After Reliance Jio opens broadband registration, cable operators feel threatened

Reliance Jio Hathway

Reliance Jio’s mobile data technology changed the Indian cellular sector in a big way. To keep up the offerings of Jio, other mobile data service providers also changed their strategy which transformed the mobile segment for good.

Now, Reliance Jio seems set to disrupt the broadband segment.

Since the company opened registrations for Jio GigaFiber on August 15, it has received strong response from some 900 cities and towns for its high-speed home broadband services.

Jio is eyeing to commercially launch Jio Giga Fiber, which includes high-speed, wired, broadband service bundled with an internet-based television programme, in tier-1 and 2 cities.

However, the company’s presence in this segment has threatened local cable operators (LCOs) who are not strong enough to stand against the competitive offers of Relaince Jio.

The cable operators have already begun voicing their worries. They said that the company’s move to do the last mile connectivity on its own has caused an alarming situation among the cable operators. Instead of partnering with cable operators, Reliance Jio is directly approaching housing societies and resident welfare associations (RWAs) to pitch the company’s home broadband services.

According to LCOs, they are the last mile owners and have invested in the business for 20-25 years, which is now under threat.

Jio, however, says that it is taking proactive steps to resolve any last-mile connectivity challenges to prioritise and ensure timely roll-outs in markets where consumer registrations have been strong.

Experts also point out the issue for Jio to go alone in launching fibre-to-the-home (FTTH) broadband services.

They explain last mile connectivity deployments would be critical for Jio to launch its greenfield FTTH broadband services, especially since every building has to be physically connected, unlike in the mobile services business where towers are easily available and shared amongst telcos.

The development was first reported by ET.

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