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Reliance Jio in fray to give a tough price war in Indian Telecom Sector

Reliance Jio to begin price war with major telecoms Idea, Vodafone and Bharti Airtel   

India: Reliance Jio has introduced the tariff plans for its offering, giving a clear cut signal for price war in the telecom industry. Idea, Vodafone and Bharti Airtel are planning to slash away the prices of data services to compete with Jio’s tariffs which appears to be the cheapest in the world and might attract at best, extremely price-sensitive customer.

Major telecoms are of the view that the impact would depend on Jio’s ability to sustain low tariffs and service quality. The response would depend on the kind of uptake Jio will have in terms of gaining subscriber as the group has set a target of signing up 100 million subscribers in the shortest possible time 

Jio’s 4G network will cover 18,000 cities, towns and over 2 lakh villages, by march 2017 Reliance Jio plans to cover 90% of the population. Jio has not revealed all its card yet and it could launch new set of tariffs around January possibly.    

TechSci Research depicts that the introduction of Reliance Jio’s offering in Indian market with cheap price offerings would give rapid growth to Long term evolution(LTE) devices. With many other telecoms giant(Aircel,MTS) in fray to provide 4G and above services at throwaway prices, the market for LTE devices is expected to grow at a higher rate.

According to “Global LTE Consumer Devices Market Forecast and Opportunities, 2020”, global market for LTE consumer devices projected to grow at a CAGR of more than 26% during 2015 - 2020. Rising adoption of LTE technology in emerging economies, increasing number of new LTE enabled registered devices, such as cameras and other wearable devices, mounting Machine-to-Machine connections, Internet of Things (IoT) and declining global average selling prices of LTE devices is projected to propel growth in global LTE consumer devices market through 2020. Samsung and Apple are expected to continue their market domination; however, their respective market shares are expected to decline over the course of next five years.

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