The ppt is about the Telecomm Market's Strong players Jio and Airtel. History of how they thrived to be the best and how telecomm market withstood the competition with giant's arrival

2. JIO
 Mission – Take Digital Experience to
Remote Areas of India
 Target – To reach 100 million subscribers
as against current 150 million subscribers
 Not just another player in the market but
with clear vision and solid targets
 Ambani says “Data is the new oil”;
Reliance Industries mainstay is the
petrochemical business ; Data is what he
bets on.

3. BUILT ENTRY BARRIERS
 Country’s top billionaire industrialist did
6 years of rigorous preparation touching
every nook and corner of the country
 Made investment of Rs. 1.5 trillion with
free voice and data
 Reliance bought a company Pan-India
4G airwaves in 2010.He made
investments to tower FIBRE technology
in last couple of years

4. ARRIVIAL OF JIO
 The industry have been disrupted and the entry of
the game changer has put pressure on existing
players in the market
 Enticing customers with freebies, understands Indian
customers are very price sensitive
 Consolidation - Smaller Players have exited the
market and some have merged to compete with the
deep pockets or be the market leader
 Existing Players want to retain their customers and
increase Average Returns Per User
 Airtel and others in the market might benefit because
of Jio, as after their welcome offer of free trial period,
customers might be back to their loyalties.

5. Complementing
 The data speed and apps, make it the
perfect platform for Modi’s Digital India
Programme
 As the use of internet increases and
spreads to remote areas, even others are
benefited. For ex. Apps like Facebook
grows in India.
 Cash flows through partnership with other
companies like Uber
 By their increasing subscribers and
success and name the investors and
demand on share increase.

6. Channels of Revenue
 Jio is advanced – all in one – app family
To access services online <Payment, Money,
Messaging, News, Shopping, Ride>
 Jio hasn’t started earning its profits yet as it is
yet giving free services. It has Profit from
subscriptions, regular tariff charges
 Lyf Phones – very low prices – customers
have cheaper option to reap benefits of plans
by Jio
 Increase in sales of handsets – monitor
customer preference – roll out other offers –
create stickiness to customer loyalty

7. AIRTEL
 Mission – Hunger to win customers for life
 Vision – To enrich lives of customers, obsession is to
win customers for life through an exceptional
experience
 Tagline – The Smartphone Network
 Setup new towers – Fastest network and market
leader
 Reached the public, increased users in the market
with ads and promotions
 Known for Innovations – cont. tech upgradation,
value added services, highest standard of customer
care, Lifetime Prepaid, Hello Tunes, My Plans,etc
 Satisfied customers

8.  Faces strong competition from rivals
aiming to be market leaders
 Only telecom to deleverage itself in next
2 years
 Got the pinch with Jio s Unlimited free
voice calling
 Experts advise investors to consider
Airtel stock as a long term investment
oppurtunity
 Merge with Telenor

9. Rising tensions
 Airtel claims itself to be Officially the
Fastest Network by Ookla s Testings.
 But Jio says, Ookla gives such awards
on money and the word officially is
misleading to the public as if it from
govt. like DoT or Trai
 Jio says due to lack of interconnect
points – calldrops
 Airtel blames Jio for calldrops as due to
underpreparedness

10. Market
 Oligopoly market
 Few sellers
 Interdependency

11. Market
 India - Fastest growing mobile market in
the world
 Airtel’s net profit fall by 55% because of
price war started by Jio
 Loss of Airtel’s 7.7 million data users in
3 months of Jio s entry
 R-Jio added more than 51 million in 3
months, 72 m in 4 months of entry –
world record!

12. 2012 market share

13. 2016 subscriber base in market

15. The subscriber additions in market
has seen decrease in last months

17.  The already data users have become jio
users
 Reduction in the rise of subscriptions
 Airtel cut 80% price to check The Jio
Effect
 The debt burden
Airtel -10k crore debt
Jio - 49k crore debt
Idea - 2k crore debt
Vodafone – 47k crore debt
 Risk of default in payments

18. Sources of Data
 Business Today
 Business India
 Economic Times
 India Today - Business