JIOFIBER-IMPACT ON THE STOCK MARKET
By Anushi Surana |
How Share Market will React to it? | Day Trading | 0 comment | 13-September-2019 |
Reliance Jio India’s most leading wireless connection provider with 2nd largest market share and millions of subscribers in past 3 years can be a big game-changer in a broadband sector with its new launch of JioFiber with already 15 million registrations in 2018 from more than 1000 cities across India with unexpected target of 70 crore plus connections within a couple of years. JioFiber broadband has come up with a bunch of services for its potential targeted users which have tightened up the competitors with a risk of capturing large market share in broadband, DTH and Entertainment by providing high-quality services at low prices. Jio has come up with the Services like free unlimited voice calls, minimum 100 Mbps broadband speed, low rate international calling with extra services like gaming, OTT media free services, new movies by mid-2020 and entertainment apps are covered under JioFiber plan with subscriptions starting from Rs.700 up to Rs.10,000.
HOW JIOFIBER CAN BE VULNERABLE TO OTHER MARKET PLAYERS:
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COMPANIES BROADBAND STARTING PLAN
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PRICE
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SPEED
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Airtel V-Fiber
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Rs.1099
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100 Mbps
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ACT Fibernet
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Rs.749
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100 Mbps
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Tata Sky
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Rs.1599
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100 Mbps
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Hathway
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Rs.699
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100 Mbps
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JioFiber
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Rs.699
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100 Mbps
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Experts Says it can be vulnerable for other major broadband players like Bharti Airtel which provide same services on 100 Mbps speed with a starting monthly subscription of Rs 1099 which is comparatively higher than Jio Fiber basic plans, DTH service providers are providing 100 Mbps speed from lowest Rs.699 to Rs.1599 per month which doesn’t include telecom services. Where on the other end broadband players also provide 50 Mbps monthly broadband speed at a starting price of 350-400 which is half the price of plan. Some has also predicted that this plan can create pressure on DTH service providers and Multiplexes.
ESTIMATED IMPACT ON STOCK PRICES OF TELECOM AND DTH PLAYERS:
Reliancetotal revenue from telecom is Rs 10,900 crores where Jio average Revenue per customer is Rs 126.2 and Reliance in Broadband sector is leading with market share of 55.54% which is projected to accelerate with more broadband subscribers in future with increase in the shift of users choices for good speed and extra services at decent price. This acceleration is clearly indicating a hike in Overall Targeted Revenue of Reliance Industries for the next 3 years which is projected to be triple in comparison to current revenue.
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COMPANIES
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STOCK PRICES ON
09-08-2019
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CURRENT STOCK PRICES
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Reliance Industries
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1162.10
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1234.84
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Bharti Airtel
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371.10
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353.50
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Vodafone Idea
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5.35
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5.70
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Dish TV
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23.25
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23.25
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MTNL
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6.55
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6.05
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After the launch of JioFiber, there is a hike in Reliance Stock prices from 1162.10 to 1234.84 which is projected to increase more in future with an increase in demand for broadband connections. A high drop-down is expected in the above figures in current stock prices of all other competitive players in the market because a large chunk of users is expected to shift their low-quality services to high-quality services at a decent price. Stockist analysed that Jio has the strategy to acquire customers through a hardware which can affect the DTH players Shares very badly. For more information sign up on our website at - https://www.researchinn.com/