Reliance is touted to be the fastest growing telecom network in the world, and the credit goes to its introductory free offer. Now, a new report from Credit Suisse claims that while Reliance Jio enjoys the most amount of network coverage, but its 4G speed trails behind its competitor Airtel. The report is based on study in over 30 cities in India., which represent a “significant chunk of current data demand and revenues.”
Reliance Jio vs Airtel
According to the report, Airtel 4G has the best 4G speed in India. The download speed of Airtel is at 12Mbps, while Reliance Jio, Vodafone and Idea has a download speed of 7-8Mbps.
“Our conclusion is that Reliance Jio’s network coverage is significantly ahead of the other operators. Reliance Jio has good coverage in 80 percent plus of cities surveyed, compared to less than 30 percent for the others. The difference is even more stark when compared only with 4G networks of incumbents (sub-15 percent of cities),” the report said.
The slow speeds on Reliance Jio was probably due its load on its servers. Reliance Jio provides more than 90 percent of the country’s data traffic, while its network capacity share is closer to 35 percent only.
“We have already started seeing the impact of Jio on the incumbents’ numbers (Bharti 3Q). Our study here shows Jio has built a significant lead in terms of network coverage, and the incumbents have a fair amount of catch up to do (especially on 4G). Importantly, going by recently announced enhanced capex plans, the company continues to invest. Overall, we continue to see significant pressure on fundamentals in coming quarters from Jio,” it said.