Reliance Jio was launched recently in Indian markets and it shook the telecom industry by offering services at lucrative services. Reliance promised to provide services free till 31st March 2017 and it did provide free internet and free calls to the users. At the same time, Reliance also offered economical 4G from 1st April 2017. As per the offer, the voice calls are going to stay free.
In India, amajor source of revenue for the telecom companies was the voice calls and internet packs but reliance JIO changed the game by offering free calls. Most of the companies are now struggling to retain customers and in answer, they also reduced their tariff plans. Vodafone also recently came up with unlimited voice calling plan which is bundled with 3GB of data.
Here are some amazing facts about Reliance Jio
#1. We will start with the launch of JIO, when JIO was launched, it totally shocked the market and it attracted a lot of criticism from market players. Vodafone was planning for an IPO (Initial Public Offering) in 2016 before JIO was launched, this is because Vodafone wanted to go public and it needed funds to grew but as the JIO was launched, Vodafone cancelled all the plans to launch its IPO and it cancelled the listing till further notice. In the stock market, three major telecom service providers, Reliance Communication, Airtel and Idea Cellular lost 13165 Crore in their market capitalization. This is because of the fall in share price after the announcement. Airtel suffered the maximum loss of 8454 Crore in its market capitalization value.
#2. It is not a secret that Reliance Group made a major investment in laying optical fibres across the country. The network of the optical fibre is believed to be 2.5 Lakh Kilometres long and the network is spread throughout the country. The optical fibres are the backbone of Jio’s Because of such an infrastructure, reliance will also be able to provide broadband in form of FTTH (Fibre to Home) to its customer and the speed will be much higher than the conventional broadband. The speed is speculated to be 1Gbps
#3. The Reliance JIO doesn’t offer 2G or 3G services. The company only made the investment to offer 4G services and it is kept in mind that upgrading to 5G or later technologies would not cost a bomb to JIO. This also Helps Company is reducing the expense as they can only focus on one service. As per an estimate, reliance invested Rs 15000 crores in setting up the network.
#4. Reliance JIO is also the first company to implement e-KYC. Which meant that the customer didn’t have to wait for long before his SIM was activated. Reliance also used biometric verification to ensure the security of the network and its customer. Such type of authentication will also help in strengthening national security.
#5. The initial plan was to launch JIO in 2015 but because of operational delays, the launch was kicked to 2016. It is known that JIO was under testing phase since 2015 which helped Jio in troubleshooting all the problems and at the same time, it also helped JIO in meeting all the demand and operation requirements without any problem.
#6. Reliance JIO is also coming up with 4G handsets which are said to be much cheaper than the Chinese phones available in Indian Market. This is going to trigger digitalization in India as everyone will have access to phone and the internet at much cheaper price. Jio may also help in delivering good governance as more people would be able to connect to the government with help of the smartphone which will eventually bring in more transparency. The phones are said to be priced at Rs 4000 only.
#7. As already mentioned, Reliance has made huge investments in the country and it can be said that Reliance is planning to do business for a long period as the payback period of the investment can be quite high. In relative terms, it can be said that the investment made by reliance Jio is more than the investment that other telecom companies made in last 20 years of their journey in India. Reliance is surely Indian by heart and Reliance was also the company which made phones affordable in the beginning of the era and today, reliance is making the internet affordable to everyone.
#8. Another amazing fact about reliance is that at present, it is believed that Reliance has a total number of 100 Million users and it adds almost 5 lakhs of the new user every day. It also sold almost 7 Million phones which it markets. But as per some of the experts, it is believed that reliance will lose 50% of its active users after 31st march 2017.
#9. Reliance had been in major controversy with other telecom providers regarding call drops and tariff plans but the courts in the country and TRAI always made decisions that were favourable to Jio. Jio believes that the profits will come from a high user base as they will be able to take advantage of economies of scale.
#10. At present, reliance Jio has a market share of 24% of a total number of broadband users in India. It is said to have grown at a very fast rate and it established itself easily because of the strong financial support offered by reliance. It will surely be nice to see such a people friendly company grow.