KOLKATA: Reliance Jio’s entry with disruptive offers of free voice calls, roaming and possibly the world’s cheapest data plans will push smaller mobile service providers such as Aircel, Telenor India, Tata TeleservicesBSE -0.97 % and Reliance Communications to the fringes, if not to exit altogether, analysts say
“In the medium term, Reliance Jio will ensure the likes of Aircel, Telenor India, Tata Teleservices and RCom will exit,” said a UBS note.
This position was seconded by brokerage BNP Paribas, which said Jio’s big bang entry is likely to “expedite exit of weaker operators dependent on cheap voice and not invested in data networks. These (weaker operators) still account for 25% of industry revenue and a likely 35%-40% volume share, given their low pricing.”
Deutsche Bank said weaker players with constrained financials will not be able to replicate Jio’s aggressive offers, and hence would eventually cede revenue-share to ..