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Jio broadband plans may leave DTH firms vulnerable

Jio broadband plans may leave DTH firms vulnerable

TIL Desk/Business/Mumbai/ Reliance Jio’s bundled broadband services plans may leave DTH firms “most vulnerable”, and work out to be “neutral to slight negative” for Bharti Airtel, as it raises competitive heat in corporate and home internet space, a Bank of America Merrill Lynch report said on Tuesday.

The view comes after Reliance Industries on Monday revealed its plans for fixed line broadband services ‘Jio Fiber’ that will offer optical fibre-based ultra high-speed internet bundled with HD television viewing at less than one-tenth of global rates. Bank of America Merrill Lynch said that direct-to-home (DTH) companies could be “most vulnerable” to Reliance Industries’ bundled broadband and cable services as they are unlikely to offer dual services.

 It did not anticipate a direct impact on broadcasters but said that indirect impact on subscription revenue could be felt if DTH/MSOs (multiple-system operator) revenue are affected. “Long-term impact would be on ad spends if advertisers focus more on advertising on Over The Top (OTT) and spend more on producing quality content to compete with Amazon, Netflix etc,” it said.

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