Mumbai, Jul 5 (PTI) Reliance Jio will offer a Set Top Box for TV when it launches ultra-high speed fibre-based broadband services -- an offering that is expected to compete with DTH operators like Tata Sky.

Market watchers have said this would pose as a "serious competition" to TV distributors on both the DTH and cable side, putting further pressure on falling average revenue per user.

Earlier today while announcing its fibre-based broadband plans, Jio unveiled the 'Jio Giga router', that will power ultra-fast internet connection and offer wall to wall high-speed wifi coverage.

The second device 'Jio GigaTV' set-top box, when connected to large screen TV, will enable subscribers to watch over 600 TV channels, thousands of movies and millions of songs and other content, at any time.

"You can now enjoy all your entertainment content at ultra high definition...This is like having a theatre in your home...," Akash Ambani, Director of Reliance Jio said.

In its latest note, Credit Suisse pointed out that GigaTV is an internet connected set-top box which will allow users access to JioTV, JioCinema and also other features like JioSmartLiving.

"These represents serious competition for TV distributors on both the DTH and cable side and is likely to put further pressures on already falling ARPUs (average revenue per user) once the service is launched. Amongst DTH players, it represents more of threat for Tata Sky which dominates urban markets than Dish TV which is stronger in rural areas," Credit Suisse said in its report today.

Meanwhile shares of broadcasting and cable TV operators tanked up to 15.4 per cent today after Reliance unveiled fibre broadband service in 1,100 cities.

Hathway Cable & Datacom plunged 15.40 per cent, Den Networks 10.73 per cent and Siti Networks 2.76 per cent on BSE. PTI

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