Airtel has agreed to provide additional point of interconnections (PoI) to Reliance Jio. Airtel announced this after it had bilateral discussions with Reliance Jio, it will provide additional point of interconnections. Airtel had extended an invitation to Reliance Jio to discuss its requirement of additional point of interconnections. Having agreed to release the point of interconnections, Airtel said that it would also need to take cognizance of the massive asymmetry in the volume of traffic between the two networks and ensure that the quality of service for Airtel customers is not affected. Also Read - Airtel Rs 79 plan vs JioPhone Rs 75 prepaid plan compared: Which offers better value?Also Read - Airtel Rs 79 vs Vodafone-Idea (Vi) Rs 79 prepaid plans compared: Data, calls, and other benefits
The statement by Airtel read, Airtel has been providing PoIs to Jio, well ahead of the commencement of its commercial operations. With the latest augmentation, the total number of PoIs will become three times the present number of point of interconnections (PoIs). Based on the current traffic pattern with all other operators, this capacity is sufficient to serve over 15 million customers, which is significantly higher than Jio’s existing customer base. A CLSA analysis has revealed that Reliance Jio and Airtel are best placed in the telecom space. This comes as good news for Airtel to maintain its top position despite Reliance Jio s tempting tariffs and free calls.
A recent S&P Global ratings suggest that even though Airtel s revenue growth in India may halve over the next two fiscals, it still has enough room to weather Mukesh Ambani-led Reliance Jio s disruptive entry into the telecom market. S&P said that the impact of Jio s entry is uncertain, but on a conservative basis, it assumes that revenue growth for its (Airtel) domestic business could decline to below 5 percent during the fiscal year ended March 31, 2018 and fiscal 2019, from about 10 percent in fiscal 2016. S&P also said that its credit rating on Airtel is unaffected by higher competition with the launch of Reliance Jio.