To address this growing need of high speed Internet, telecom majors are queuing up to launch 4G data services later this year. While Reliance Jio Infocomm has recently announced that it will roll out its 4G services by December, India’s largest telco Airtel is on course for the launch of its 4G wireless data service across 44 cities. Airtel’s 4G services are already available in select cities, in an attempt to test its services before a formal launch in others later this year.
Reliance Industries Ltd (RIL) telecom arm Reliance Jio Infocomm is also testing its 4G telecom network and will soon start a beta programme to assess its network quality before commercial launch in December. RIL Chairman Mukesh Ambani in June had said that the beta programme will be upgraded into commercial operations around December this year.
Reliance will use a two-pronged strategy for ensuring device availability, using open market as well as self-branded devices under its CDIT retail format, Reliance Digital.
“Reliance Digital would be a catalyst by making available entry level to ultra premium 4G LTE smartphones… in driving the device ecosystem in India for Jio,” the company said in a post earnings presentation held recently.
Reliance Digital has over 1,200 outlets across India, including those of Reliance Digital Express and Reliance Mini Express stores, which will sell the low-cost smartphones. The devices could be priced below Rs.4,000 and broadband service can be accessed with a monthly fee of as low as Rs 300 to Rs 500.
Over the next three years, Jio has plans to more than double its optical fibre network and connect over 1 million homes by April 2016. Reliance has already tied up with over 1,000 retail ‘Jio Centre’ outlets in the country to make sure that interested customers have easy access to the new service when it is rolled out. Reliance Jio is present in all 29 States with a direct physical presence in nearly 18,000 cities and towns.
Apart from this the company has also engaged with global smartphone brands including Apple, Samsung, Huawei and Xiaomi to ensure availability of 4G devices and pocket routers across price ranges, the company said.
To take on Reliance Jio, Bharti Airtel is also reportedly planning to launch a dual mode 4G phone in the price range of Rs 4,000-Rs 12,000 by Oct-Nov, weeks before RJio’s plan to launch a 4G smartphone.
According to recent reports, Airtel has also joined hands with online retailers like Flipkart, and original equipment manufacturers like Samsung, Motorola and Xiaomi, to introduce 4G devices at affordable prices. It’s reportedly betting on the fact that its existing 3G customers will consider migrating to 4G, as the prices are not very different while speeds are significantly higher.
“For existing Airtel customers, a SIM-swap facility is available; it will enable a smooth switch to the 4G service in 10 minutes, without any disruption. The company is also looking at offering the service bundled with handsets that could be priced as low as Rs 4,000. The 4G service will be offered not only on mobile phones but also through dongles and Wi-Fi CPEs (customer premise equipment/routers). The dongles are priced at Rs 1,500 while the CPEs cost Rs 2,500. At present, the company is offering 40 GB of 4G data for Rs 2,000 (for CPEs),” according to a report by Business Standard.
Just like Reliance Jio and Airtel, Vodafone has also joined the bandwagon with the company’s CEO Sunil Sood announced recently that their 4G trials are underway. “We will be rolling out our 4G towards the latter half of the year in select towns”, he said. The company owns 4G spectrum in only 5 circles.
According to the TRAI data, Mobile and telecom market is growing on all accounts i.e the sub-segments within category are growing simultaneously. The sub-segments combination of services, handsets and accessories complete the whole market. The biggest growing ares in the present scenario is that of telecom services which holds 64% market share followed by handsets market with 31% market share. The accessories market with lowest contribution of 5% predominantly operates through grey market.
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