Jio may impact profitability of existing operators: Analysts
Motilal Oswal Securities says there is no doubt that tariff plans for voice and data is going to be a game changer for telecom industry
Analysts are divided over the impact that Jio's tariff plans would have on incumbents. While Credit Suisse analysts maintain their cautious stance on the sector given the aggressive tariffs, those at UBS believe that the data market expansion will benefit incumbents with casualties in the medium term being smaller players such as Aircel, Rcom, Tata DoCoMo and Telenor.
They add that the addressable market for 4G currently is around 5 per cent of India's mobile users and do not expect high end users to shift immediately. Interestingly, Jio's plans are more focused on the ...
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard
First Published: Fri, September 02 2016. 08:30 IST