Competition may move from wireless to broadband with Jio's 2019 entry: CLSA

Reliance may use an aggressive customer pull strategy even in the broadband services space, as it did with the mobile business

Billionaire Mukesh Ambani’s plan to roll out broadband internet services to Indian households this year under Reliance Jio Infocomm Ltd. has the potential to alter the segment’s competitive landscape, credit rating company S&P Global Ratings says.

The new service may add $5 billion to parent company Reliance Industries’ valuation, according to CLSA India. The brokerage firm anticipates a 40-billion rupee ($611 million) boost to Reliance’s earnings before interest, taxes, depreciation and amortization in three years on the back of the plan.

“In the past, fiber-to-home was not the primary focus for telecom players in India as they were pursuing growth