New JioFiber plans starting at Rs 399/month announced

Reliance Jio on Monday launched a new set of tariff plans for JioFiber starting at Rs 399 per month and then coming in at Rs 699, Rs 999, and Rs 1,499 per month. As part of the new offer, JioFiber is offering a 30-day free trial option to new consumers activating their services from September 1. As part of the trial period, Jio will offer 150 Mbps of unlimited internet, 4K set top box with access to top 10 paid OTT apps at no cost and free voice calling. It will also provide the option of taking the service back, should the customer not be satisfied with the service.

In terms of internet speed, the Rs 399 plan offers unlimited internet with 30 Mbps, Rs 699 at 100 Mbps, Rs 999 at 150 Mbps and Rs 1,499 at 300 Mbps speed. While all the plans will come with unlimited voice calling, the Rs 999 and Rs 1,499 plans will also offer 11 OTT apps and 12 OTT apps, respectively, along with the JioFiber subscription.

These plans are set to heat up competition in the fixed broadband (FBB) space further, which has gained traction after the large-scale work-from-home culture that has started post the Covid-19 induced lockdown. FBB, which so far has been an entertainment medium, is fast turning into a necessity, with people now consuming large amounts of data not just for entertainment but also for work.

India is an under-penetrated wired market for both telephony and broadband. FBB subscribers have grown at a CAGR of 4% to 19 million vs mobile broadband sub growth of 53.9% to 606 million in the past six years.

FBB penetration here is just 6.1% against 80-95% for many developed countries. China has an FBB penetration of 86%, according to a recent report by ICICI Securities. FBB+OTT viewing is a premium service in India, which costs over Rs 1,400 per month in contrast to less than Rs 300 for cable and direct-to-home (DTH) service.

At present, among the private FBB providers, Bharti Airtel is a significant player with 2.4 million subscribers and 12.6% market share. While Bharti has increased its presence to 111 cities from 87 cities in FY17, Jio plans to roll out JioFiber services to 1,600 cities and towns.

Jio director Akash Ambani said: “JioFiber is already the largest fibre provider in the country with over a million connected homes. After making India the largest and fastest growing country in mobile connectivity with Jio, JioFiber will propel India into global broadband leadership, providing broadband to over 1,600 cities and towns.”

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