HOME > BUSINESS > Reliance Jio has over twice the high-speed data capacity of Bharti Airtel – Credit Suisse

Reliance Jio has over twice the high-speed data capacity of Bharti Airtel – Credit Suisse

reliance-jio-vs-bharti-airtel-3g-4g-capacityThe research wing of Credit Suisse, the international financial services and brokerage firm, said Reliance Jio — the telecom arm of Mukesh Ambani-led Reliance Industries — is already far ahead of market leader Bharti Airtel and other competitors in total wireless network capacity.

It found that Reliance Jio is home to a whopping 58% of the total wireless high-speed data capacity in India. Airtel accounts for 23% and Idea 8%.

It reached this conclusion after multiplying the number of base stations owned by each operator with the quantum of spectrum and adjusting it for technology efficiency. Credit Suisse analysts Sunil Tirumalai and Viral Shah assumed that 4G base stations would give 50% more capacity for the same amount of spectrum compared to 3G and that 3G would give 50% more capacity than 2G.

If after taking 2G capacities, they found that Reliance Jio is the leader, commanding 32% of the total network capacity in India across all wireless technologies. Bharti Airtel is at second place with 22%, followed by Vodafone at 13% and Idea at 11%.

The numbers are important as they point to the scale of the impending roll-out of 4G services by Jio.

DATA PRICES TO CRASH?

But they are also important due to another key reason: their impact on data prices going forward.

Credit Suisse pointed out that such a massive increase in wireless capacity can only have one result — a sharp decline in the price of wireless data.

At present, the three main 3G operators charge around Rs 230 per GB of wireless data, making wireless broadband more or less totally unaffordable for the vast majority of Indians.

However, with the advent of 4G technology — pushed by players like Reliance Jio — the price of wireless data is all set to crash to more affordable levels.

Even though companies like Idea Cellular has not converted most of their spectrum to 4G, they are already struggling with low utilization of their capacities and base stations.

For Idea, pointed out Credit Suisse, total utilization of data capacity has fallen to 15-25% from 40-60% a few quarters ago.

In other words, even if Idea can sell 4-6 times as much data as it is selling now without seeing a big jump in operating expenses (though it would create congestion in inner city areas and during peak hours.)

Ideally, an operator aims for a utilization number of around 50-60% or so to ensure both optimum utilization as well as a decent experience for its subscribers.

“Falling capacity utilisation with slowing growth shows the sector is ripe for sharp data tariff
cuts (we almost wonder why the incumbents are not taking pre-emptive price cuts already,
instead giving new entrant an opportunity to offer that as a differentiator to customers),” the analysts said.

4G OVERTAKES 3G

The reason for the sudden increase in network capacity is the introduction of 4G technology.

From financial year 2011 to 2014 — when most of the expansion was on 2G and 3G — network capacity was growing only by around 11% per year, said the analysts.

data-capacity-3G-4G-growth-indiaHowever, starting from April 2014, network capacity (voice + data) has exploded at 37% per year due to the introduction of 4G base stations by Reliance Jio and Bharti Airtel. As a result, the total wireless capacity has jumped 88% in the last two financial years.

This also means that 3G is unlikely to be a dominant technology in India in the same way 2G was.

Total network capacity on the main 3G band of 2100 MHz today accounts for just 13% of the total, and together with 900 MHz 3G (so-called platinum 3G), total 3G capacity is just 16% of total. In comparison, total 2G capacity in India is 45%.

spectrum-capacity-india-bandsOn the other hand, despite having less than 60% base stations compared to 3G, 4G already accounts for 39% of the total capacity in India, according to the analysts.

In other words, with just 59% of the towers as 3G, LTE already offers close to two-and-a-half times as much data carrying capacity in India today.

Out of the 39%, nearly half — or 18 percentage points — is provided by the 2.3 GHz band (band 40), with the rest being split between the 1800 MHz (band 3) and 850 MHz (band 5).
[socialpoll id=”2365207″]

Follow ULTRA.news
Reliance Communications says MTS merger to be closed in 2 weeks, gets DoT nod Reliance Communication Ltd said it received the approval of Department of Telecommunication (DoT) for its merger with Sistema Shyam Teleservices Limited or SSTL, which runs MTS branded services in India.With this, the Anil Ambani Group company has received all the major regu...
BSNL gives ‘free broadband for 1 month’ via FB, Twitter State-owned Bharat Sanchar Nigam Ltd said it would offer one month of its wired services -- DSL, landline or fiber -- free if the booking is made via Twitter or Facebook.The user will have to pay security deposits and installation charges, if any. However, he or she will get...
Why Reliance JIO’s new tariff plan is BAD for Bharti Airtel, Idea & Vodafone Airtel's stock performance (2002-2017)The stock of Bharti Airtel is at a two-year high, not far from its life-highs of late 2007, but going by the latest tariffs unveiled by Reliance Jio, investors will do well to hold off on the bubbly for a while longer.Airtel closed a...
JIO Wallet Offers: Paytm, Amazon, PhonePe give cashback on 399 recharge Wallet players like Paytm, Mobikwik, PhonePe and AmazonPay have come up with cash back offers for Reliance Jio users who want to take advantage of the Rs 399 recharge scheme valid till today midnight.Last week, India's largest wireless Internet provider said anyone rechargin...
The Economics of Bharti Airtel’s 7777 offer on the iPhone 8 Bharti Airtel announced that it will sell high-end smartphones online with instant financing.The phones, including the iPhone 8, will be available at low downpayment and bundled monthly packages, which will make them more or less free of charge.The model was first tried ...
Bharti Airtel merges Ghana arm with Tigo of Millicom Bharti Airtel said it is merging its operations in the African nation of Ghana with the local unit of Millicom International Cellular."Under the joint agreement, Airtel and Millicom will have equal ownership (50:50) and governance rights in the combined entity, which will ha...
Reliance Jio’s New 4G Plans: No More Tariff Increases? Jio's new 4G tariff from Oct 19Reliance Jio has unveiled a set of new plans that will come into effect from tomorrow, effecting a price increase of about 15% to existing tariff.The phrasing of the new plans also suggests that these are 'regular' plans, and not promotiona...
Reliance Jio to withdraw Rs 399 plan next week Most customers of Reliance Jio, the country's largest telecom operator by volumes, will not be able to get the 84GB-for-399 plan starting next month, the company's deputy chief financial officer V Srikant said on Friday.Asked how the company's average revenue per user (billi...
Surprisingly, Reliance Jio is already profitable at PAT level Reliance Jio has reported revenue of Rs 7,213 cr, including GST, and an operating profit of Rs 261 cr for the second quarter of the financial year.However, after deducting costs related to the wear and tear of its machines, Reliance Jio reported a pretax loss of 414 cr. This...
Reliance Jio breaks even on opg level, 9.62 GB avg consumption per month Reliance Jio has reported revenue of Rs 7,213 cr and an operating profit of Rs 261 cr for the second quarter of the financial year.Per capita data consumption was 9.62 GB per user per month.Average voice consumption was 626 minutes per month during the period, it added. ...
BSNL to increase minimum broadband speed to withstand Jio Fiber Existing BSNL plansState-owned telecom provider Bharat Sanchar Nigam Ltd will increase the speed cap on all its DSL and Fiber broadband plans to 10 Mbps. At present, most plans have a speed cap of 4 Mbps.However, higher speeds will be available only in areas which are re...
Tata Tele acquisition good for Bharti Airtel – Fitch Bharti Airtel Limited's (BBB-/Stable) announcement that it plans to acquire the consumer mobile operations of Tata Teleservices and Tata Teleservices (Maharashtra) Ltd (Tata Telecom business) is positive for the deal participants as well as the industry, Fitch Ratings said.B...
Reliance Jio quarterly numbers to be announced today; new tariff plans eyed Reliance Industries, the parent of telecom operator Jio, will announce its quarterly performance numbers at around 5 pm today.Besides its core oil and gas business, the company will give an update on the operations of its telecom unit.Some in the market even expect it t...
Tata Teleservices to merge mobile business with Bharti Airtel Bharti Airtel Limited, India’s largest telecommunications services provider and Tata, India’s leading conglomerate, today announced that they have entered into an understanding to merge Consumer Mobile Businesses (CMB) of TTSL and TTML into Bharti Airtel.The move is likely ...
Reliance Jio to launch new plans on Thursday, offers 100% cashback Reliance Jio, India's most popular wireless data provider, said it will introduce new plans from Oct 19, and that it was offering "100%" cashback on its popular recharge of Rs 399 that gives three months of services.In a promotion put up on its website, the company said the ...
Airtel counters JioPhone with smartphone at Rs 1,399 net price Bharti Airtel has announced a scheme to offer a 4-inch smartphone at an effective price of Rs 1,399 -- after cash backs -- to take on the challenge posed by Reliance Jio's Jiophone.The customer needs to make a down payment of Rs 2899 for the 4G smartphone. He will get a cash...
Idea, Airtel offer 84 GB 4g data for Rs 400 to target users Airtel PlansIdea Cellular and Bharti Airtel are offering 1 GB of 3G or 4G data per day for 84 days at a price of around Rs 400 in select circles, including voice benefits, matching Jio's lowest tariff.The offer is available only for targeted users.For example, for so...
To arrest subscriber decline, Idea offers 84 GB, on-net calls for 230 rupees Idea Cellular, the third largest telecom operator in India by revenue, has started offering new customers 84 GB and free on-net calls for 84 days for just Rs 230 in the Kerala circle.Similar schemes are likely to have been launched in other circles as well.It also offers ...
Idea Cellular offers 28 GB 3G/4G data for Rs 250 Idea Cellular, which has been under pressure in recent months due to aggressive offerings from rivals Bharti Airtel and Reliance Jio, has unveiled a new promotional offer that gives 1 GB per day for 28 days at a price of around Rs 250.Unlike other plans, this one does not off...
RCom likely to shut more 2G, 3G networks, sell the spectrum Reliance Communications, which announced it was abandoning plans to merge with Aircel Cellular, indicated that it would focus on two segments - 4G and wired. Within wired, it would focus on enterprise services.The disclosure indicates that the company, -- which recently shut ...