With a rapidly expanding digital footprint, our wireless networks are likely to prove inadequate to handle the load.
“Optical Fibre Technology” is a promising prospect and Reliance Jio’s proposed foray into the sector is likely to disrupt the market.
What is present scenario in India’s digital landscape?
Change - The growth in consumption of video and online content has been exponential over the last two years.
The tectonic shift from an analogue world to a digital future is clearly perceptible across all aspects of life.
At the centre of this transition, is the availability of a reliable and affordable data network, which was previously eluding the Indian masses.
Trigger - Until recently mobile operators were adopting a piecemeal approach in establishing a high speed broadband infrastructure.
The scenario changed in 2016 after Reliance Jio launched its 4G services at price points that were drastically lower than the prevailing tariffs.
Since then data consumption has shot through the roof to 1,945 MB per user per month in 2017 from just 123 MB in 2015.
Challenges - However, with only 400 million users having access to broadband, we are still scratching the surface when it comes to data usage.
When one billion-plus Indians get online and start consuming data, the existing wireless networks will not be enough to support that demand.
In this context, Reliance Jio’s move to start optical fibre-based broadband service is a disruptive move which is critical for India’s digital dream.
What is the significance of Jio’s Optical Fibre Foray?
Optical Fibre Network - These are wired connections established for ushering in broadband services at high speeds.
It has the capability to carry much more data than a wireless network because the latter is dependent on the quantum of radio spectrum.
Spectrum being a finite resource can only be useful for carrying applications that do not require large bandwidth.
Mission critical applications such as healthcare and education can proliferate only when there is a robust optical fibre broadband backbone.
Reliance’s Venture - Jio’s move into optional fibre network is a game changer as it is likely to position India as one of the biggest digital market.
This will further disrupt consumer behaviour as it would open broad bandwidth services to areas that have not been serviced till now.
Notably, large incumbent optic fibre operators, despite being in operation for over two decades, have network only across 100 cities.
On the contrast, Reliance’s blueprint of 1,100 cities and hopefully, at radically lower price points promises to be massive in coverage.
Implications - All this augurs well for users, but the ensuing cut-throat competition will force existing players to alter their business model or exit.
Jio’s cheaply priced mobile internet has already caused considerable damage to the wireless technology based telcos, most of which are now in huge debt.
Now, its foray into fibre optics transmission is likely to worsen this further.
What is the way ahead?
Selling wireless bandwidth seems over and telecom market is shifting towards building and monetising services on top of the broadband network.
Further, linear TV faces the risk of losing viewership as audience are likely to shift towards online streaming platforms for entertainment.
In due course, this is likely to make cable TV and DTH players irrelevant – and incumbent players have to get innovative to survive these disruptions.
