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Airtel may not lose high-end enterprise customers due to Jio entry says BoAML

September 02, 2019
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As per a report by Bank of America Merril Lynch (BoAML), Bharti Airtel may retain its high-end subscriber base in the enterprise market segment for the initial years as Reliance Jio is planning to enter the market by partnering with Microsoft’s Azure.

The brokerage firm sees less risk of high-end consumers moving away because enterprise is currently not a price-sensitive market. Instead value, reliability and experience play a pivotal role in the market, the firm said.

Reliance Industries had recently announced plans for offering Microsoft cloud solutions to small and medium enterprises (SMEs) at Rs 1,500 a month.

As per BoAML, Reliance Jio’s entry in the enterprise market could distort the pricing structure thereby increasing affordability. Further, the market may witness substantial adoption of data growth with (SMEs) starting to use enterprise services which would expand the market and benefit all companies.

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