Launch of consecutive free data services followed by availability of Mi-Fi- data cards at different prices along with aided the consistent growth of Reliance Jio with 91% during the same time period. The other vendors’ market shares are stagnant by 3% from the last two quarters. The units shipped of Alcatel witnessed the fastest growth by 522% in 2Q CY2017, whereas ZTE and D-Link shipments registered decline of 21% in case of former and 82% in case of latter respectively. Among Reliance Jio offered MiFi devices, M2S continued to be country’s fastest selling model. JMR1140 stood second while JioFi ranked third.

Mi-Fi’s primarily driven by Jio are gaining acceptance in Tier II and Tier III cities and towns that could result in erosion of potential broadband base for operators like BSNL.  In such towns and cities, users benchmark broadband speed and quality with that of  BSNL fixed line broadband, which in majority of the circles for popular plans is 2 MBPS for residential users. Mi-Fi could also slow the pace of 3G to 4G Smartphone replacement as the market looks for replacement opportunity in smaller towns and cities.

“RJio’s MiFi devices (JioFi) also impact home router market. Our initial statistics from the channels suggest a decline of 60%-70% sales in major cities.  Now it has started affecting the SOHO / SMB router market in other cities and towns as well. To counter competition is attempting to level the equation by offering matching plans, etc. However, I expect Mi-Fi’s to continue cannabalising the entry level router market for few more quarters from now,” said Narinder Kumar, Analyst, Industry Intelligence Practice, CMR.