Will Upcoming Reliance Jio DTH Service Bring Consolidation In The Broadcasting Sector?

It has been nearly a year since the launch of Reliance Jio GigaFiberservice and the entire nation is eagerly waiting for the public launch. There are some rumours saying Reliance Industries might announce the commercial launch date of GigaFiber along with much-awaited Jio DTH service at the upcoming Annual General Meeting which might take place later in July. However, nothing is confirmed for now. Reliance Jio is said to bundle broadband, television and landline services under one bill. The Indian DTH sector is currently reeling thanks to the implementation of the new Trai mandate. Both DTH and Cable TV subscribers are interested in moving to OTT platforms which has become a worry for the operators. The Jio DTH service is said to be an IPTV model, and once it rolls out, we might see another wave of consolidation in the DTH sector as well.

Reliance Jio and Its Disruptive Ways in India

It is very well known that Reliance Jio has already swept the telecom industry with its dominance. The Mukesh Ambani led telecom operator is on the path of becoming the telecom market leader in India because of the number of subscribers that it is having, and even now, the rate of subscriber addition for the company remains similar. The ways of Reliance Jio have also sent a ripple through the telecom industry, and in some ways, the rules of the games have also changed because of this change in the market position. This phenomenon in the market has also reduced the number of players in the country in this sector from plenty to a handful, and this has sent a wave of power change in many areas of the country.

Consolidation in DTH Industry with Airtel Digital TV and Dish TV Merger

Now that Reliance Jio has already established its foothold in the telecom industry, the next avenue for the Mukesh Ambani led telecom operator which the people believe is in the DTH industry. With the advent of the Reliance Jio GigaTV, we think that this statement might get more and more reinforced. We also already have news about the likely merger of Dish TV with Airtel Digital TV, the DTH wing of Bharti Airtel which would be the first major merger in the sector. This merger would strengthen Airtel and Dish TV both against Reliance Jio’s newly launched broadband and TV service, GigaFiber and the GigaTV. It is likely that this battle between Reliance Jio and Airtel could become the next pivotal thing in the industry and might drive consolidation in the sector. This synergy would make a DTH company with a whopping 61% market share.

What to Expect from Reliance Jio in DTH Industry?

There also many stirs being caused by Reliance Jio in the industry even before the commercial launch of the Reliance Jio GigaFiber and the GigaTV. Currently, we know that these services by Reliance Jio remain in a trial phase in metro cities. However, we also know that Reliance Jio could be close to rolling them out in new cities in a matter of a few months only.

The telecom operator is likely to introduce a bundled Triple Play plan for the subscribers including broadband, TV and landline. This plan by the telecom operator is expected to be charged for Rs 600 per month, and in this rental, subscribers will be able to enjoy 600 channels, 1 Gbps broadband and unlimited landline services.―Telecom Talk

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