Reliance Jio broadband plan with many facilities may put DTH (direct to home) companies ‘most vulnerable’. Bank of America Merrill Lynch expressed this apprehension in a report released on Tuesday. According to the report, some of its disadvantages are likely to be due to Bharti Airtel, as it will increase competition by entering the internet services sector which is available in Jio corporate and homes.
Reliance announced on Monday to launch ‘Jio Fiber’. Under this, the company is offering internet plan with a minimum speed of 100 Mbps. The price of these plans will start from Rs 700 monthly. Along with this, the company is also offering many other facilities like shopping, education, gaming and free voice calling. This will not directly affect the broadcasters, but will have an indirect effect on their user revenue. In the long run, this will affect advertising spend if more attention is paid to creating good quality content to compete with Amazon Prime and Netflix and advertisers spend on online content.
The report does not assess the loss on Bharti Airtel’s broadband business revenue. However, it has been said that its impact will be limited as the reach of fixed broadband remains below eight percent. In such a situation, Jio will have the opportunity to add new customers on a large scale. In this case, no reply was received to the e-mail sent to Bharti Airtel.