MUMBAI: Now, even DTH players are growing wary of the threat from Reliance Jio. Even as the registrations for Jio’s GigaFiber have commenced, one of the oldest DTH networks, Tata Sky, has ventured into the fixed line broadband sector in 12 cities.
Last month, Mukesh Ambani-owned Reliance Jio formally announced the rollout of Jio GigaFiber. The new disruption in the market created an ambience of cautiousness predicting that it could affect India’s multi-billion-dollar cable TV and DTH businesses. In a bid to secure market share, Tata Sky has now joined the race.
Mumbai, Thane, Delhi, Ghaziabad, Gurgaon, Noida, Pune, Bhopal, Chennai, Bengaluru, Ahmedabad, and Mira Bhayandar will be the first to get the service. The new plans are available on five packages including one, three, five, nine and twelve months. The data speed and limit will vary depending upon the type of the package. Starting from 5Mbps, the speeds will go up to 100Mbps. For monthly and three month plans, a one-time amount of Rs 1200 will be charged at the time of installation with which a wifi-router will be given free of cost. Rest of the packages will not require any installation charge. There are five add-on plans called ‘Quota on Demand’ which will only be valid through the validity period of the base pack. The pricing seems costlier than that of local cable players while there’s already a perception that Tata Sky is a premium service.
Jio lured customers with several additional amenities including Jio Giga TV set top box. The way it wrecked the telecom market with cheap data pricing, it was feared that it could disrupt the broadband sectors as well and can emerge as a replacement to DTH and cable players. In this regard, it could be tough for Tata Sky with its limited amenities to attract more users.
Comparatively, India has low penetration in fixed broadband sector. A report from Media Partners Asia said India’s FLBB penetration was expected to increase to 10.3 per cent from the present single digit share by the year 2022. Moreover, as content and applications keep getting heavier and denser in size, FLBB high speed broadband solutions could be ideal for offices and homes. Hence, unexplored opportunities of FLBB can fuel the growth of new players also.
