The Indian Wire » Telecom » Reliance JioFiber’ unlikely to cause major disruption in broadband pricing : CRISIL Research

Reliance JioFiber’ unlikely to cause major disruption in broadband pricing : CRISIL Research

Reliance Jio has debut in wired telecom with its JioFiber. However, it fails to impress the customers as it did in wireless and might not disrupt the fiber-based broadband services. CRISIL Research says that plans and tariff of Reliance JioFiber are non-disruptive.

Reliance on 5th September unveiled the JioFiber services which are:

  • Bronze pack : 100GB monthly data at 100Mbps speed for Rs 699 per month
  • Titanium pack: 5000GB monthly data at 1Gbps speed for Rs 8,499 per month.

BSNL’s Bharat Fiber base packs are:

  • It offers 500GB data with 50Mbps speed for Rs 777.

Airtel’s V-Fiber broadband plans: 

  • It starts at 100GB data at 40Mbps for Rs 799.

ACT Fibernet’s plan:

  • The base pack offers 500GB data at 100Mbps for Rs 749.

CRISIL Research said that the plans are unlikely to lead to a significant churn in the market because the Jio’s pricing per GB is approximately Rs 4 for the base plan, rivals are also in a similar range. “Government-owned BSNL’s is much lower at Rs 2. Among premium plans, JioFiber’s price per GB is approximately Rs 1.2-1.6, again in line with competitors,” it says.

It further adds that the pricing for mid-size packs continues to remain higher than current wireless pricing on a per GB basis. JioFiber’s base plan starts at 100 Mbps for 100 GB data limit (+50 GB extra for six months) and the base plan of most other wired broadband providers starts at 50 Mbps for almost the same amount of data.

Other offers by JioFiber:

  • The JioFiber offers free voice calling anywhere in the country, unlimited data, and video conferencing.
  • It is also offering free 4K set-top-box for streaming TV channels as well as free 4K TV for annual Gold (and above) pack subscribers.

CRISIL said that , The lack of pricing aggression and non-attractive bundled pricing would result in limited disruption in the underpenetrated wired broadband market and higher non-refundable deposit fee of Rs 2,500 with additional cost for premium content would also dampen prospects.

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