Mumbai, Reliance has ready to launch the Dream Plan of the Broadband Service Segment after making a big deal in the telecom sector. Reliance Industries Chairman Mukesh Ambani has announced to launch Fiber-based Home Broadband Service. Launching it in 1,100 cities, more than 50 million households will be targeted. Selling of shares of cable companies started only after the news came to light. It is believed that this plan can cause turmoil in the Broadband Service Segment.
Ambani has made strong preparations to reach out to the country’s home broadband segment. Registration for this will start on August 15. It is being promised ‘hundreds of megabytes, even gigabytes of data speed per second’. This allows users to view movies with zero buffering and download videos very fast.
Top 5 Fixed Broadband Club is Target
Reliance Industries Chairman Mukesh Ambani said in the AGM, “While the country has achieved global leadership in the broadband market, we are quite behind the poor infrastructure in fixed line broadband.” He said that the company is India’s top 5 Fixed broadband club wants to see. Broadband service has been named Jio Gigafiber.
Smart service with great features
It will also introduce company router and set-top box. There will also be a voice command feature for the remote. With this, the company will offer substantial content in news and entertainment segments with regular TV channels, which the group has prepared. Smart Home Technology, Surveillance Offerings, Remote Monitoring of Home Appliances, Digital Shopping, Gaming, Home Conferencing, and other features can also be provided.
Many companies will grow tension
Now these services are running in many cities. This offer of Jio can increase the problems for Bharat Sanchar Nigam Limited and Bharti Airtel in the home broadband segment, which are 58% and 12% market share, respectively.
1.8 crore people using services
1.8 crore people of the country are still using the home broadband service. At the same time, 40 million mobile phone subscribers from 1 billion mobile phone users are using broadband service. In comparison, the number of home broadband users is quite small. This offer of Jio will increase the pressure on cable companies like Den Networks and Hathway Cable & Datacom and DTH operators like Tata Sky and Dish TV.
What did Ambani say?
In the 41st Annual Shareholder Meeting of Reliance, Ambani said that in Consolidated Business Profit of Reliance 2018, Consumer Business Contribution was about 13%, which was 2% more than last year. He said that the diversified company has reached a critical juncture now because it is transforming itself into a ‘technology platform company’. Reliance’s shares were trading at Rs 965 with a downturn of 2.5% on Thursday, while the Sensex closed down 0.2%. Reliance’s share was up 3% this week before the AGM this week.
Immediately results appeared
On Thursday, shares of Bharti Airtel and Idea Cellular stood at Rs 363.40 and Rs 54.45, down 0.8% and 1.3% respectively. DEN’s stock slipped 10.7% to Rs 66.55 and Hathway’s 15.4% came down to Rs 20.60. At the same time, Dish TV shares were up 0.6% at Rs 72.30.
Bank of America Merrill Lynch report says that in the next few years, the growth of Jio will have a negative impact on telecom, media and internet companies. He has said that much depends on how Jio works on new business plans. According to him, especially the e-commerce segment can increase the stir, where he will challenge companies like Flipkart and Amazon. There is no shortage of funds for these companies.
Companies will respond to challenge
However, the brokerage house has also said that there is a delay of 6-12 months in ‘Meaning Launch’. In its report, it has been said that Bharti and other broadband companies can also answer the challenge of live by bringing a connected home offer. In his speech, Ambani has targeted 10 million subscribers for the company’s 4G feature phone. Now the company has 25 million users.