After disrupting the telecom market in India, Jio is looking to enter other industries as it has already revealed its plans to enter the broadband internet industry with Jio GigaFiber.
Sonn after its announcement, existing brands started to feel the heat of Jio as Ambani is offering better services at lower prices. The next day after JioGigaFiber was announced, Hathway’s stock price fell 25%, and DEN Networks fell 20%. Even now, DEN Networks trades at 20% low price. These stocks are expected to fall further due to pressure from Reliance.
Also Read: Cable TV Brands Are Feeling The Heat After Jio GigaFiber Announcement
Now, the recent reports from ET have revealed that JioGigaFiber could be priced at 50% lower than competitors. the launch is expected to provide high-speed internet in over 1100 cities across the country using fiber broadband technology. Reliance will also provide TV services, along with a collection of smart-home products which would connect to it, including security systems and video calling tools.
Experts believe that Reliance can opt for similar tactics like that for Jio, when the company had given away free data for initial months and then priced itself lower prices as compared to competitors.
JioGigaFiber plans will cost around only Rs. 500 a month including a Gbps internet connection, and bundled TV services. Currently, cable operators charge between Rs. 600-800 for a 100 Mbps connection with an additional charge of Rs. 250-300 for TV. Thus, Jio’s combination of internet and TV packs could be half the price of the existing players.
Also Read: Mukesh Ambani Launches JioGigafiber, JioPhone 2. Here’s Everything You Need To Know
The registration of GigaFiber will proceed from 15th August on Jio’s site, and priority will be given to connections in areas where there is the most demand. Jio is also planning something special for this Diwali with JioFiber.
This will impact OTT players as well because the consumption of internet will increase. Brands like Netflix and Amazon Prime will likely become even more affordable. Connected homes will create a whole new market for smart home products such as smart lighting devices, security systems which are not so popular in India currently.
Even Reliance has launched a production house which and has announced that it will be launching its own smart home devices. It will be interesting to see if Reliance can repeat the success of Jio as this will open up many opportunities for new innovative startups in India.
