India's Reliance announces launch of 4G cellular services
Сен 10 2016 by Francis Osborne
"In our view, incumbent telecom companies would not aggressively match Jio's offering, but try to be at a mild premium to Jio, thereby providing some space for Jio to gain market share".
The news sent the share prices of Indian operators tumbling, according to various local news outlets. "The more one uses data, the cheaper it will be", added Ambani.
The data plans of Mukesh Ambani's highly ambitious venture-Reliance Jio-is already sending jitters in the highly competitive telecom market.
Mr. Ambani also added, "the 4G network of Reliance Jio would cover 90 percent of India's 1.25 billion population by March 2017 and would eventually cover 18,000 cities and 200,000 villages".
Mukesh Ambani, chairman of Reliance Industries, told shareholders that what he called a "welcome offer" would last until the end of the year. Reliance Jio will be launched commercially on December 31.
Apart from telecom services, the company also announced the launch of apps for movies, music and television, among others. Elaborating the principles, Mr Ambani said: "Customers should pay for only one service, either voice or data".
Reliance Jio 4G Tarrif Plan:Reliance Jio 4G Services are announced in india. Given RJio's aggressive pricing structure, its strategy is to drive up its ARPU through higher data usage. The era of paying for voice calls is ending.
"This announcement will unleash a price war among telcos, and users can expect cost of data (not voice) going down in the range of 25 35 per cent", Greyhound Research Chief Analyst and CEO, Sanchit Gogia pointed out.
The 149 plan, available for both prepaid and postpaid users, will offer 300MB data and 100 SMSes with a validity of about a month.
The Times of Indiareported that users don't seem to mind shelling out an amount of Rs 500 or above, considering the fact that they can avail the free services for a few months.
"Our expectation is that the data explosion is just beginning and 300 MB will be far too low for any real 4G users".
CMR also expected Jio to play a critical role in bridging the digital divide prevalent in the country.
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