Reliance Jio Lags Peers In Network Coverage And Reliability, Says UBS Research

Reliance Jio Infocomm Ltd. remains behind its peers on network coverage and reliability but is expected to garner higher market share given the switch to a paid service, according to a survey conducted by UBS Research.

The report on the Indian telecom sector said that while Reliance Jio is at par with its peers on data speed, it lags in voice quality. The survey, however, notes that network coverage and reliability are considered to be the top attributes in the consumer's decision to opt for a service provider.

Reliance Jio's entry into an already cluttered telecom space in September last year increased competition in the sector.

The company had in March challenged Bharti Airtel Ltd.'s claim of offering the fastest internet speed as certified by agency Ookla. The Mukesh Ambani-led telecom operator has also moved the regulator against Bharti Airtel for violating tariff rules by issuing misleading offers. This comes after the company and its existing rivals traded allegations over Reliance Jio's free services and tariff plans, besides interconnect points.

Also Read: When Will Reliance Industries Start Recognising Jio's Expenses?

According to UBS estimates, Reliance Jio's market share will be 5.7 percent in the financial year 2017-18, which will gradually increase to 9.8 percent by the financial year 2019-20. The report suggests that Reliance Jio will have a lower revenue share in the next three years. The brokerage firm has lowered its revenue market share estimates for the next three years by 1-2 percentage points.

However, Reliance Jio has a high satisfaction ratio with roughly 64 percent of the customers satisfied with its service, the survey notes. That's higher than most incumbents and almost comparable to Bharti Airtel's.