Bharti Airtel Chairman Sunil Mittal says Jio entry will result in massive erosion of tariffs

Bharti Airtel Chairman Sunil Mittal has said that impending entry of Reliance Jio will lead to “massive erosion of tariffs” in the Indian telecom industry, expressing concerns over the impending launch of Mukesh Ambani-owned 4G telecom operator. According to media reports, Mittal said that Jio’s entry is going to add to pressure in the market, which would lead to massive erosion of tariffs.

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Earlier, Aditya Birla Group Chairman Kumar Mangalam Birla said in an interaction with the Economic Times had said that Jio will create an upset for all the existing telecom operators. “When you have a new entrant with such deep pockets, then that is bound to happen…The sector will, however, see a lot of changes next year,” he had said.

Reliance Jio is anticipated to unleash disruptive 4G data price plans to poach top-end data customers from incumbent carriers such as Bharti Airtel, Vodafone India and Idea Cellular in urban markets.

Jio, which already serves to over 7 lakh subscribers in the country, may start operations towards the end of this year, but some reports suggest that the launch may take place in September this year following rigorous testing of its network and services. As per media reports, the average data usage per subscriber of Reliance Jio stands at 18.6 GB, which translates into a total usage of 13 million GB.

Mittal also expects that only four private telecom operators will to remain in the next two years, as consolidation pick pace in the Indian market. He said that consolidation would improve the health of the industry.

Currently, RCom is leading the consolidation drive in the market, and has already gotten approvals to merge operations with Sistema’s India unit. In addition, the Anil Ambani-owned company is very close to further merge wireless operations with Aircel.

“Besides BSNL/MTNL, I expect only four operators to remain in 24 months,” Mittal said. He indicated that Airtel, Vodafone India, Idea Cellular and Reliance Jio will be the potential survivors.

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50 Comments on "Bharti Airtel Chairman Sunil Mittal says Jio entry will result in massive erosion of tariffs"

 

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TechGuy
July 7, 2016 9:28 am 9:28 AM
I have been a silent follower of Telecomtalk from last few months ever since i heard about Reliance Jio. Just like most people on this forum, i have been eagerly waiting to get a Jio connection for myself. Yesterday stumbled across a news article about LYf’s phones getting a 25% price cut. decided to buy the Flame2 from Reliance digital today. I’m very happy to learn that Sunil Mittal is concerned about Reliance Jio’s launch and it is about time that Mr. Mittal realizes that he can’t take customer’s got granted anymore . My wife uses a Airtel 4g connection… Read more »
Santanu Sarkar
July 8, 2016 11:32 am 11:32 AM
Well said!!!I reserve the same opinion as yours.how can you expect telecom operators like Airtel to provide 20-25gb of 4G data when they are in no mood to slash the prices from Rs 250 for a gb of data.So, going by simple mathematics,you can get only 4gb in 1k bucks.or better try out airtel’s Rs 5 cyber cafe pack which offers some mind boggling value, unlimited unusable 2g data for one hour (let me know if you can even open Google home page).very economical,isn’t it!!!???be rest assured that it is the maximum value for money that they can provide.just imagine… Read more »
prosamanta
July 3, 2016 7:04 pm 7:04 PM

He and the AVOID group just mean to say 4 words Bamboo in the back

Santanu Sarkar
July 3, 2016 12:16 am 12:16 AM

Sanjit is absolutely correct. Its not about the name of the operator, but the quality of service they are providing or will be providing. No matter how big the brand might be, quality will speak for itself. Big operators have actually become very arrogant because they are making lots money without any resistance. If Jio has proper service mechanism in place, I think no-one can stop it. Blindly supporting a telecom operator is not at all a prudent decision.

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