We are getting cost synergy benefits related to content and infrastructure from Jio: GTPL Hathway

“It is good now that Jio is also our partner and we might say that we are getting the  cost synergy benefits related to the content, infrastructure, or whatever Jio’s expertise is for the overall industry,” says GTPL’s Anirudhsinh Jadeja.

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GTPL Hathway’s Anirudhsinh Jadeja last month during the Q4 FY 21 earnings call said that it was good now that Jio was our partner as GTPL is getting the cost synergy benefits related to the content, infrastructure or whatever Jio’s expertise is for the overall industry. The statement came in response to a question on competitive threats from Jio and how it operated between GTPL Hathway and Reliance Jio.

We do not find a threat like that or competition. Jio’s market is spread in Ahmedabad, Baroda, Surat, and some other cities in Gujarat. GTPL covers almost majority of Gujarat with a presence in 100 towns. The major competitor is BSNL and there are no other players,” said GTPL’s Anirudhsinh Jadeja.

GTPL’s Rajan Gupta further added that GTPL had taken a sole position in Gujarat in terms of creating a world class fiber to home network. “Practically nobody else is there so this is quite possible to achieve,” he added.

GTPL reiterated that 25% penetration to home pass was an achievable number with still huge scope of growth. The company has already achieved 25% penetration in many markets where it has done FTTH upgradation.

“I think the current focus is to create the market in Gujarat and other areas where the GTPL enjoys a high market share in cable. So, I think the focus is creating the market. As you rightly mentioned as upgradation happens from LAN to FTTH, there will be some ARPU increase which happened last year and the same momentum will continue,” added GTPL Hathway’s Rajan Gupta.

He further added that GTPL Hathway was seeing a huge amount of consumer traction with Rs 400 to Rs 500 unlimited data plans with speed varying from 50 to 100 Mbps.

I remember during the IPO time this question was being asked to us and even with the 4G, we have seen 20, 30 MBPS speed being given. All of us had those plans. All of us are using mobiles.

But again, if we are giving at Rs. 400 to Rs. 500 pretty much-unlimited data so the speed varies from 50 to 100 MBPS, we have seen a huge amount of consumer traction. So, wherever we have home pass up-gradation or we have done any FTTH, we have seen a very natural demand getting built up. So, I think, the key thing is both the things are complimentary. High-speed wireline will give a lot of speed and once we get hooked to the content, we want to watch at a much which is where the whole broadband spectrum comes in handy.

These are the values that we offer to the Indian consumer. We keep on giving the right value which today we are giving. GTPL has a healthy broadband EBITDA. We can manage this ARPU and still give nearly unlimited data with this kind of speed, so I think we just need to focus on making sure this kind of value equation and our EBITDA equation will pass the new requirements,” added GTPL Hathway’s Rajan Gupta.

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Avatar of Basil Kannagi Arasu
Basil Kannagi Arasu

Editor-in-chief

Basil keeps an eye on the latest happenings in the Telecom sector. In his free time, you can find him streaming the Premier League which he started watching in 2013.

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"It is good now that Jio is also our partner and we might say that we are getting the cost synergy benefits related to the content, infrastructure, or whatever Jio’s expertise is for the overall industry," says GTPL's Anirudhsinh Jadeja.

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