- Airtel Digital TV is already looking for a stake to buy in Dish TV
- Tata Sky is on the lookout for investors after Temasek and Tata Opportunities Fund eye an exit
When Reliance Jio came to the Indian telecom industry for the first time back in 2016, it shook the Indian telecom sector with its introduction of the cheap tariff rates, free and combined offerings. However, now the Mukesh Ambani led company is ready to commercially launch its next big thing in India – Reliance Jio GigaFiber. Now, even before the company has done a nationwide rollout of the service, we can see some stirs as the rivals are busy preparing their defence towards Reliance Jio. There is also the obvious question that when Reliance Jio attacks the DTH and broadband industry this time, will it take over the industry the same way it did for mobile telephony.
The beginning of Consolidation in the DTH Industry
There are no two thoughts about the fact that the broadband industry is already preparing for the coming of Reliance Jio FTTH service. BSNL and Airtel have already debuted their revised plans which offer more to the users. The government led telecom operator has also removed FUP limit on many of its plans which means that it is trying to attract more and more consumers to stick. Similar is the case for many other providers in the industry.
As per the consumers and experts noting the industry trends, there is a chance that the DTH industry might suffer a similar fate in the hands of Reliance Jio GigaFiber. There is already a very nascent wave of consolidation ongoing in the DTH industry with Airtel Digital TV, the DTH wing of Bharti Airtel looking to acquire Dish TV, a significant DTH player along with Singtel. The Singapore based telecom giant will buy a 60% stake in Dish TV along with Airtel. Tata Sky is also on the lookout of investors lately as Temasek and Tata Opportunities Fund which together own 19% stake in the company are also looking for a way out. For Airtel Digital TV, having a consolidated large market share when the GigaFiber arrives will be an upper hand, while for Tata Sky the investment would mean more capex opportunities. Right now, it’s said that Jio’s TV service will be called as Jio HomeTV and the telco will bundle broadband, TV and home security billing into a single one.
GigaFiber Already Rolled Out in Select Cities
It is worth noting that currently, Reliance Jio GigaFiber is live on a preview basis in cities like Delhi NCR, Mumbai and Ahmedabad and Surat. The consumers will have to deposit Rs 4,500 as security amount after which they will be able to avail the Reliance Jio GigaFiber router and data along with its other services. The telco is currently providing high-speed fibre internet with 100 Mbps speed in these regions with the data limit set at 100GB.
It will be interesting to see, how the arrival of Reliance Jio GigaFiber affects the DTH industry. Causing a wave in the wired broadband segment is sure. However, how long this wave lasts and whether it will replicate the intensity of the revolution in mobile telephony is yet a looming question.
Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.