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CRISIL Research Says Jio’s Fibre-to-Home Pricing Non-Disruptive, Unlikely to Drive major Churn

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Plans and tariffs of Reliance Jio’s fibre-based broadband services are “non-disruptive” and “unlikely to shake things up” the way they did in wireless space, according to CRISIL Research.

“CRISIL Research believes the plans are unlikely to lead to a significant churn in the market,” the report said.

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL’s majority shareholder is Standard & Poor’s, a division of McGraw Hill Financial and provider of financial market intelligence.

On September 5, billionaire Mukesh Ambani’s Jio had announced launch of its fibre-based broadband service, offering minimum internet speed of 100 Mbps for Rs 699 a month. JioFiber will offer free voice calling anywhere in the country, unlimited data and video conferencing.

Annual subscribers will get 4K set top box, for streaming TV channels, free while a 4K television set would be complimentary with plans with higher payouts such as ‘Gold’ and above.

“The lack of pricing aggression and non-attractive bundled pricing would result in limited disruption in the under-penetrated wired broadband market. Further, higher non-refundable deposit fee of Rs 2,500 and additional cost for premium content would also dampen prospects,” the report said.

It noted that consolidation in the sector is some time away.

“Further, emerging developments in terms of pricing in the television distribution space will remain a monitorable. So intense attrition is unlikely in the road ahead,” it added. PTI MBI

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