The cost and marketing strategy used by Reliance Jio to capture the market and to mend more and more profit from there.

1. Anoop Kr. Gupta
Roll No. 17

2. INTRO :-

3. What Reliance Strategy behind this ?
• Mukesh Ambani finally acknowledges th universal truth
globally consumer pay either call and text or data they don’t
pay for both.
• This universal truth helps to establish a new industry norm in
Reliance’s Jio Pricing Policies as they are going to charge
1/10th of the standard telecommunication charges.

4. How the company will make a profit when
their rates are so low ?
Let’s start with 2 basic facts of Indian Telecom market before JIO
entered it.
• 1. There were more than 1 billion mobile users in India, out of
which only 34% were connected to the internet.
• 2. Only 12 percent from these 1 billion used 3G data or above
Now spend a minute or two analyzing the above two facts and you will
know the next big movement in the telecom industry is…
“Internet data and not voice”

5. The Biggest difference is JIO’s Optical Fibre
Network. An optical Fibre is a wire that converts
your data signal into light and transfers them at
the speed of light. You know how fast is light.
Reliance JIO has the longest fibre optic network
in the country, ranging over 2,50,000 Kilometers
and 90,000 eco-friendly 4G Towers to provide
unmatchable 4G Coverage in all of India’s 22
telecom circles. Having that kind of fibre optic
network is not a Joke, it requires a lot of money.
JIO vs Other’s

6. Cost Strategy
• Acquiring IBSL in 2010 (they get all 22 circles spectrum of 4G )
• Integration of Latest Technology LTE
• In order to acquire subscriber Free distribution of connection with data
• Attractive Schemes
(Welcome Offer,Monsoon Hungama, Dhan Dhana Dhan)
• Recover Investment using large no. of subscriber
Fact: Before the commercial launch of JIO, less than 15 percent of India had
access to 4G connectivity, a figure the teleco wishes to push to a whopping
90 percent by the end of 2017.

7. 510 cr
612 cr
Net profit shoots up by 20 % (approx. ) in Q2 result as compared to Q1 result.