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Case Study - "Gamechanger - Reliance Jio"



Reliance Jio Infocomm Limited, more popular known as Reliance Jio, recently shot to news when Mukesh Ambani announced the ideas and plans of Jio which shook the industry. Share prices ofAirtel,Vodafone, and Idea fell considerably when the launch of Jio was made. Though the Lyf phones and Jio sim had already started doing the rounds through preview offer, this was the first proper launch event that took the industry by storm.


Back to 2005


In 2005, Reliance Industries Limited split and there was one major de-merger of note for Mukesh Ambani. His dream project- Reliance Infocom became a part of Anil Dhirubhai Ambani Group. Mukesh Ambani went on to acquire Infotel Broadband Services Limited. The company was the only successful bidder for pan-India 4G network. Reliance then worked on establishing base for high-speed optical fibre 4G network. It is actually capable of much more than 4G.

Then slowly and steadily, Lyf phones made foray into the market with Jio preview offers. Free unlimited data for 3 months and free voice calls and sms was the way they entered the market. Lyf phones seemed a decent deal, but it was Jio sim that caught people’s eyes.


If market trends are anything to go by, trajectory of RJIL has been on an upswing. It is not a publicly listed company in BSE. But the impact its launch had on Bharti Airtel, Vodafone, and Idea clearly showed the trajectory it is following. With a target of covering pan-India by first quarter of 2017 and letting people into the world of data-giri, they have huge plans with all the bases covered.


At the price point and service quality, there are virtually no competitors of RJIL. These mark ominous signs for the other companies, while RJIL will continue to take an upward trajectory.




Tie up with Intex


Jio had earlier tied up with Intex for providing handsets with 4G VolTe technology all over the country. They manufactured several models low on cost and high on features- ready for the next level of 4G and voice telephony. However, they soon decided to launch their own brand of phones. They named the range as Lyf phones. The names have been consistent with the models such as Water 1, Water 2, Flame 1, Flame 2, Wind, Earth, among others.At present, the company offers more than 15 handsets with varying range of features.


Services


Jio 4G Broadband is one of the game-changers. The destructive idea that RJIL has proposed, has shook the market. With Jio 4G broadband, people may be able to access high-speed broadband for as low as Rs. 50 per GB. With 2300 Hz spectrum for 4G all over India- 22 circles, and 800Hz and 1800Hz spectrum for 4G in 10 and 6 circles respectively, Jio has it all covered.


The licenses are valid till 2035. With 250,000 km of fibre network across the country, it is supposed to be the fastest and the widest network with least data drop. With Jionet WiFi, it can be used to transmit WiFi in homes and offices at affordable prices.


Initial testing of Jio sim has been excellent. Most of the users are reporting an unseen internet speed and consistency. However, the quality of Lyf phones isn’t upto the mark, but the internet services have majorly received a thumbs up. With 4G Jio sim now being available for everyone, soon more and more users will join. Especially enticing is the offer of 90 days free unlimited data and free voice calls and sms forever, which will garner more permanent users for Jio.

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