Jio's Launch Brings Worry for Airtel, Idea and Vodafone: Here's why

BANGALORE: Coming March, Reliance will launch its telecom company Reliance Jio which is expected to bring a revolution in the digital space in India. The company would deliver end-to-end digital solutions in various sectors of the economy there by bridging the gap between the rural and urban sector.

Interestingly, even before its launch the company has made it to the headlines. The soon-to-be launched 4G service form Reliance industries has brought much to worry for other telecom companies like Airtel, Vodafone and Idea.

According to brokerage CLSA, the yet-to-rolled-out telecom company, Reliance Jio, is estimated to acquire 80 Mn 4G users in the coming two years, reports Business Insider.

Setting a wave of tough competition, Jio will also have more than half of the existing users of Airtel, Vodafone and Idea.

As per the brokerage’s analysis of 17 service launches, every time a new player enter the industry, it is likely to gain 2-5 percent of the market share after having spend eight quarters with six to seven operators.

However, Reliance Jio, as per CLSA, will acquire 7 percent of the share by March 2018, indicating its better performance than rest of the companies.

"We expect over 55% of its subscribers to come from Bharti Airtel (15 million), Idea Cellular (10 million) and Vodafone India (20 million)," said CLSA.

On the eve of Reliance founder chairman - Dhirubhai Ambani's 83rd birthday, employees working for Mukensh Ambani got an access to this 4G service far before its commercial launch.

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