After the launch of Jio GigaFiber on August 15, Reliance Jio is working hard on its last-mile connections before pan India launch. The company is yet to unveil its services as promised in 1,100 cities across the country.
But, before it could make a mark in the broadband industry, the company has started taking up majority stocks in other broadband companies.
Reliance Jio Infocomm Ltd has made priority investments in Hathway Cable & Datacom Ltd and Den Networks Ltd. This makes Reliance Jio is the front seat and a potential leader in the broadband industry without even an official roll out.
The investment in both the companies seem very strategic, and here six things you need to know about the two deals:
Contents
Headstart To Broadband Innings
Reliance Jio is stuck and still working on its last mile connections. The investments in Hathway and Den will help Jio to kick-start its broadband service across the country. Both Hathway and Den has a massive availability and Jio will leverage it to launch its own services.
Majority Stakes & Decision Making
Reliance Jio has acquired 66 percent stake in Den and a 51.3 percent in Hathway. This makes Jio a decision maker of both the firms. So, now Reliance Jio can use it to their advantage to use the coverage for its own high-speed home broadband service, Jio GigaFiber.
Using The Hathaway & Den Coverage
The investments in Den and Hathway puts Reliance Jio in the driver seat. The company will now use the local cable operator (LCO) network used by Hathway and Den to offer their services. Hathway and Den broadband hold as many as 27,000 LCOs across the country.
Jio GigaFiber Will Reach 24 Million Homes
The 27,000 LCOs will help Jio GigaFiber finish its last mile connectivity with ease. The deals will help Jio to get access to 24 million homes across the country. Currently Hathway and Den offer broadband services in 750 cities in India, where Jio GigaFiber will soon reach.
Existing Fiber Network & Users
Reliance Jio will initially use the existing fibre network of Hathway and Den. That means the existing user base will get an easy upgrade to Jio GigaFiber and its added services. The partnership will help Hathway and Den easily upgrade to Jio GigaFiber.
Jio DTH Services
After broadband, Reliance Jio is working on its Jio DTH services. The company will already offer Jio Giga TV services with Jio GigaFiber, a stepping stone to Jio DTH. The company will offer Ultra HD television services, a part of Jio GigaFiber. This will help the company to roll out its direct-to-home (DTH) services soon with the infrastructure ready.
Hathway and Den, major competitors to Jio GigaFiber till a few days back, has now been acquired by Reliance Jio.
Now, it will be interesting to observe how this new market dynamics impact the cable industry market in India.
We will keep you updated, as more details come in.