Jio ahead of other operators, but lower than Airtel in 4G speed, says report
Posted on: 04/Feb/2017 12:22:42 PM
A report by Credit Suisse has said that Reliance Jio network coverage is significantly ahead of the other operators but the newcomer trails Airtel in 4G speeds given the high load on its network during the free offer period.
According to the report, Our conclusion is that Jio`s network coverage is significantly ahead of the other operators. Jio has good coverage in 80 per cent plus of cities surveyed, compared to less than 30 per cent for the others. The difference is even more stark when compared only with 4G networks of incumbents (sub-15 per cent of cities). Jio was probably bogged down by load. We also studied the network speed results across all these locations. Airtel 4G offers the best download speeds in general (12Mbps plus). Jio, Vodafone and Idea are close to each other (7-8Mbps). We suspect Jio`s speeds are impacted by the high load on the network in the free offer period.
Jio carries 90 per cent plus of all data traffic in the country currently while its network capacity share is closer to 35 per cent. The competitive pressure is expected to sustain. Significant pressure on fundamentals will continue in coming quarters from Jio. We have already started seeing the impact of Jio on the incumbents` numbers (Bharti 3Q). Our study here shows Jio has built a significant lead in terms of network coverage, and the incumbents have a fair amount of catch up to do (especially on 4G). Importantly, going by recently announced enhanced capex plans, the company continues to invest.
