The revenue advantage older telcos have over Reliance Jio for running multi-technology networks — 2G, 3G, 4G — will go down over time as firms upgrade to 4G handsets.
Jio offers a 4G-only network and has a much lower operational cost than Airtel, Vodafone and Idea Cellular. A report from Kotak Institutional Equities says Jio’s network cost advantage comes from a mix of factors such as single-technology network, a smart mix of owned and leased towers, and lower-than-market tower rental deals on a good proportion of sites.
These factors “yield a network opex (operational expenditure) advantage for Jio
Jio offers a 4G-only network and has a much lower operational cost than Airtel, Vodafone and Idea Cellular. A report from Kotak Institutional Equities says Jio’s network cost advantage comes from a mix of factors such as single-technology network, a smart mix of owned and leased towers, and lower-than-market tower rental deals on a good proportion of sites.
These factors “yield a network opex (operational expenditure) advantage for Jio