Credit Suisse analysts were “impressed” by Reliance Jio Infocomm’s fourth generation (4G) services, which are on a trial run for limited people in Mumbai.
“We experienced peak download speed of 70 megabit per second during our trials, and on most occasions in the 15-30 mbps range, even on the move,” Sunil Tirumalai and Chunky Shah of Credit Suisse said.
At the peak speed of 70 mbps, a Bollywood movie can be downloaded in about half a minute, while at 15-30 mbps the same can be downloaded in about three minutes.
The download speeds may fall as more users get on to Reliance Jio’s network, but globally 4G has delivered better speed than 3G services, analysts noted.
Reliance Jio’s download speed was faster as compared to commercially launched 4G service of telecom major Bharti Airtel, Credit Suisse added.
“Airtel 4G giving 10-20 mbps, often slower than Jio, and 3G network speeds of sub 2 mbps (peak 7 mbps),” the brokerage said.
Reliance Jio matched up with incumbents as far as coverage in urban areas is concerned, but coverage in rural areas was “poor”, analysts noted.
“Until the rural network is fixed, Reliance Jio could enter into roaming agreements with other operators. We suspect Jio would use sub-1GHz spectrum for rural coverage,” said Credit Suisse.
Credit Suisse analysts experienced seamless phone call experience between Reliance Jio and other telecom operators.
“Overall, our take away is that the Reliance Jio network is turning out to be as strong a threat to incumbents as we had feared. Next focus would be on pricing and marketing execution,” the brokerage said.
Mukesh Ambani-controlled Reliance Jio may start limited services later this month, though a full commercial launch is likely to happen in 2016-17, analysts say.
Reliance Industries, which has so far invested around Rs 95,000 crore in rolling out India’s biggest 4G broadband network, is expected to emerge as a “disruptor” in the highly competitive domestic market, analysts say.
Other carriers are scrambling to fine-tune their strategies ahead of the launch of Reliance Jio’s services. Last month, Bharti Airtel – India’s biggest telecommunications carrier – said it will invest Rs 60,000 crore over three years to upgrade its network.
Earlier, Idea Cellular – India’s third-biggest mobile phone operator – announced a deal to buy airwaves in two services areas from rival Videocon Telecommunications for Rs 3,310 crore.
Source : NDTV