Jio becomes fifth largest wired broadband player with 0.79 mn subs in Oct
MUMBAI: Reliance Jio Infocomm’s JioFiber has amassed 0.79 million wired broadband subscribers to enter the top 5 list of broadband players in India. The telecom operator had launched its wired broadband service Jio Fiber on 5th September 2019.
According to Telecom Regulatory Authority of India‘s (TRAI) monthly subscription report October, Reliance Jio Infocomm was at number 5 with 0.79 million subscribers.
It has replaced Vodafone Idea-owned You Broadband (0.75 million), which was at the fifth position, as per the TRAI report for September 2019.
As of 31st October, the top five wired broadband service providers were BSNL (8.62 million), Bharti Airtel (2.40 million), Atria Convergence Technologies (1.49 million), Hathway Cable & Datacom (0.87 million) and Reliance Jio Infocomm Ltd (0.79 million).
It is pertinent to note that Reliance Jio Infocomm’s parent company Reliance Industries owns a majority stake in Hathway Cable and Datacom besides DEN Networks.
The total wired broadband subscribers have increased by 0.37% in October to touch 19.08 million from 19.01 million in September.
In October, Reliance Industries had stated that Reliance Jio Infocomm is in the process of converting >0.5 million existing trial users of JioGigaFiber to paid bundled plans.
The conglomerate had also stated that beta trials of JioGigaFiber services across more than 0.5 million homes were very successful with monthly data usage in excess of 100 GBs.
The company had said that it will be ramping up its sales engine to connect 20 million homes and 15 million enterprises for the FTTH service.
Reliance had stated that it has received strong interest across the 1,600+ cities where the FTTH services would be launched initially. It also expects FTTH and enterprise services to be key growth and margin tailwind over the medium term.
Following the commercial roll-out of JioFiber, credit rating agency Crisil had come out with a research report stating that Reliance Jio’s tariff plans for its fiber-to-the-home (FTTH) service JioFiber will not be able to disrupt the market.
It went on to state that the lack of pricing aggression and non-attractive bundled pricing would result in a limited disruption in the underpenetrated wired broadband market. Further, a higher non-refundable deposit fee of Rs 2,500 and additional cost for premium content would also dampen prospects.
It also noted that pricing for mid-size packs continues to remain higher than current wireless pricing on a per GB basis, thereby giving comfort that pricing in the wireless market would stabilise.
JioFiber launched its service offerings starting at Rs 699 for 100 Mbps, or the Bronze pack, going up to Rs 8,499 for 1 Gbps, or the Titanium pack. Crisil Research believes the plans are unlikely to drive a significant churn in the market.
JioFiber’s base plan starts at 100 Mbps for a 100 GB data limit (+50 GB extra for six months). The base plan of most other wired broadband providers starts at 50 Mbps for almost the same amount of data, if not more.
Meanwhile, the TRAI’s telecom subscription data report stated that the number of broadband subscribers increased from 625.42 million at the end of September 2019 to 644.08 million at the end of October 2019 with a monthly growth rate of 2.98%, as per the reports received from 336 operators in the month of October 2019.
Top five service providers constituted 98.98% market share of the total broadband subscribers at the end of Oct-19. These service providers were Reliance Jio Infocomm Ltd (365.12 million), Bharti Airtel (132.86 million), Vodafone Idea (115.80 million), BSNL (22.27 million) and Atria Convergence (1.49 million).
The top five Wireless Broadband Service providers were Reliance Jio Infocomm Ltd (364.33 million), Bharti Airtel (130.45 million), Vodafone Idea (115.78 million), BSNL (13.64 million) and MTNL (0.20 million).