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Jio’s home broadband offerings not disruptive says CRISIL

Viewpoint , September 11, 2019

As per CRISIL, Reliance Jio’s recently launched home broadband plans are not disruptive and may not attract customers as expected. CRISIL has based its evaluation on factors such as higher Rs 2,500 non-refundable deposit fee levied by the telco and additional costs for premium content. The move may not drive churn in an under-penetrated market, the ratings agency said.

Further it added that the pricing of Jio’s mid-size home broadband packs is higher than current wireless pricing on a per GB basis. Jio’s home broadband pricing per GB is around Rs 4 for the base plan which is quite similar to the other rivals. However, it is much higher than state-run Bharat Sanchar Nigam Limited’s (BSNL) pricing of Rs 2 per GB, CRISIL said.

The value-added services such as virtual reality sets, home security, content sharing and device security offered by the telco are niche services and not the primary hook for customers now, as per CRISIL.

 
 

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