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The entry of Reliance Jio in the wired telecom segment with JioFiber garnered much attention. However, it might not disrupt the fiber-based broadband services. CRISIL Research says that plans and tariff of Reliance JioFiber are non-disruptive and unlikely to shake things up the way they did in wireless
On September 5, JioFiber unveiled its service offerings starting at 100GB monthly data at 100Mbps speed for Rs 699 per month (Bronze pack) and going up to 5000GB monthly data at 1Gbps speed for Rs 8,499 per month (Titanium pack).
In comparison BSNL’s Bharat Fiber base pack offers 500GB data with 50Mbps speed for Rs 777, Airtel’s V-Fiber broadband plan starts at 100GB data at 40Mbps for Rs 799, and ACT Fibernet’s base pack offers 500GB data at 100Mbps for Rs 749.
CRISIL Research believes the plans are unlikely to lead to a significant churn in the market. It notes that while 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, if not more,” CRISIL Research notes.
Also read | Reliance JioFiber plans unveil on Sept 5: What ACT, Airtel Fiber, BSNL broadband plans offer
The JioFiber offers free voice calling anywhere in the country, unlimited data, and video conferencing as part of bundled offers. 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.
“The lack of pricing aggression and non-attractive bundled pricing would result in limited disruption in the underpenetrated wired broadband market. Further, higher non-refundable deposit fee of Rs 2,500 and additional cost for premium content would also dampen prospects,” CRISIL notes.
