Reliance Jio 4G could pose biggest threat to Airtel, Vodafone’s market shares: Report

The premium user base of incumbent telcos–Bharti Airtel and Vodafone India—could be early adopters of the high-speed broadband services by Reliance Jio Infocomm, according to brokerage firm CLSA. The brokerage firm said that the launch of Reliance Jio’s 4G services could pose the biggest threat to the market shares of these telcos.

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“As high-ARPU subscribers are likely to be early adopters of 4G, the two highest-ARPU operators are at a higher market share risk with new entrant Reliance Jio’s launch of 4G services,” CLSA said in a note.

Bharti Airtel not only has comparable spectrum to Reliance Jio to defend its turf, but also has launched its own 4G services, the firm said, adding Vodafone is more vulnerable to lose market share due to Jio launch, given it possesses limited 4G spectrum.

Airtel has already launched 4G services in over 300 towns, while Vodafone launched in Kochi, Kerala, recently, and plans to expand to the metros by the end of the year. Reliance Industries Limited will officially launch its telecom venture, Jio, on December 27. The launch however initially will be restricted to its employees, and their families. The brokerage said that only 93 million mobile users, or 9% of subscribers in India, have 3G connections.

Also read: Reliance Jio 4G service nearing launch

The top-five markets-Mumbai, Delhi, Kerala, Karnataka and Tamil Nadu-have twice as much 3G penetration than the remaining 17 markets, and also 40% higher ARPU versus the industry average, CLSA said.

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tej Singh ChouhanEsmailADBSumantMahmood Junaid Recent comment authors
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tej Singh Chouhan
tej Singh Chouhan

Yes

Sumant
Sumant

Stop these nonsense articles about JIO. How many people going to use 4G? They are already too late to release. Only cheaper plan is not solution to build the market. QoS is also an important factor. You know the conditions of RCom. Instead of having huze infrastructure, govt support, immense capital, what is their current situation?? How many people will going to use vo-lte or vo-wifi? It’s not all about data, cheap RCom network will be used for voice fallback. 4G players are already in the market, so it would not be an easy journey at all. Initially they will… Read more »

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