Reliance Jio’s 4G LTE launch and data tariffs will compel incumbents in the telecom sector to respond with more aggressive offers, says Bank of America Merill Lynch (BofA-ML). According to a CNBC-TV 18 report, BofA-ML sees Reliance Jio’s three data price points of Rs 149, Rs 299 and Rs 499 as most disruptive. “We see some near-term impact on Bharti Airtel and Idea Cellular’s financials,” said BofA-ML. “We also expect consensus downgrades on the back of Reliance Jio,” the bank added. However, BofA-ML is of the view that the impact on the higher tier segment will be muted.
Mukesh Ambani, at the 42nd AGM of Reliance Industries, highlighted the roadmap for Reliance Jio. Dedicating Reliance Jio’s launch to Prime Minister Narendra Modi’s Digital India vision, Mukesh Ambani said, “Our Prime Minister Narendra Modi’s vision for Digital India is a life changing moment. Jio is a dedication to that Digital India dream of the Prime Minister, his vision for the 1.2 billion people of India.”
“The Jio ecosystem stands tall on 5 fundamental pillars. 1) The best quality broadband network with highest capacity; 2) A world of affordable, 4G smartphones and wireless IP devices; 3) Compelling applications and content; 4) Superior digital service experiences; and 5) Affordable and simple tariffs,” Ambani elaborated. “I have great pleasure in announcing that all voice calls for Jio customers will be absolutely free. Jio will put an end to voice call charges in India. No Jio customer will ever have to pay for voice calls again…Data packs in the market have an effective rate of about Rs 250/ GB. With Jio, you pay 5 to 10 times lower – Rs 25-50/ GB,” he said.