And Then There Were 3: Jio Will Prompt A Race to the Bottom

Fitch Ratings expects Reliance Jio’s discounted services to trigger a price war, prompting a race to the bottom.

Bharti Airtel lost approximately Rs 9,800 crore and Idea lost roughly Rs 2,450 crore of market cap. (Photo: The Quint)

Fitch Ratings has a negative outlook on the Indian telecom sector, as it expects Reliance Jio’s discounted services will trigger a price war, prompting a race to the bottom. This will impact revenue and profitability and will create considerable churn among consumers, away from incumbent telecom service providers, and towards Jio.

In this interview with BloombergQuint, Nitin Soni, director, Fitch Ratings talks about the impact of Jio’s launch (September 5), consolidation in the telecom market, the impact on profitability and the survivors.

(Read the full story on BloombergQuint)