With Reliance Jio buying stakes in the two most prominent cable companies in India, DEN Network and Hathway cable, it has been able to position itself prominently in this sector as compared to its competitors. Reliance has gained access to 24 million subscribers of these two cable companies. This will give the Reliance Jio a clear advantage over its closest rival Bharti Airtel when it comes to Direct To Home (DTH) service.
Economic Times reported, Swiss brokerage firm, Credit Suisse issues a note clarifying that clarifying that Reliance Jio GigaFiber will surpass Bharti Airtel in terms of accessibility of customers after this buyout.
Reliance Jio Leads DTH Sector
Reliance Jio has gained an advantage over Bharti Airtel even before the launch of its services in the country, as it surpasses Airtel in terms of reachability to the consumer.
Reliance Jio leads the DTH sector in India with access to 24 million subscribers compared to 2 million, thanks to the recent buyout of DEN Networks and Hathway Cable. Reliance Jio has also opened registrations for its services since August 15 and invested over Rs. 5.2 crores in both these companies.
Airtel will certainly be reacting to this move in the near future and strike back in the market. With Reliance Jio gaining such a major lead in the DTH sector we will see a lot of DTH users opting for Reliance Jio’s new GigaFiber service over Bharti Airtel.
Bharti Airtel will face a huge challenge to upgrade its existing subscribers from cable connections or fixed line connections to FTTH service.
There have been no comments on the part of the Bharti Airtel. The telco plans to further expand its user base by 10 million subscribers by 2021 across 100 cities.
Airtel will spend Rs 24 crores in the year 2018 and 2019 in its DTH business in a move to expand its operations rapidly.
Reliance Jio Offers More
Reliance Jio with a strong user base of 250 million Jio4G subscribers will certainly have an upper hand when it comes to striking deals with content broadcasters. Various apps like the Jio Mags, Jio TV, Jio Cinema, Jio Music, Jio NewsPaper and Jio Cloud will play a vital role in receiving attention from content broadcasters. With free offers to its services in the initial days will make it build subscribers at a rapid pace. Another player in the DTH segment along with Airtel is TataSky, facing the heat from the tuff competition that lies ahead.