Analysts feel the new fiber broadband service by Reliance is likely to impact cable TV service providers' customer base.
Shares of cable TV service providers Den Networks and Hathway Cable fell 11 percent and 18 percent intraday respectively after Mukesh Ambani, CMD at Reliance Industries' 41st AGM launched JioGigaFiber on Thursday. Siti Networks also lost as much as 5.5 percent.
Analysts feel the new fiber broadband service by Reliance is likely to impact cable TV service providers' customer base.
Ambani said India is still lagging in the fixed band broadband penetration and Reliance is determined to make India one of top 5 in fixed line broadband services.
The oil-retail-to-telecom giant has launched its fiber broadband service under the brand name of 'JioGigaFiber'. "Fiber will redefine 24/7 emergency help for all homes across India and Jio will offer the most competitive broadband connection."
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Reliance Industries has invested Rs 2.5 lakh crore in fiber connectivity.
The Mukesh Ambani-led company also launched Jio Giga Router & Jio GigaTV set top box, saying this will enabled voice command feature on the TV as well. "Jio GigaTV Calling will enable video calling to TV and 'Jio Virtual Reality' headset will enable virtual reality experience."
At 12:27 hours IST, the stock price of Den Networks was trading down by 7.44 percent at Rs 69 and Hathway Cable down 14.78 percent at Rs 20.75. Siti Networks was quoting at Rs 13.12, down Rs 0.63, or 4.58 percent on the BSE.
Idea Cellular was quoting at Rs 55.05, down Rs 0.10, or 0.18 percent and Bharti Airtel was down Rs 4.20, or 1.15 percent at Rs 362.25.