JioGigaFiber Launch Sets Den Network, Hathway Cable’s Stocks Tumbling Upto 18%

JioGigaFiber came as a hard blow to Indian broadband services providing companies as stocks of broadband operators Den Networks and Hathway Cable and Datacom went plunging by upto 18% after JioGigaFiber’s launch announcement on Thursday. Shares of Den Networks Ltd declined to its lowest level since January last year, down 11.4% to an intra-day low of Rs 66.05. Hathway Cable and Datacom shares dipped by 18.5% to a fresh 52-week low of Rs 19.85, the lowest level in nearly seven years.

Reliance Industries stock rose 1.86% to a high of  Rs 1,008.50 on Thursday. Mukesh Ambani announced the official launch of new fiber-based broadband connectivity solutions JioGigaFiber at the 41st Annual General Meeting of Reliance Industrieson Thursday. He said that RIL is currently running beta trials on tens of thousands of homes for the JioGigaFiber. Ambani announced that customers will be able to register their interest starting from August 15, adding that the service will be rolled out on priority at locations with most requests.

“Jio extends fiber connectivity to homes, merchants, small and medium enterprises and large enterprises simultaneously across 1,100 cities to offer the most advanced fiber-based broadband connectivity solutions. The company has named this fiber based broadband service as JioGigafiber,” Mukesh Ambani’s daughter Isha Ambani said during the launch event. The newly launched JioGigaFiber will provide ultra high-definition entertainment on large screen TVs, multi-party video conferencing, voice-activated virtual assistants, virtual reality gaming, digital shopping and immersive experiences for Indian homes.

SP Tulsian termed Mukesh Ambani’s latest launch as “death nail” for D2H companies. “The death nail has come for the second round of the sectors i.e. the cable and direct-to-home companies, like Hathway, DEN Network, and may be for Dish TV as well in longer term, if not now. Ultimately you are giving super house in terms of connectivity and the transmission, where you have all types of facilities available — entertainment, video conferencing, connectivity, etc,” SP Tulsian said in an interview to CNBC TV18. “This is truly capturing benefits that one can derive from the Digital India by complimenting Jio and retail,” he observed. – Financial Express

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