India’s disruptive new mobile entrant Reliance Jio Infocomm will offer internet access, videos and voice calls for less than Rs 1,000 a month when its wired broadband services are launched later in the year, Mint reported on Thursday.
Jio, backed by the country’s richest man Mukesh Ambani, is testing its fibre-to-home services in some cities, including New Delhi and Mumbai, the report said citing an unidentified person aware of the matter.
An email sent to Reliance Jio Infocomm did not elicit a response at the time of publishing the story.
It's been about 20 months since Ambani entered with Reliance Jio and rattled Indian telecommunications industry by making voice calls -- the core offering until then of a dozen mobile operators -- absolutely free.
Since Jio's September 2016 launch, smaller incumbents have sold out, closed down or filed for bankruptcy, while the ruling troika of Bharti Airtel , Vodafone Plc's India unit and aluminum billionaire Kumar Mangalam Birla's Idea Cellular are hemorrhaging. Vodafone and Idea are also merging.
As part of the wired broadband trials, Reliance Jio is currently offering free broadband with unlimited internet at 100 megabytes per second (mbps) against a security deposit of Rs 4,500, the report said.
The company intends to recreate the success it achieved in the telecom sector through aggressive pricing.
On May 1, the government approved a proposal to permit internet telephony, which allows users to make voice calls using a broadband internet connection instead of a traditional public switched telephone network.
Ahead of Reliance Jio broadband launch, rivals such as Bharti Airtel are also stepping up their games. Bharti Airtel is trying to push its home broadband offerings in new cities and expand its coverage in cities where it is already present.
Disclosure: Reliance Industries, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.