Why Reliance Jio is the second name for digital revolution

Reliance Jio AKA Reliance Jio info-comm Ltd is the result of Business tycoon Mr. Mukesh Dhirubhai Ambani's genius strategy is proving its steel everywhere in the Telecom Industry & abroad as well.
It was Mukesh Ambani's dream to make India digital by innovating a revolution in the Data industry & with this vision in his mind, he stepped into 4G technology.


Now we'll understand what went behind the making of Reliance Jio, how much effort & investment has been input, the Monopoly which Reliance Jio created & much more.



Let's Go...

Post the Death of Mr. Dhirubhai Ambani the Founder of Reliance Industries both Ambani brothers got separated & business was divided with Elder brother Mukesh Ambani getting Reliance Industries Limited & Anil Ambani getting Telecom, financial services & energy sector. In 2010 Mukesh Ambani got Non competing clause scrapped against each other which led him to also take charge of telecom & financial services that Anil Ambani owned & vice-versa. 

So thereby in June 2010 itself, Reliance Industries Limited bought 96% shares in Infotel Broadband Services Limited (IBSL) worth Rs 4800 crores. IBSL was an unlisted company but won broadband spectrum in all 22 circles in India in the 4G auction. Later in 2013, RIL renamed IBSL as Reliance Jio Infocomm Ltd.

Business Tycoon Mukesh Ambani has invested Rs 1.5 lakh crore in Reliance Jio making it the biggest investment ever by an Indian business tycoon in the Telecom industry which is equivalent to 3X of the total investment by their business rivals like Vodafone, Idea & Airtel summed up. 

Earlier on Airtel, Idea & Vodafone were dominating the Telecom industry by earning 60-70% revenue through voice call charges via customers until & unless Reliance Jio stepped in & disrupted the whole market by bringing Voice Over Long Term Evolution (VOLTE) into the telecom industry with 4G spectrum all across India. The main idea was that the Voice call industry had totally saturated by then & onwards, so the biggest headroom was in the Data industry which nobody thought of at that moment but Mr. Mukesh Ambani landed the checkmate. 

The Bay of Bengal gateway has been embedded with submarine cables stretching up to 8100 km providing Direct connectivity with Southeast Asia, Srilanka, Singapore, Europe, Africa & Middle East. The Bay of Bengal hosts a Fiber optics cable technology with a net speed of 9 Terra bytes per second and will deliver 100 GBPS transmission over Reliance Jio 100 GBPS core network. As a result, Jio users get a lightning-fast Internet speed with 5 Mbps being the average downloading speed on the Handsets.

As Reliance Jio stepped into the 4G spectrum with a bang by giving free outgoing calls, free Data, Free SMS & everything, it has made a huge pain for its competitors to compete in the long run. The ordeal is that the Entry barrier got very strong in the Data Industry as competitors like Vodafone, Idea & Airtel who had already invested huge capital in older technologies like 2G & 3G cannot shift themselves fully into 4G data technology with ease because of following reasons :

• High Cost of Capital Input

• Expensive Technology

• Strict Govt Rules & Regulations

As far as the entry barrier is concerned Reliance Jio has made it very strong by adopting a loss-leading strategy, whereby it is offering its goods & services to the consumers at a cost that is even much lower than their expected cost in the market, thereby incurring loss to self & facilitating cheaper goods & services to the customers to encourage them to buy more. As a result, many consumers have switched to Jio usage thereby dipping the market shares of its competitors respectively.

According to TRAI reports, Reliance Jio has surpassed its toughest rival in terms of Bharti Airtel in terms of AGR in the June quarter ending 2018 with Jio's Annual growth rate being Rs 7128 crores having a hike of nearly 14.6% on quarter & Airtel having Rs 6723 crores having a dip of 5.1 %.

So, that's how a monopoly is created with a very strong presence. This is also known as Market penetration strategy where the sole purpose of any business entity is to dive deep into the market & destroy all competitors all at once & forever.

In the modern world, there is an urgent need for high-speed internet which Mukesh Ambani already analyzed, just this idea made his action a revolutionary step in the Digital world.

According to sources after the entrance of 4G networks of Reliance Jio, the data consumption in India has increased exponentially as India was before standing at 150th position globally & finally has now become the world No.1

On the inception of Reliance Jio in 2015, they came up with the following schemes because of which it was able to capture the majority of the market :

1. From September 2016 onwards Reliance Jio started distributing the Jio sim card with free data for 3 months for absolutely free to all consumers across India. On a single Aadhar card, people can buy 8 SIM cards. This happened because of the reason that there used to be very few 4G but more 3G mobiles which were incompatible with Volte accessibility then. As a result, people started buying 4G-enabled phones to enjoy using the free 4G data services.

2. Jio came up with an extensive package of up to 3 months of free usage which was announced by Mukesh Ambani at the annual general meeting in Dec 2016. It was termed Reliance Jio's New Year plan which extended the package up to 3 months further i.e. up to March 2017. 

3. While at the time of inception, the Jio sim used to take almost 24 hrs to even 48 hrs to get the sim activated but the activation time has now been reduced to just 15 minutes only which is a great effort.

As a result, Reliance, Jio was able to capture the majority of the market due to its attractive offers & is still capturing millions more because of continuous improvement in their packages & advancement in technologies.

1. Lyf smartphones:- In June 2015, Jio stepped into a contract with Domestic handsets maker Intex to deliver 4G handsets capable of VOLTE. Then on 21st Jan 2016, the company launched its LYF smartphones with Water 1 via its chain of electronic retail outlets "Reliance Digital" along with 3 more handsets released to date which are Water 2, earth 1 & flame 1.

2. Jionet WiFi:- Before the launch of 4G data, Jio started providing free WiFi hotspot services all across India including Surat, Indore, Ujjain, Mumbai, Kolkata, Delhi, Lucknow & many other states too. In 2016 Jio commenced providing free WiFi internet services to spectators in cricket stadiums such as Wankhede Stadium, Himachal Pradesh Stadium, Chinnaswamy Stadium, Feroz Shah Kotla Stadium & Eden Gardens.

3. Jio Giga Fiber:-  Jio launched Giga Fiber on 15th Aug 2018 offering High-speed broadband services, landline & DTH services at very reasonable prices.

On & all Jio has been a complete masterpiece in the telecom industry with a strong presence in the minds of consumers. Having said that there are still limitations with the voice calling of Reliance Jio as there still are issues with & Network connectivity in remote areas or villages communication discrepancies are happening which need to be fixed. It is also a surprising fact that competitors like Airtel, Vodafone & idea are banning Jio calls because of which call drops happen frequently. Adding further, Airtel along with Vodafone as well as an idea is planning to bring up attractive Call & data packages at many affordable rates for cut-throat competition. The question which arises is how will Reliance Jio be able to keep up its pace along with intelligence to continuously provide more attractive offers & a variety of other innovative services.