The Mukesh Ambani-led oil to telecom company's broadband service comes at a tenth of global rates, with plans ranging from Rs699 to Rs8,499 a month with speeds from upto 100 Mbps to 1 Gbps, and bundles in services such as gaming, home network sharing, device security, TV<\/a> video calling and conferencing, besides access to a content platform, among others.
Initially, under a ‘Welcome Offer’ to be offered to the 5 lakh trial subscribers and new ones, Jio will offer a router and a 4K set top box with pre-loaded content for an upfront payment of Rs2,500. The operator is also throwing in TV sets to those who take the two-year plan of Rs 31,176 or the annual plans of Rs 29,988, Rs 47,988 and Rs 101,988.
\"The launch of JioFiber, with its revolutionary services is just the beginning of a new and exciting journey,” said Akash Ambani, director, Reliance Jio Infocomm, in a statement Thursday.
The fixed line home broadband launch comes three years after Jio launched mobile phone services with free voice for life and initially even free – now dirt cheap – data, which disrupted the market, leading to rapid consolidation, leaving Airtel, Vodafone India and Idea Cellular – now merged into Vodafone Idea – and Jio as the only private telcos. Jio though is the only profitable mobile phone company in India.
But analysts say Jio’s prices for the wired home broadband plans are largely comparable with Bharti Airtel, but the new entrant is offering higher speeds on starting plans and more services.
\"Jio is clearly offering more choice to the consumer, given the diversity of value-added services, but the focus of its home broadband pricing -- unlike its mobility business -- appears to be driving ARPU via customer market segmentation, and also boosting customer stickiness by inducing JioFiber users to opt for longer-term plans, where bulk of the goodies have been strategically loaded\", said Rajiv Sharma, co-head of research at SBICap Securities.
At June end, India had only 18.42 million wired broadband users compared with over 576 million wireless broadband users, indicating the scope for growth in the segment, say analysts. Currently, BSNL has some 9.05 million wired broadband users, followed by Bharti Airtel with 2.40 million subscribers, with Atria Convergence Technologies, Hathway Cable & Datacom and MTNL following with 1.45 million, 0.84 million and 0.74 million users, respectively.
ENDS.
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