Reliance Industries has recently announced the details of Jio's upcoming high-speed broadband internet service, Jio Fiber. Click here to know more
Here is a look at the significance and implications of the new plan.
What is the significance?
When it comes to adopting digitisation and online platforms, Indian users are already among the top globally.
Now, Reliance Jio’s (RJio's) Jio Fiber plan could be a game-changer for the industry and consumers alike.
The features offered are trend-setting ones and a compelling proposition for the consumers.
What could the benefits of Jio Fiber be?
The growth in consumption of video and online content has been growing exponentially over the last 2 years.
However, when it comes to network quality, India is well behind global benchmarks.
Until recently, mobile operators adopted a piecemeal approach in establishing a high-speed broadband infrastructure.
The scenario changed in 2016, after RJio launched 4G services at price points that were drastically lower than the prevailing tariffs.
But when one billion Indians get online and start consuming data, then the existing wireless networks will not be enough to support that demand.
In this context, RJio’s move to start offering optical fibre-based broadband service becomes extremely critical for India’s digital dreams.
Optical fibre networks have the capability to carry much more data than a wireless network.
What could the implications be and what is the way out?
RJio’s move will clearly disrupt many sectors, especially the media and entertainment industry, just like it did in the telecom sector.
Post RJio’s entry into telecom, there has been a massive consolidation, with most of the remaining players struggling to survive.
It is crucial that the regulatory authorities step in and ensure that RJio operates on a level-playing field with respect to other companies.
E.g. RJio proposes to offer TV channels bundled with its broadband connection
In that case, Telecom Regulatory Authority of India (TRAI) should make sure that its rules apply to this too.
Because, it should not matter whether the medium of accessing TV channels is via satellite or through the optical fibre.
The regulator should also ensure that RJio honours rules related to Network Neutrality.
It should not misuse its position to influence content that does not reside on its platform.
The Competition Commission of India should also be watchful against the creation of a monopoly, as that could be detrimental to consumers in the long term.
