JioAirFiber unlocks $7-10 billion revenue potential in India’s broadband market : Jefferies 

Reliance Jio’s recently launched fixed wireless access service, JioAirFiber, is projected to unlock a massive revenue opportunity of $7-10 billion in India’s broadband market, according to estimates by brokerage house, Jefferies India.

JioAirFiber is a 5G fixed wireless access service launched by Reliance Jio in eight major Indian cities. It provides fiber-like high-speed internet to homes and offices through the airwaves instead of cables. JioFiber offers lightning-fast speeds up to 1Gbps along with access to over 550 TV channels and 14 popular OTT apps.

Factors Favoring JioAirFiber’s Growth

Analysts at Jefferies believe Jio is well-positioned to rapidly scale up JioFiber and capture a significant share of the broadband market. Jio’s extensive investments in 5G network infrastructure, adoption of advanced Standalone 5G architecture with network slicing technology, and strategic acquisition of Mimosa Networks to enhance last-mile connectivity, provide it strong competitive advantages.

JioAirFiber’s competitive pricing bundled with rich entertainment offerings make it an attractive value proposition for millions of Pay TV households looking to upgrade to broadband. Its monthly plans start at Rs 599 with speeds up to 30Mbps and go up to Rs 3,999 for 1Gbps plans.

Addressing India’s Massive Untapped Broadband Market

India currently has only 35 million wired broadband connections but 120 million Pay TV households. Jefferies estimates there are 85 million TV households yet to adopt fixed broadband, presenting a massive greenfield opportunity for providers like Jio.

JioAirFiber can potentially tap into this hugely underserved market and attract 100 million subscribers within the next few years. Assuming a modest average revenue per user (ARPU) of Rs 500-700 per user. JioAirFiber is priced in line with JioFiber (Jio’s fiber optic broadband service), suggesting that both services will offer a similar experience.

Jefferies highlights potential additional revenue sources, including cloud PC and gaming, home networking, and security solutions.

JioAirFiber plans include access to over 14 popular OTT applications, such as Netflix, Amazon Prime, and JioCinema Premium, allowing users to stream their favorite movies, TV shows, and more. JioAirFiber also aims to provide smart home solutions, enabling users to control and manage various aspects of their homes, such as lighting, security, and appliances, through connected devices.

Benefits of Standalone 5G

Unlike other operators, Jio has built an advanced Standalone 5G network from the ground up. This architecture offers significant advantages like faster speeds, lower latency, and network slicing capabilities.

Network slicing allows Jio to allocate a dedicated slice of its 5G network to JioAirFiber users and guarantee consistent speeds even during peak usage. This ensures a seamless broadband experience comparable to optical fiber connectivity.

Enhancing Last-Mile Reach

Jio’s recent acquisition of US-based Mimosa Networks strengthens its capabilities in fixed wireless access, especially in last-mile connectivity. Mimosa’s solutions equipped with cutting-edge WiFi 6 and 7 technology can provide fiber-like speeds over the air without any cables.

This allows JioAirFiber to extend its reach to millions of households and business complexes where laying optical fiber is difficult. The unlicensed spectrum technology by Mimosa will further augment JioAirFiber’s capacity and coverage.

In summary, JioAirFiber is primed to disrupt India’s broadband landscape. Its extensive 5G infrastructure, competitive pricing, rich bundled offerings and innovative technologies make it well-positioned to unleash the country’s massive broadband adoption potential. JioAirFiber could emerge as a game-changer in connecting the next billion Indians to high-speed internet.

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