Incumbent telcos to lose edge over Jio as users switch to 4G handsets

Mukesh Ambani Reliance Jio has lower operational costs than its rivals

The revenue advantage incumbent operators have over Reliance Jio for running multi-technology networks comprising 2G, 3G and 4G will go down over time, as handset owners' upgrade to 4G-enabled handsets.

In contrast, Reliance Jio, which is running a 4G only network, has much lower operational costs- a gap that the incumbent telcos, including Bharti Airtel, Vodafone and Idea Cellular need to bridge sooner or later.

According to a report prepared by the Kotal Institutional Equities, Jio's network cost advantage comes from multiple factors. These include the running of a single-technology network, operating on a smart mix of owned and leased