JioAirFiber could unlock a US$7-10bn revenue opportunity as it could spur broadband adoption among 85 million Pay-TV homes that don’t have internet access today, according to a report by brokerage firm Jefferies
“We see Jio as well positioned to scale its fixed wireless access (FWA) offering to 35 million homes by Mar-26 given its hefty network investments, which enables it to offer dedicated speeds,” Jefferies said in a note.
JioAirFiber, was launched last week in 8 key cities in India. Jio has positioned JioAirfiber as a home entertainment solution given that it has bundled content from 550+ TV channels and 14+ OTT apps across all its plans with no plans with just an internet connectivity option.
JioAirfiber offers speeds ranging between 30-1000Mbps, in line with its FTTH service. “Jio’s standalone (SA) 5G network enables a more effective network slicing which will help Jio offer dedicated speeds to its FWA customers. Our checks suggest that Jio has enough capacity to serve 400 million 5G mobile subscribers and 20 million FWA homes. Its recent acquisition of Mimosa Networks will also allow the use of unlicensed band radio for augmenting its FWA capacity,” the brokerage firm said.
India has 35 million broadband households, 120 million pay-TV households vs total households at 319 million. “We believe, JioAirFiber (FWA) can spur broadband adoption among 85 million households that pay for TV but don’t have a broadband connection. We estimate FWA’s direct addressable market could range between $7-10 billon assuming 100 million subscribers at ₹500-700 monthly ARPU’