Will Jio bring a revolution?


Given its track record, the company is expected to shake up the wireless market with its disruptive pricing. It is expected that the company will offer 10 GB of data for around Rs 500, and its 1 GB pack will be priced around Rs 80. Rating agency India Ratings expects, “the launch of Reliance Jio Infocomm Limited (RJio) to intensify competition which will squeeze the market share, EBITDA margins and credit metrics of incumbents.” The agency further said the launch of RJio will lead to data revenues remaining stagnant for the existing players. It added that data realisations for a megabyte are likely to correct by 30-40 per cent. Apart from this, the need to keep the network in good shape to compete against RJio will lead to higher investments on spectrum by existing operators.

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