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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

Kiran Rathee Malini Bhupta & Ram Prasad Sahu  |  Mumbai/New Delhi 

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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 ...

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First Published: Fri, September 02 2016. 08:30 IST