Reliance Jio has made its incredible entry into Indian mobile Telecom sector with its cost leadership strategy. It had competed with Indian telecom giants like Vodafone, Airtel, Idea and many others but still could manage to disrupt the existing market with its massive launch. It has made tremendous penetration in Indian telecom market and is also sustaining very effectively. It not only created a market for itself but have also changed the life style of the people as well as the entire Indian telecom sector.
It has changed the telecom sector drastically with its offers like free voice calls and 4G services at a very cheap rate which changed the data consumption pattern of the people. The service provided its consumers the option to watch and enjoy more online videos, video callings and other contents. This step taken by Reliance Jio have made the Indian consumers to become the biggest consumer of mobile data in the world leaving behind China and USA. There are plenty of ways Reliance Jio has changed the Indian telecom sector. Some of them are explained below.
- Presently the data consumption in India goes up from 20 crore GB/ month to 150 crore GB/ month. Now- a-days, the average data consumption of a person is 10 GB/ month.
- Availability of data at a very cheap rate: Data tariff costs have reduced from Rs 250/ GB to nearly Rs 50/GB.
- Voice calling at a very cheap rate: Earlier voice calling rate was a great matter of concern for the customers. But now with the introduction of Jio, voice calling rates has reduced to around Rs 250 from Rs 350- 400
- The number of broadband subscribers have jumped from 154 million to nearly around 284 million at present.
- It has also led to massive proliferation of 4G smart phones which ranges from as low as Rs. 1499 to the high end ones.
- With the introduction of 4G in the market, the mobile data speeds have also increased to a large extent.
- The sim activation time which is done digitally now has also come down. Earlier it took one day on an average. But now, it takes only around 15 minutes to activate a sim card.
- The average revenue for voice calls per user have come down from Rs. 180 to Rs. 68
So to summarize, it can be said that Reliance Jio 4G is no doubt a turning point for the Indian telecommunication sector. It has not only benefited people from paying high tariff price, but have also increased the average consumption of data. Because Jio runs on the 4G enabled handset, there is an increase in productivity of mobile phones in India.
-Sourav Chatterjee
Batch-PGDM (2017-19)
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