The launch of Jio is likely to transform the Indian telecom sector but at the same time put pressure on multiple fronts on the current telecom operator such as Bharti Airtel, Idea & Vodafone. The entrance of the jio has brought a stormy revolution in the Telecom market and Jio has emerged into a brand new world of innovations and up gradation. This article discusses the features of the jio and the edge it would have over its rivals once operational. The objective of this research paper is to find whether the company will become a Star or will remain a question mark.
The launch of Jiois likelytotransformthe Indiantelecomsectorbutatthe same time putpressure on
multiple frontsonthe currenttelecomoperatorsuchasBharti Airtel,Idea&Vodafone. The entrance of
the jiohas broughta stormy revolutioninthe TelecommarketandJiohasemergedintoabrand new
worldof innovationsand upgradation.Thisarticle discussesthe featuresof the jioandthe edge it
wouldhave overitsrivals once operational. The objectiveof thisresearchpaperistofindwhetherthe
companywill become aStar or will remainaquestionmark.
Review of Literature
Jio is the telecommunication company owned by Reliance Ltd. It emerges one of the fastest growing
telecom operator in India as data published in a review of literature Jai Bhatia Economic & Political
WeeklyOCTOBER 8, 2016 vol lI no 41. Jiocame up witha visiontogenerate huge revenue by providing
quality service at a cheaper rate using the latest technology. Initially, its growth is high. In the Indian
market, it is the first mover advantage for Jio with a biggest 4G network coverage infrastructure all
across 22 telecom circles in India. None of its competitors is having such biggest infrastructure for 4G
As we saw in the year 2012-13, India is 150th in the world in mobile broadband penetration as well as
quality. And Jio has really been conceived to change this position," the Indian billionaire said.
Jai Bhatia, Advait Rao Palepu in their paper Reliance, Predatory pricing or predatory behavior (OCTOBER 8, 2016)
says that Jiocan also be understoodbyPredatoryPricingStrategy to some extent In the beginning, Jio is
alsofollowedthe same strategywhichmade theircompetitorsthinkabouttheir pricing process they all
have tried to reduce and match with the pricing level of Jio price.
Accordingto the data publishedby www.paulasset.com,reliance Jio is good for Indian market because
it is giving best quality on lower price. The data also explains that presently Jio’s data traffic is higher
(TRAI Data) compared to its competitors. Jio is also threatening “As it is expected that it will kill more
than 30 businesses within next 5 to 10 years”, According to poulasset. Jio will acquire and will hold a
major number of market shares in the following areas.
Mobile (Local/STD + SMS), MOBILE DATA (3G/4G), CABLE TV/ D2H, MAGAZINE/NEWSPAPERS, CLOUD
STORAGE, MOVIE DOWNLOAD/ WATCHING, NEWS READING APPS, MOBILE WALLETS / QUICK PAY &
Jiohas alreadystartedgivingsubstitutionforthe above atone place,i.e.JioTV,JioMusic,JioWallet,Jio
According to information published by gadget.ndtv.com It is very difficult to compete with Jio as they
have invested 150,000 Crores rupee during 2010 to 2016 for developing the infrastructure without
having any profit. It is not easy to build such big sector in India in one go because it requires a huge
amount and long period of time. Reliance is always ready to deal with any such startup which can
threatenJio.Existingcompetitorslike Airtel, Vodafone is already suffering from a huge debt so it’s not
easy for them to invest that much huge amount in a short period of time.
Nearly25 millioncellphonesare usingJioSimevenbefore itscommerciallaunch! Reliance Jio is making
headlineswithitseasyonpocketdatapacks and lifetime freecalling.Neverinthe historyof telecomhas
anybody witnessed a player seize the market in a week’s time by distributing Sim cards with the
unlimited free internet.
According to an article published in the myvoice.opindia.com Analysts doubt the strategy of Reliance
by sitingthat with its schemes. Jio will attract low-quality customers who will jump to other networks
once the freebies end. But Reliance doesn’t believe so. It is offering free 4G data which me ans it’ll
occupy the primarySimslotinthe smartphones4Gphones.Also,customerswill switchto Jio from their
broadband or the Wi-Fi services and possibly will stick to it even after the promotion period ends. In
addition to that, it is offering free calling, so it is aware people will be using the number for calling
purposesforthe nextthree months.Three monthsisasufficienttime spanforpeople toexperience the
super-fastspeedandthe qualityservicesandpermanentlytransfertothe network.Now assume thatJio
reaches 75% of its planned subscriber base of 100 million. So by the end of the year, Reliance ends up
with75 millionsubscriberbase.India’stotal 4Gusernumberisbelievedtotouchthe mark of 143 million
by thisyearend.So within 3monthsof itsofficial launch,Jiowouldhave acquiredmore than 50% of the
market share. Even if many subscribers leave the service of Jio, still Reliance would be left with
significant market share.
The analytical data shows that it has captured maximum no. of the market shares within the shortest
period of time. It can also be concluded that the people who are having the Jio service at present,
amongthem 70 to 80 % of the users are happy with its service. This number is higher in the rural areas
and lesser in the urban areas. By the end of 2017, it is expected that there will be 30 to 40 crore
subscribersormore than that.The free appwhichisgiven today will be no longer be free, later on, the
consumer will be spending around 6 to 10 thousand in a year. It will generate huge revenue. "By 2017
end,we wouldcover90% and by 2018, all of Indiawill be coveredbythisdigital infrastructure," Ambani
According to Times Of India (Feb 22, 2016,) As we saw in the year 2012-13, India is 150th in the world
in mobile broadband penetration as well as quality. And Jio has really been conceived to change this
position," the Indian billionaire said.
Usingvariousdata fromthe marketand subscriptionbase figuresasamethodto understand market
dominance,R.Jiocannotbe specifiedasadominantoperatorbutit can be specifiedasthe initially
fastestgrowingTelecomoperator.The datashowsthatithas capturedmaximumno.of the market
shareswithinthe shortestperiodof time.
The people who are having the Jio service at present, among them 70 to 80 % of the users are happy
with its service. This number is higher in the rural areas and lesser in the urban areas.
Basedon the BCG Matrix, we can say that Jioisa questionmarkforthe reliance Ltd.The data showsthat
they are pumping the huge amount of money and at present, it is not giving a bit of profit to them at
present.Itisexpectedinthe future thatThe Jiowill end up generating a huge amount of revenue from
the consumers depends on upon the policy and steps will be taken by the Jio officials.
Thisis the onlycompanywhichisholding4G infrastructure inall 22 telecomcircle,Bythe end of 2017, it
isexpected that there will be 30 to 40 crore subscribers or more than that. The free app which is given
today will be no longer be free, later on, the consumer will be spending around 6 to 10 thousand in a
year. It will generate huge revenue.
Many others source like
The Hindu, Economic Times, Times of India, By interviewing some friend who are living in the
rural and urban areas, Personal Experience, Various other webpages and sources.
Anand, N (2016): “Aircel Bets Big on Data Plans for Growth,” 28 June, Hindu, http://www.thehindu.
com/business/Industry/aircel-bets-b ig-ondata- plans-for-growth/articl e 878 4 551.ece.
TRAI (2016a): “Consultation Paper on Review of Interconnection Usage Charges,” Consultation Paper
No 17/2016, Telecom Regulatory Authority of India, New Delhi
Hindu (2016): “With 220 mn Users,India Is Now World’s Second-biggest Smartphone Market,” 3
February, http://www.thehindu.com/news/c it i es/mumbai/business/with-2 2 0 mn-users-in dia- is-now-
worlds-seco n dbiggest-smartphonemarket/article8186543.ece.