We have been hearing about Reliance Jio launching its 4G services since a some time now. And till some time back, the rumors were that Reliance will be launching its full fledged services in December. But, that did not happen.
But what has happened is that Reliance Jio has already launched 4G services for its employees. Which, they are calling it as a beta test phase. The employees of Reliance Jio are given 4G SIMs free of cost, loaded with 4G data. They are also allowed to buy the Volte handsets, which are being white-branded as Lyf, at a great discount.
As of now, only Airtel and Vodafone have launched their 4G services in India. With Vodafone joining the party just a few days back. Till now, only Airtel has launched services fully and they are aggressively marketing their 4G services. Vodafone has launched its 4G services only in Kerala and Kochi.
Other operators planning 4G services
Other operators who are getting ready to launch their 4G services are Idea and BSNL. Idea had purchased Videocon’s license for more than Rs. 3,000 crores for 2 circles. Idea is planning for launching their services in first half of 2016. BSNL, the other operator is almost ready and is planning to launch the services by march 2016.
ReliancReliance Jio’s impact on competition and telecom sector
With this launch, there are also speculations in the market that with RJio’a launch of its 4 services, the pressure on the pricing will increase. It will also force out smaller players and may lead to consolidation.
Bharti group’s Sunil Mittal recently said:
Reliance Jio Infocomm’s proposed launch is driving consolidation in the telecom sector and will intensify pricing pressure, but Bharti Airtel is prepared to meet all competition.
If you believe the market watchers, they are getting watchful of stocks such as Bharti Aritel’s and Idea’s. Other telecoms stocks such as Tata Communications has receded. Whereas, the enablers who are leasing their infrastructure to Reliance Jio, are seeing growth. These stocks have grown close to 20% in past 5-6 months.
All we can say is if Reliance Jio has taken so long to launch its services, for sure they would have been working on something which will really disrupt the market. If not in technology, they will hit the market with their pricing. Lets wait and watch.