Jio set to step up pressure on rivals again with bundled broadband
just under ₹1,000, you could get to access broadband, watch television and make phone calls, with Reliance Jio Infocomm Ltd set to begin bundled telecom, data and entertainment services by the end of the year.
Jio, which forced down tariffs, squeezed out weak telcos and triggered a consolidation in the telecom sector since its entry in September 2016 is preparing for the next stage of disruption, conducting pilots of its fibre-to-home (FTTH) services.
“Jio plans to enter the wired internet segment by the end of this year...and the fibre-to-thehome will also come with unlimited calling through a VoIP (Voice over Internet Protocol) phone as well as JioTV,” a person aware of the matter said, requesting anonymity.
“Discussions on a bundled tariff are still going on, but current talks suggest it could be under ₹1,000 a month,” the person added.
An email query sent to Reliance Jio was unanswered till press time.
Reliance Jio is currently running wired broadband trials in some locations. It has offered free broadband in some areas in New Delhi and Mumbai, with unlimited internet at 100 mbps against a security deposit of ₹4,500.
“Bundled offerings, though popular in some western countries, have not been successful without a strong content play. Jio has been active with its content strategy and this would become an advantage with a bundled quad play – fixed line, mobile, broadband internet and media. Bundling increases the value proposition and the telco is able to even cross-subsidize one offering using others in the portfolio. In addition, it may increase consumer stickiness,” Amresh Nandan, research vice-president, Gartner, said.
On May 1, the government approved a proposal to permit internet telephony. Voice over Internet Protocol (VoIP) is a technology that allows you to make voice calls using a broadband internet connection instead of a traditional public switched telephone network.
JioTV too has recently stepped up its content offerings. In the past, it has won digital rights for global sporting events such as Winter Olympics 2018, EFL Cup (Carabao Cup Final), and T20 cricket series Nidahas Trophy. Through the JioTV app, a user can access many TV channels and even pause and play a live programme or catch up on shows telecast over the previous seven days.
Ahead of Jio’s FTTH launch, rival Airtel is trying to push its home broadband offerings in new cities and expand its coverage in cities where it is already present. Airtel has also upped its content play by introducing a new home broadband plan with speeds of up to 300 mbps at a monthly rental of ₹2,990, with 1,200GB of data and free subscription to Airtel’s over-the-top apps Wynk Music and Airtel TV.