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Reliance Jio has potential to acquire 80 mn 4G users in two years: Report

Reliance Jio Infocomm is expected to acquire 80 million 4G customers in next two years, with more than half expected to switch over from India’s top three carriers – Bharti Airtel, Vodafone India and Idea Cellular, finds brokerage and investment group CLSA. According to a report in the [url=http://tech.economictimes.indiatimes.com/news/internet/reliance-jio-can-acquire-80-mn-4g-users-in-2-years-clsa/50556333]Economic Times[/url], CLSA anticipates the 4G boom will lead to an enormous jump in data revenue to Rs. 80,300 crore over the next two years with Airtel, Vodafone and Idea commercially launching their faster wireless internet service and with Reliance Jio expected to follow suit by March.
Citing its analysis of 17 service launches across eight Indian circles over the past 13 years, CLSA said in the same [url=http://tech.economictimes.indiatimes.com/news/internet/reliance-jio-can-acquire-80-mn-4g-users-in-2-years-clsa/50556333]report[/url] that new entrants usually gain a 2 to 5 percent market share within eight quarters of entering a market with six to seven operators. CLSA feels that Jio has potential to gain a 7 percent market share by March 2018 which essentially means 80 million subscribers and a 16 percent market shares in data subscribers.
Analysts at CLSA add that Jio will see more subscription in urban area. Analysts also believe that Jio will target the data-heavy markets as they are early adopters of 4G.
The [url=http://tech.economictimes.indiatimes.com/news/internet/reliance-jio-can-acquire-80-mn-4g-users-in-2-years-clsa/50556333]report[/url] also notes that CLSA expects operators with a weaker data spectrum footprint to cut voice realisations in a desperate bid to arrest subscriber churn, which could trigger a 5 percent decline in voice revenue per minute (RPM) in FY17-18 for the top carriers. “This has already started with Vodafone offering 20-40 percent discounts to Bharti Airtel (rates) in Delhi and Mumbai,” CLSA said in its note.
Last month, Reliance Jio saw a [url=http://tech.firstpost.com/news-analysis/reliance-jio-soft-launches-its-4g-network-with-employees-ahead-of-commercial-launch-of-jio-services-292626.html]pre-launch rollout[/url] with approximately 70,000 employees of Reliance Industries getting access to Jio services. “My team is of the sample size of India,” Mukesh Ambani, Chairman, Reliance Industries told the top leadership of the company, explaining the rationale of an employee launch on 27 December, 2015.

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