mukesh ambanis $16 billion 4g-disruption set to curb tariffs

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Mukesh Ambani’s $16 billion 4G-disruption set to curb tariffs

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Mukesh Ambanis $16 billion 4G-disruption set to curb tariffsVia Mint | Jun 16, 2015The countdown to one of the boldest rollouts of fourth-generation (4G) wireless technology has begun: by years end, Indias richest man will fire up a broadband network thats set to shake up the nations voice and data industry. Mukesh Ambani said last week his $16 billion Reliance Jio Infocomm Ltd service would begin commercial operations around December. That throws down the gauntlet to top incumbents Bharti Airtel Ltd, Vodafone Group Plc and Idea Cellular Ltd, and risks squeezing others such as sibling Anil Ambanis Reliance Communications Ltd, Tata Teleservices Ltd and Telenor ASA. The disruption is going to come from Jio pushing for faster 4G adoption, said Jimmy Chen, an analyst at Sanford C. Bernstein and Co. in Hong Kong. To encourage that, it will have to make data a lot cheaper. The margins of incumbents are definitely going to come under pressure. While theres a six-month window for Bharti and Vodafone to improve their high-speed products, Standard and Poors said smaller operators may get further marginalized.