Starting December 4 every Reliance Jio user will get data, voice, video and a bouquet of other Jio applications fully free up to March 31, 2017, announced Mukesh Ambani, Chairman and Managing Director of Reliance Industries while addressing stakeholders via a live broadcast on Thursday.
The news has hit the telecom stocks hard. In conversation with CNBC-TV18, analysts talk about the impact of this announcement on other big players in the telecom sector.
"This move is not a positive one as uncertainty continues," said Sanjay Kapoor, Former CEO of Bharti Airtel. He added that third and fourth quarter will look subdued on both topline and bottomline of the telcos.
Calling the extension of free services by Jio an unprecedented move, Nitin Soni of Fitch Ratings says that it will be disruptive for the incumbents and will lead to financial burden. However, he said that Bharti Airtel is in the best position to sustain this kind of competition.
According to SP Tulsian of sptulsian.com, Idea Cellular and Reliance Communications are most vulnerable.
Reliance Jio is part of Reliance Industries which also owns Network18 and moneycontrol.com
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