Ambani vs Mittal: The AirFiber Showdown 2023
The competition between the top two telecom providers in the nation has moved from 4G and 5G to residential broadband.
The Xstream AirFiber brand launch by Bharti Airtel may have been the first in this market, but Reliance Jio’s “Jio AirFiber” debut on September 19 is anticipated to be more expansive in coverage and more cost-competitive.
Although fibre broadband services and wireline broadband are comparable, the latter’s last-mile link is wireless, allowing for the provision of a greater number of connections in a shorter amount of time.
“JioAirFiber eliminates the requirement for last-mile fibre by utilising our India-wide 5G network and cutting-edge wireless technology. We can presently link about 15,000 premises each day using optical fibre.
Mukesh Ambani, the chairman of Reliance Industries, announced this during the company’s 46th annual general meeting on Monday. “However, with JioAirFiber, we can accelerate this expansion with up to 150,000 connections per day, which is a 10-fold increase.
According to insider sources, Jio would likely charge 10–20% less for its AirFiber solutions than Airtel will, including the monthly leasing and consumer premise equipment (CPE). In addition, the business plans to roll out its solutions over the entire country, as opposed to Airtel, which is just launching in Delhi and Mumbai.
According to insiders, Jio is also planning to bundle its AirFiber offering with payTV and fibre, much like how it does with its JioFiber Rs 198 internet backup package for customers who currently use services from other carriers.
Jio is now aiming to serve 200 million high-paying households and premises over the next three years, up from the 100 million it had previously discussed, thanks to a positive reaction to the pilot of AirFiber solutions.”We believe the target of 200 million homes is aggressive, given that India’s overall wired subscriber base is still 35 million and would depend on pricing,” Kotak Institutional Equities said in a note on Tuesday.
According to a recent report from the London-based brokerage company NewStreet Research, Jio is using this method to increase the market’s acceptance of fibre before upselling later on. We still believe that the business can succeed in fibre, which is a significant potential, just as it did in mobile. Jio Platforms also has high hopes for fixed wireless access, which may revolutionise the global FWA market.
Jio’s intention to transform the market from the moment it purchased 5G spectrum is another factor that is anticipated to give it an edge over Airtel in the fixed wireless access (FWA) area. The greater cost of customer premise equipment or the router used for FWA, on the other hand, has repeatedly raised concerns for Airtel, according to experts.
When announcing its Rs 80,000 crore purchase of 5G spectrum last year, Jio had stated, “Jio’s extensive fibre-based offering, now supplemented by wireless home offerings, will catapult India to leadership in home broadband services in the same way that Jio took India to global leadership in mobility services.”
In contrast, Gopal Vittal, CEO of Airtel, stated earlier this month that a connected house pass (with fibre) now costs around $90 on our network. A fixed wireless access CPE is roughly $150 in price. Going to FWA at this moment is not financially attractive because it is almost twice of that.
Up to 100 Mbps speed is available from Airtel with their Xstream AirFiber. Consumer premise equipment (CPE) is available for consumers to purchase for a one-time, refundable security deposit of Rs 2,500. The monthly cost for the same has been set at Rs 799. A 7.5% discount is also being offered by Airtel to customers who choose a six-month contract.
We are aware that Bharti Airtel has begun testing its FWA in Delhi and Mumbai at a monthly rate of Rs 799, with a minimum plan of six months and a security deposit of Rs 2,500. To encourage uptake, we anticipate RIL to price its offering competitively, according to Nomura’s study.
“Traction in JioAirFiber will rely on its cost compared to the Airtel plan offered and compared to JioFiber offerings. According to Emkay Global, the business will likely offer JioAirFiber at a lower price than Bharti Airtel’s proposal.
According to information provided by the Telecom Regulatory Authority of India, Jio had almost nine million wired internet connections as of June’s end while Airtel had 6.5 million.
As of my last update in September 2021, two titans of Indian industry—Mukesh Ambani of Reliance Industries and Sunil Bharti Mittal of Bharti Airtel—have been key players in shaping India’s telecommunications landscape. These magnates are now taking their rivalry into the new arena of AirFiber technology. As they strive to revolutionize broadband services in India, both have embarked on a mission to capture the maximum market share.
AirFiber is an advanced wireless broadband technology that provides high-speed internet access using radio frequency. Unlike traditional broadband that uses wires and cables, AirFiber uses wireless technology to transmit data at speeds comparable to, or sometimes even exceeding, fiber-optic broadband. The technology is particularly beneficial for rural or difficult-to-reach areas where laying fiber-optic cables can be expensive or impractical.
Mukesh Ambani’s Reliance Jio entered the AirFiber arena with its wireless broadband service, marketed as an easy-to-install, high-speed alternative to traditional broadband. With a strong backing from its parent company, Jio aims to disrupt the market with competitive pricing and bundled services such as streaming, cloud storage, and voice services.
Jio AirFiber offers multiple subscription plans designed to cater to a broad segment of the population.With Jio’s ecosystem of digital services, subscribers often get value-added services like OTT subscriptions.Leveraging its existing mobile towers, Jio can efficiently roll out its AirFiber services across various regions.
Sunil Bharti Mittal’s Airtel has responded to this challenge by launching its own AirFiber service, focused on providing unparalleled quality and customer service. Airtel claims to offer a more reliable, faster service compared to Jio, focusing on customer satisfaction rather than just cost-effectiveness.
Airtel focuses on delivering higher speeds and better customer service.Airtel’s long-standing history in telecommunications offers it an edge in providing more stable and mature services.Airtel has been in the telecommunications industry for decades, earning a level of trust that new entrants like Jio still have to establish.
Both companies aim to expand quickly into untapped markets, especially rural areas where AirFiber can be a game-changer. While Jio’s aggressive pricing strategy is designed to win over new users, Airtel is leveraging its reputation for quality to retain its existing customer base and attract those willing to pay a premium for better service.
Both Jio and Airtel offer bundled packages that include OTT subscriptions, voice services, and more. These bundles are strategically priced to attract different segments of the consumer base.
Both companies are also carefully navigating India’s regulatory landscape, which poses challenges like right-of-way permissions and frequency spectrum allocations. Their lobbying efforts are also part of the ongoing competition.
Another key battlefront is technological innovation. As both companies continue to invest in R&D, the AirFiber technology is expected to evolve, leading to faster speeds, better reliability, and new features.
The Ambani vs Mittal rivalry in the AirFiber sector reflects a larger narrative of competition and innovation in India’s telecommunications industry. While Jio aims to capture market share through aggressive pricing and bundled offerings, Airtel seeks to capitalize on its reputation for quality and customer service. As both giants lock horns, it is the consumer who stands to benefit from better services, more choices, and competitive prices.As the AirFiber wars escalate, the stakes get higher—not just for Ambani and Mittal, but for the future of India’s digital landscape.
