Reliance Jio’s coming entry into the Indian mobile market already is causing various forms of disruption, and commercial service has not yet begun.
Among the bigger effects are expected price reductions by the incumbent carriers, especially for Internet data plans. Airtel, for example, might cut prices 25 percent.
That in a market where costs have been dropping for some time, even if prices have gone higher, in 2015.
The other clear impact is a boost for investment in fourth generation (4G) networks, as that is the platform Reliance Jio will use.
India's Bharti Airtel, for example, may be considering buying 2300-MHz spectrum from Aircel.
According to the Economic Times, Airtel is evaluating using the new spectrum trading regulations to purchase Aircel's 4G spectrum.
Aircel acquired its 4G spectrum in 2010, paying 34.38 billion rupees ($527.3 million) for spectrum in eight of India's telecom circles. According to the report, the deal being negotiated could result in a sale price five percent to seven percent lower than the price Aircel paid in 2010.
Five years after acquiring the spectrum, Aircel has launched 4G services in six circles out of eight, and only for enterprise customers.
That speaks to the rather difficult business model for consumer customers, and the high cost of building a whole new network at a time when even 3G networks are not fully deployed.
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