Vodafone & Idea hanging by thread having to bid aggressive for 4G airwave

  • Thread starter Thread starter rahul1117kumar
  • Start date Start date
  • Replies Replies: Replies 4
  • Views Views: Views 1,102
Joined
21 Jun 2013
Messages
10,365
Reaction score
11,058
The Reliance Jio offer has hit the markets by a storm. Though consumers are elated with the various freebies and offers that come with a Reliance Jio SIM, the worst hit by the extensive offers are rival telecom companies. Among the rival companies Idea and Vodafone have definitely been bruised badly as customers are seen flooding Reliance stores.

The Jio is a mobile network offering 4G internet services across India. According to the owner of the Reliance empire, Ambani, the Reliance Jio network will cover 90 per cent of India’s population by March, 2017. Ambani has gone ahead and set a target of “100 million customers for the Jio network”. Of the target set, the network’s reach has already been extended to 2.5 million users who were mainly attracted to the Reliance Jio network by the preview offer. The hype behind the Reliance Jio services is very real and much of it can be attributed to the irresistible plans that the network is offering. Ambani had revealed during the launch of the network that voice calls would be absolutely free for any calls made from the Jio network to any network. It was also announced at the launch, that national roaming would be done away with on the Jio network.

The data plans offered by the Reliance Jio network are again a force that rival telecom companies will have to recon with. Ambani reckons that the Jio data plans are “the lowest data rates anywhere in the world”. The data plans start from Rs 149, and extend all the way to Rs 4,999, covering data from 0.3 GB to 75 GB. The network also promises to provide unlimited 4G data at night. All the offers when put together are simply irresistable for customers and deal a strong blow to other telecom companies.

The infocomm has forced other companies to rethink their strategy for the upcoming 4G auctions. Even though the companies might feel a need to bid conservatively to make up for low tarrifs, Idea Cellular and Vodafone India will have no choice but to bid aggressively for 4G data airwaves according to experts. This is so that they can compete with Jio in the upcoming auctions and establish their presence across the country.

The auctions for the 4G airwaves are scheduled to take place in the month of October. The government is at an advantage due to the aggressive competition amongst the companies and expects the bidding to be fierce. The auction will be of immense importance to Idea cellular and Vodafone as their presence across the country in the 4G realm is very limited as compared to the other networks. The Idea has 4G airwaves and services in 10 of the country’s 22 circles while Vodafone has 4G airwaves in 9 and services in 8 of the country’s circles. Vodafone is all set to launch 4G services in West Bengal which would be its ninth circle, by the end of the year. However these numbers are extremely low when compared to the presence of Airtel and Jio, both of which have a pan India presence. It has become essential for telecommunication companies to compete profitably in the 4G network space to ensure their continued survival.

Reliance Jio effect: Vodafone and Idea hanging by threads while having to bid aggressively for 4G airwaves - India.com
 
Sarkar said:
Airtel 3G sucks bcoz of poor network in my area hope Voda will launch 4G.

AirTel always targets cities and metros, where they can loot without any agitations. They never care network coverage in villages and small towns. Till more than 80% of AirTel Network is in 2G only. due to Jio effect they launch 4G in half baked manner.
 
Back
Top Bottom