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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

RIL Chairman Mukesh Ambani with wife Nita and son Akash. Pic: Kamlesh Pednekar
RIL Chairman Mukesh Ambani with wife Nita and son Akash. Pic: Kamlesh Pednekar

AnalystsaredividedovertheimpactthatJio'stariffplanswouldhaveonincumbents.WhileCreditSuisseanalystsmaintaintheircautiousstanceonthesectorgiventheaggressivetariffs,thoseatUBSbelievethatthedatamarketexpansionwillbenefitincumbentswithcasualtiesinthemediumtermbeingsmallerplayerssuchasAircel,Rcom,TataDoCoMoandTelenor.Theyaddthattheaddressablemarketfor4Gcurrentlyisaround5percentofIndia'smobileusersanddonotexpecthighenduserstoshiftimmediately.  Interestingly,Jio'splansaremorefocused ...