors

Sudhakar
April 20, 2016 7:58 pm 7:58 PM

Jio is a imaginary network. How can fraudtel compete with Rs.298 for 1 GB data for 28 days?

Md. Asif
April 20, 2016 9:24 pm 9:24 PM

Which is your favorite operator?

Atheist
April 20, 2016 9:57 pm 9:57 PM

He likes telenor

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