Thursday

With Jio DTH Service in Cards, Is Another Consolidation Wave Brewing in the DTH Sector?


Highlights


  • Reliance Jio might drive consolidation in the DTH industry


  • Airtel Digital TV is looking to buy a significant stake in Dish TV thus giving the first sign of consolidation




The Mukesh Ambani led telecom operator Reliance Jio seems to have found its silver lining in the industry because of the areas that it has touched. The telecom has become a winner in the wireless sector and slowly has been planning on taking over the entire telecom business through the way of DTH and landline. Even then, the road is not pretty smooth for Reliance Jio, as similar to the wireless segment, there is substantial competition from the rival companies in the DTH segment as well. Here are some of the details concerning Reliance Jio and its growth and how the DTH industry might be under a massive change in the pre-Reliance Jio times.



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.

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