New Delhi: The recently launched Reliance ‘Jio Fibre’ broadband service faced flak from CRISIL Research for being ‘non-disruptive’ and unlikely to churn significant subscribers, stated a report.
“CRISIL Research believes the plans are unlikely to lead to a significant churn in the market,” stated the report.
According to this new broadband service, Reliance Jio subscribers can access the internet at a minimum speed of 100 Mbps for Rs 699 a month. Besides, JioFiber will offer free voice calling anywhere in the country, unlimited data and video conferencing.
Annual subscribers will get 4K set-top box, for streaming TV channels, free while a 4K television set would be complimentary with plans with higher payouts such as ‘Gold’ and above.
“The lack of pricing aggression and non-attractive bundled pricing would result in a limited disruption in the under-penetrated wired broadband market. Further, a higher non-refundable deposit fee of Rs 2,500 and additional cost for premium content would also dampen prospects,” the report said.
It noted that consolidation in the sector is some time away.
“Further, emerging developments in terms of pricing in the television distribution space will remain monitorable. So intense attrition is unlikely in the road ahead,” it added.
On August 12, while addressing the company’s 42nd Annual general meeting, Reliance Industries Chairman and Managing Director Mukesh Ambani had announced that the new Reliance Jio’s fiber-based broadband service would be launched on September 5.
(With agency inputs)