Reliance Jio, the telecom arm of Mukesh Ambani-owned Reliance Industries, is all set for a limited formal launch of its 4G services on 27 December, coinciding with the Group's founder Dhirubhai Ambani's 83rd birth anniversary.
The largest holder of 751MHz spectrum in India, Reliance Jio will be offering free 4G connections and Voice over LTE (VoLTE)-enabled handsets at discounted rates to Reliance Group employees on a trial basis, while the commercial launch is expected later, around April-May next year.
"We are happy to share that we will unveil Jio to our colleagues first, on the eve of our founder chairman's birth anniversary," said the invitation emailed to the group's more than 20,000 employees from Chairman Mukesh Ambani and wife Nita Ambani, reported The Economic Times.
The launch will feature a programme by Shah Rukh Khan and A R Rehman.
But Reliance Jio may be premature in terms of rolling out 4G services even if it is by April next year, if the low subscriber base for 3G services is any indication.
The number of subscribers with 3G connection is at a low 9%, or 93 million, out of a subscriber base of 981 million. The top five circles are Mumbai, Delhi, Kerala, Karnataka and Tamil Nadu, out of 22 circles, said BusinessLine, referring to a CLSA report.
Bharati Airtel and Vodafone have a dominating position in the five circles. These are the subscribers who are predominantly expected to migrate to 4G services.
The adoption of 3G services is likely to pick up, but gradually, according to an analyst at EY. "I don't think the penetration is low as 3G is in the process of evolving," said Prashant Singhal, telecom leader at the consultancy firm.
On the positive side, the higher average revenue per user (ARPU) of 3G subscribers augurs well for Reliance Jio, which is rolling out its 4G services, as these subscribers are likely to adopt it, giving the company an edge over rivals Bharati Airtel and Vodafone. The ARPU of 3G subscribers in the five circles was Rs 225, according to the CLSA report.
Bharti Airtel launched its 4G services in August this year.
The total revenues of telecom service providers stood at Rs 28,819.48 crore for the quarter ending September, 2015, down 2% from Rs 29,914.99 crore in the April to June quarter, according to the Cellular Operators of India (COAI).
Bharti Airtel reported revenues of Rs 10,921.35 crore, followed by Vodafone at Rs 8,185 crore. Idea Cellular grossed Rs 6,857.80 crore.
The ARPU also saw a decline of 3.9%, from Rs 138.03 in the April-June quarter to Rs 132.63 in the September quarter.
