INTRODUCTION

Mobile economy in India is increasing very fast and will add

significantly to India’s GDP. Indian telecommunication market is
a excellent opportunity for network providers from native and
exogenous Players. Both Indian network providers’
international providers receive considerable market share in
the Indian mobile industry. Recently Reliance Jio has gave a big
jolt to Indian telecom industry, schemes like free internet, free
calling, 4g network provide a serious threat to others. Reliance
Jio emerge a new choice and other service providers face a new
kind of challenge and find difficult to cope up with new
circumstances. This research paper discusses the features of
the jio and also through some light on the competitive edge
over other service providers.
JIO NAME MYTH
Jio is Hindi word which means “Live Long”.
Mr. Dhirubhai Ambani used to bless younger with the blessing
word JIO which means Live your Live Long and the way you
want with accomplishing goals of life.
Jio then becomes the name for the cheapest or Free Telecom
service provided by Reliance. Jio name is indeed meaningful in
it's way.
JIO PLACE IN MARKET
Throughout the world telecom sector is one of the prevalent
sectors. Study stats that India would be a speedily escalating
hub for internet users, with market expected to be $9 billion by
2020 (Deloitte, 2017). Indian telecom sector is becoming
backbone for fast growing Indian economic of this decade. Jio
came up in Indian telecom sector with a idea to make huge
revenue by providing quality service at a very cheaper rate. It
came with advantage of first biggest 4G network coverage
across all 22 telecom circles in India (Jai Bhatia, 2016) According
to Paulasset, 2016 reliance jio is working according to Indian
market; it gives best quality services at much less price.
Reliance Jio also giving challenge to more than 30 businesses
because it also enters in other service sector related to telecom
sector
Reliance Jio entry
Post the entry of Reliance Jio in to the mobile market, Jio has
been focusing on gaining quick subscribers. They have already
made discounted plans (which have disrupted the industry by
making calling free) and easy access to SIMs by linking in to
solely Aadhaar. It has been quick to gain subscribers reaching
quickly 50M by end of 2016 and expected to double this by the
end of Q1 2017. Though the subscribers that Reliance Jio has
gained initially are the low ARPU (average revenue per user)
customers and most of the customers are skewed to the low
interest prepaid users, it has made quite a name for itself in the
country. Though complaints persist in terms of service quality
and internet speeds, Jio seems to be quickly fixing these issues
and running towards the 100M subscriber mark. Though this
will make it the third biggest telecom player in the country
within the next 2-month, only time will tell about the
profitability of this company. The industry has definitely taken a
big hit in profitability already and share prices of the big players
have dropped significantly; it seems that consolidation is a
reality just waiting to unfold.
Reliance Jio
Reliance Jio Infocomm Limited announced the launch of its
digital services with JIO in Mumbai on 1st September 2016 with
Jio Welcome Offer. With the permission of Telecom Regulatory
Authority of India, users will have access to unlimited LTE data
and national voice, video, messaging services, Jio applications
and content, free of cost up to 31 December 2016.
Reliance jio Vision:
(i) The best quality broadband network with the highest
capacity;
(ii) A world of affordable, cutting-edge devices;
(iii) Compelling applications and content;
 (iv) Superior digital service experiences;
(v) Affordable and simple tariffs.
Reliance Jio Market strategy
1. Digital solution for Education, Healthcare, Entertainment and
Entrepreneurship.
2. Vo-LET technology with more features
3. Digital currency 4. Cloud Storage with Jio Drive
SWOT Analysis
Strengths
1. Reliance Industries is strong parent company backed up
Mukesh Ambani.
2. Company has begun with 4G service with no tariff. It has
strong financial capability to stand with initial losses.
3. Strong brand image due to excellent marketing and
advertising strategy
4. It has brand ambassadors like shahrukh Khan and Amitabh
Bachchan who has deep influence on masses.
5. It has technological advantages i.e. 4G LTE services with
VoLTE.
6. It has built strong national nework with investment of around
$20 billion.
7. Its network covers all the 22 circles across the India.
8. Jio apps are offering wide range of features like movies,
shopping, chat, cloud, games etc. under one umbrella.
9. Jio compact with affordable LYF smartphones would increase
the brand.
Weaknesses
1. Advertisement showing PM picture would raise new
controversies.
2. Mobile number portability is not very smooth and jio is
expected large number of customers would migrate from
existing service providers.
3. Company has to depend upon data consumption for
profitability due to making voice calling free.
4. Jio made late entry would make difficult to increase market
share.
5. Earlier company’s telecom venture CDMA was unsuccessful.
6. Company has inadequate fide optic capacity.
Opportunities
1. The company can offer telecom services at competitive rates.
2. India has huge market for telecom services because of large
scale availability of smart phones.
3. At international market company has huge opportunity in
many developing countries.
4. Due to technological edge company can also promote
exclusive services to consumers.
5. Company reliance communication has a huge infrastructure
over the country.
6. Lower data tariff plans may further attract advertisement
industry with option of e-marketing.
Threats
1. People would not like to use jio after free services are over.
2. The initial phase of rapid increase it is very difficult to
maintain a large consumer base to cross breakeven point.
3. Existing strong competitors having broader and loyal
consumer base would tough to compete.
4. Indian telecom market is very competitive due to existing big
players like Vodafone, Idea etc.
5. Changing government policies would also create uncertainty
in market.
6. Fast upgrading technology from 2G to 3G, 3G to 4G and next
generation 5G approaching shortly, needs huge investment
plan to remain in market.
Impact on Indian Telecom Industry
Reliance Jio disturb the telecom industry with its free services,
and kept the pressure on competitors by announcing lower
data plans and free voice calls and roaming starting on 1 April
2017. The share market also pays for its aggressive entry in
telecom sector and RIL has jumped 13% in a week.
Reliance Jio has crossed 10 crore subscribers. Now question is
that how many subscribers will convert in to paying
consumers? Many analysts say the number would be 50%.
Reliance Jio’s average revenue per user would be high than
competitors around Rs150. Company expecting average
revenue per user is Rs227 in 2018-19 with more than 50%
subscribers will opt Rs303 plan, while other on Rs149 plan. At
an average revenue per user Rs227 company will need 11.1
crore consumer to reach breakeven point. But if company
further reduces prices due to competition, it will need more
consumers to reach breakeven point.
If 50% of company’s subscribers remain stick to Jio, it will
create serious repercussions for competitors. On other hand jio
consumers who has also attach to other companies would
reduce usage, as the result other companies would face
decrees in average revenue per user.
Aggressive ad campaign of reliance Jio may also affect the
industry’s scenario. It will difficult for other player to grow their
consumer base and it will lead to high promotional expenses.
Other important challenge is drop in pricing power of telecom
companies. Because of aggressive pricing of Jio, other
companies have no choice to reduce their prices. If other
players fail to match the Jio’s offer, their market share will go
down and if they reduce rates, revenue will decree.
It is for the first time since 2008-09 that the annual revenue of
Indian telecom companies turns down to Rs 1.88 trillion in
2016-17 and will decline more to Rs 1.84 trillion in 2017-18. The
annual revenue is probable recover to Rs1.87 trillion in 2018-
19.
Reliance Jio’s extreme capitalism strategy, reflected in large
capital deployment, has a massive effect on the industry. This is
forcing number 2 player (Vodafone) and number 3 (Idea) to
consider a merger. Possibly company is trying an acute
endgame to become a super- dominant player in telecom
industry.
Indian telecom sector is going through a change in completion,
before there is competition regarding cheaper rates of voice
calls and rooming but now the struggle is shifted over data
packs, fastest speed, latest technology and cheaper rates.
The telecom industry directly employed 2.2 million people.
New circumstances could lead to 30% job losses in next 12 to18
months due to automation of teleservices to cut costs.
JIO SUCCESS KEYS
• Jio has changed the nature of mobile services in India. With
its customer-friendly pricing and services, Jio has shown that
India can be a major market for mobile broadband services.
• Jio's success can be attributed to several factors. Those
factors include its ecosystem approach, spectrum holdings,
services and marketing, device availability, and building out a
large nationwide network instead of initially rolling out its LTE
networks in limited markets as the other operators did.
• Samsung has been an important partner to Jio. The vendor
was the key provider of Jio's network infrastructure, and the
close relationship between the two companies helped Jio to
quickly roll out a nationwide network and to ensure availability
of devices that will support the operator's services and
performance requirements.
Recommendations for service
providers Jio provides a template for operators when it comes
to rolling out LTE and even eventually 5G. The operator's
aggressiveness with building its network and creating services
has led it to a market-leading position in India in terms of LTE.
Selecting a good network partner and sharing a common vision
for the development of the network and services is critically
important to success. Mobile operators need to make sure their
network supplier partner can deliver the right mix of gear and
support services.
Jio's LTE launch
Jio makes a big investment with LTE Jio commenced its LTE
services in September 2016. As a new market entrant, Jio did
not previously operate a 2G or 3G network. Its LTE network is a
greenfield deployment. Jio has invested more than INR1,700bn
($25bn) in developing a pan-India communications network and
has committed to invest more than INR2,500bn in the Digital
India initiative. It has 1108MHz of spectrum across the 2.3GHz
(TDD), 1800MHz (FDD), and 800MHz (FDD) bands. The network
covers more than 18,000 cities and 200,000 villages. Population
coverage is estimated at 75%. In addition to a ubiquitous
cellular network, Jio plans to deploy 1,000,000 Wi-Fi hotspots
across India in 2017.
Jio only has an LTE network, so one of the defining
characteristics of its service is VoLTE. Jio does not charge for
voice service. Usage of voice does not count against the data
service package. To help seed the market for service
subscribers, Jio worked with several smartphone vendors,
including Samsung, to bundle Jio's SIM cards with the vendors'
devices.
Jio's market strategy
Jio's marketing strategy is based on five pillars:
• Having the best broadband network – This includes having a
high-speed, all-IP network with broad national coverage and
substantial network capacity based on spectrum holdings. To
augment the LTE network, Jio has deployed Wi-Fi hotspots
• Affordable 4G smartphone and wireless IP devices – Under
the company's LYF brand, Jio has introduced LTE smartphones
with prices starting at around $45. The company also sells an
LTE router for around $30.
• Compelling applications and content – Jio offers its
subscribers an application library and content consisting of chat
and OTT (over-the-top) voice apps, digital wallet, music, OTT
TV, and cloud storage. Content includes a library of 6,000 HD
movies, 60,000 music videos, and more than 10 million songs.
Jio's OTT TV service offers access to more than 300 live TV
channels, of which 40 are high definition (HD).
• Superior customer service – For its initial launch, Jio created
a sign-up process that reduces customer onboarding time to a
few minutes. Jio rolled out an electronic know-your-customer
(eKYC) solution, a paperless way to fulfill KYC requirements, in
more than 200,000 outlets across India. For customers looking
to sign up directly on a phone, there is an app called MyJio,
which can also be used to check service balances and to pay for
service. Compared to existing industry practice usually taking a
few days to activate a new line subscription, this is a significant
improvement.
• Affordable and simple tariffs – As discussed earlier, Jio
charges only for data, while voice services are free. Data
services have been made far more affordable with proposed
rates at a substantial discount to prevailing industry tariffs. Jio
has also simplified tariff plans and made them customer
friendly.
Market impact Jio has had an immediate impact on the Indian
LTE market. Within the first month of operations, it was already
the number one LTE operator based on number of
subscriptions. At the end of September 2016, Ovum estimated
there were 27,491,203 LTE subscriptions in India, of which
16,000,000 were attached to Jio. And, while Ovum does not
have full market data for the months since September, we do
know that Jio has continued to grow. As of mid-February
2017,the operator has reached the 100-million-subscriber
mark.
Jio's support for VoLTE has changed the Indian device market as
well. Samsung estimated the device types supporting VoLTE in
India went from 30 at the end of 2015 to approximately 250 at
the end of October 2016.
Keys to success
Jio's early success is due to several factors. The first of those
factors has been the Indian government increasing the amount
of available LTE spectrum to enable a broader government
strategy called "Digital India."
The key success factors for Jio related directly back to its
strategy. Those factors are its network investment, especially
having a pan-India footprint. Other India LTE providers rolled
out their networks much more slowly, turning up services city
by city instead of on a nationwide basis like Jio. Other factors
that have helped Jio's success are low-cost devices, simple low-
cost service plans, and offering service for free initially. This last
factor enabled Jio to educate consumers about the LTE
experience and draw them in.
As Jio highlights in the interview below, working with a single
"champion" allowed it to move quickly and build one of the
largest LTE networks in the world. Jio also felt the two
companies had a unified vision for creating an all-data network.
Another important contribution from Samsung toward Jio's LTE
goals was supplying datacentric solutions such as SON, VoLTE,
and traffic optimization.
WHAT MR. JYOTINDRA THACKER, PRESIDENT OF JIO SAYS IN
ITS SUCCESS
Why do you think Jio has been so successful in attracting LTE
subscribers?
It's simple and clear. We offer "innovation," and we introduced
several firsts in India. We wanted to offer subscribers
unbeatable service quality in areas such as crystal-clear voice
and mobile entertainment that was not seen in India prior to
Jio's launch.
• Championing [our] vision of a market
paradigm shift from 2G voice to 4G data. • Service
innovation
• Free voice service, HD voice quality (crystalclear voice
through VoLTE), fewer call drops. • Compelling mobile
applications (multimedia content: 300 live TV channels, 6,000
movies, 60,000 music videos, 10 million songs). There are 10–
50 million downloads for the eight media apps [that provide]
rich-quality content.
• Lowest data access rates, affordable devices.
• Process innovation
• Instant digital activation in just a few minutes as opposed to
industry practices.
• Network innovation
• All-IP network, data-strong, and only 4G LTE, [to offer] the
best quality and the highest capacity.
• Future-ready to embrace all new services (augmented reality,
virtual reality, artificial intelligence), easier upgrade to
nextgeneration networks of 5G, 6G, and beyond.
What are the next steps for Jio in terms of new services and
network upgrades?
Jio opened a new era of LTE in India and changed the service
paradigm. The next step is to continue showing initiative with
unconventional new technologies for enhanced user
experience, mainly faster speeds and new, IoT-based services.
With multiple carrier aggregation, Massive MIMO, and more,
we will make gradual steps toward gigabit speed.
What was the motivation or reason that Reliance decided to
enter into the mobile telecom business? It is a totally different
business from Reliance's usual focus on heavy industry. "Jio"
means to live and to be alive. We are going through a Digital
Revolution, where "data" is the digital oxygen for digital life. Jio
will demonstrate the power of data and provide access to each
and every Indian so they can fulfill their dreams and collectively
enable India to take the initiative in global digital leadership.
Currently, India is ranked 155th among 230 countries for
mobile broadband internet access. The idea of transforming
India into a digitally empowered society has motivated Reliance
Group to invest in this new domain of business, and the launch
of Jio will transform the lives of the entire Indian population so
that they receive every opportunity afforded by the digital life.
Products & Services

 Jio Apps
 LYF Smartphones
 Jio WiFi
 4G Broadband
Controversies
Issue with incumbents
 Jio has complained TRAI that other Mobile Network
Companies airtel, Vodafone and Idea are blocking the calls
from Jio Network.
 So, On Sep 2016 a meeting was held by TRAI to discuss the
problem with representatives of Mobile Network
Companies.
 After the Meeting with TRAI & COAI all the Mobile
Network companies are promised to add additional
Interconnect Ports for Jio.
 All other mobile Join together and sent a letter to PMO
that Jio Free Service is making a huge loss for our
companies and they requested to take further steps.