Jio again: How Reliance JioFiber impact could result in price cuts across services

With up to 100mbps speeds on offer, Jio GigaFiber is expected to open up video conferencing services, smart home solutions, online gaming and 4K video services like never before.

Written by Nandagopal Rajan | Updated: July 5, 2018 6:36:38 pm
Reliance JioFiber could trigger price cuts across services, make customer king again Reliance’s JioFiber project has been in the works a few years now. In fact, pilot projects are running in many parts of the country.

After the huge impetus it gave to mobile broadband in 2016, Reliance Jio is now preparing to do the same for wired broadband with the launch of JioFiber high-speed broadband services. Reliance Industries chairman Mukesh Ambani on Thursday announced that JioFiber will become available in over 1,100 Indian cities from August 15.

With up to 100mbps speeds on offer, JioFiber is expected to open up video conferencing services, smart home solutions, online gaming and 4K video services like never before. As the democratisation of high-speed broadband happens across the country at the very Reliance Jio prices we have come to expect — the rates have not yet been announced — the impact across sectors will be huge. As services like Netflix, Steam, Amazon Alexa and Google Home are expected to see an uptake along with the sale of internet-based smart televisions, the existing broadband and cable/DTH services will have to up their game to stay in contention. Click here to read this in Malayalam

However, if Reliance Jio’s highly competitive pricing structure so far has taught us something it is how it has pushed the rivals to rise up to the task and bring down prices to stay competitive. In fact, don’t be surprised if the same happens to your broadband and cable/DTH bills in the coming months. The costs of having these services from your existing players might become as cheap as Reliance Jio’s, thus making a switch over not that attractive.

Reliance’s JioFiber project has been in the works a few years now. In fact, pilot projects are running in many parts of the country. However, Reliance’s struggle has been in getting permissions to enter some residential societies and localities in the areas where pilots have been running. This is why it is significant to note Ambani’s statement asking people and their neighbours to sign up. Consolidated demand from localities will be crucial for JioFiber to be able to enter some locations.

Anyway, this is the boost to broadband that has been waiting for all along. In India, broadband is still niche and speeds pedestrian. Just the fact that JioFiber will be available in 1,100 cities make it a game changer. Now to see what the actual impact on the ground will be. Anyway, RelianceJio’s announcement has once again underlined that when it comes to telecom in India, the customer is still the king.

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