RELIANCE large market chunk and achieved numbers that took

                   RELIANCE JIO INFOCOMM LIMITED

 

COMPANY PROFILE

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Reliance Jio Infocomm Limited or Jio is
an LTE mobile network
operator in India, which is a subsidiary
of Reliance Industries Limited (RIL). It is India’s largest private sector
company, and first telecom operator to hold pan India Unified License. It is headquartered in Navi Mumbai, Maharashtra that
provides wireless 4G LTE
service network (without 2G/3G-based services) and is the only ‘VoLTE-only’ (Voice over LTE) operator in
the country which lacks legacy network support of 2G and 3G, with coverage across all 22 telecom circles in India. Jio has captured a large market
chunk and achieved numbers that took the competition over a decade to achieve.
It is India’s only network which is solely 4G and its USP is the free services
that it offers.

The company adopted a predatory
pricing strategy to enter the Indian telecom market and offered free voice,
data, and message services in the name of its “Welcome Offer” from September 5,
2016, to up to December 31, 2016. Later, the offer was extended up to March 31,
2017, as the Happy New Year Offer. Reliance’s move disrupted the competition in
the Indian telecom sector and major competitors like Airtel, Idea, and Vodafone
were facing huge losses and framing defense strategies to sustain their market
share. They were forced to resort to lowering their tariffs with an eye on
retaining customers. They also tried to block Jio sales by submitting petitions
to the Indian Government and TRAI against the offers of Jio. 

 

HISTORY

          Mukesh Ambani is known for disruption in sector well before
Jio was launched. He launched RCom which led to cheaper call rates while India
was going through mobile adoption through CDMA.

When Dhirubhai Ambani passed away, Reliance was split into 2
where Anil, brother of Mukesh got RCom and Mukesh was asked to sign a bin
compete agreement. Once this expired, he started working on his dream project
to provide mobile cellular services at cheaper rates which was another
disruption point in Indian Telecom history. These disruptive waves continue
till date taking new shape every quarter and keeping the sector analysts
guessing what comes next.

In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel
Broadband Services Limited (IBSL) for ?4,800 crore(US$750 million).
Although unlisted, IBSL was the only company that won broadband spectrum in all
22 circles in India in the 4G auction that took place earlier that
year. Later continuing as RIL’s telecom subsidiary, Infotel Broadband
Services Limited was renamed as Reliance Jio Infocomm Limited (RJIL) in January
2013.

          The company commercially launched its services on 5
September 2016. Within the first month of commercial operations, Jio
announced that it had acquired 16 million subscribers. This is the fastest
ramp-up by any mobile network operator anywhere in the world. Jio crossed 50
million subscriber marks in 83 days since its launch. subsequently crossing 100
million subscribers on 22 February 2017. By October 2017 it had about 130
million subscribers.

 

PRODUCTS AND SERVICES

·       
JioPhone

·       
4G
Broadband

·       
LYF
Smartphones

·       
Jionet Wi-Fi

·       
Jio Apps

·       
4G Phones

·       
JioFi

 

ACHIEVEMENTS MADE SINCE LAUNCH

·        
Jio is the only all
4G all IP network in the world: With over 100,000 sites, backed by
state-of-the-art, all IP network, LTE spectrum across 800MHz, 1800MHz and
2300MHz bands, and largest fiber footprint, Jio has the widest LTE coverage in
India than any other telecom player. Jio’s network to cover 99 per cent of
India’s population. With Jio, India will soon have a larger 4G coverage than
the 2G coverage set up over last 25 years by incumbents. 

·        
Free Voice becomes a
reality in India as the market moves towards data.

·        
Mobile data
consumption in India went up from 20 crore GB per month to over 150 crore GB
per month. Jio customers alone are consuming 125 crore GB of that data. 

·        
India moves from 155
to No. 1 in the world in terms of Mobile Data Consumption.

·        
Jio is exabyte
telecom network. More than 100 crore GB data per month. Jio is already carrying
five times more data than all other telecom players put together in
India. 

·        
Streaming Video in
excess of 165 crore hours per month. 

·        
Voice traffic of
more than 250 crore minute per day.

·        
Time spent by an
average Indian on mobile each week is more than 7 times time spent on TV.

·        
Fastest ramp up of
Subscribers in the world by any technology company. It added seven customers
every second reaching 100 million customers in just 170 days. Today over 130
million customers on Jio network.

·        
Data
democratization: Tariffs have become much more affordable having gone from
between Rs. 250 – Rs. 4000 per GB at the time of Jio launch to less than Rs 50
per GB currently. 

·        
Jio users pay even
lesser per GB per month with the current Rs. 399 plan which offers 1 GB of high
speed data per day for 84 days.

·        
Improving speeds:
The TRAI Speed Test portal, which officially monitors the quality of telecom
networks in India, has consistently ranked Jio as the clear 4G network leader
in coverage, usage and data speeds month after month. It is also evident the
average speeds available to consumers today are consistently improving.

·        
Number of broadband
customers: As on 31 August 2016 the total wireless broadband subscribers were
about 154 million. Post Jio this subscriber base has grown exponentially and as
per TRAI data the wireless broadband subscriber count was over 282 million as
on 30 June 2017.

·        
Tariff simplification:
Prior to Jio there were nearly 16000 plans available to confuse consumers. Post
Jio all operators are trying to replicate the Jio model by trimming the number
of plans being offered. Jio introduced only a few simple tariff plans with just
one or two plans that were considered marquee plans any any point in time.

·        
Exponential growth
of digital ecosystem: All key social media applications and content providers
like Facebook, YouTube and others have seen enhanced user base in India. India
has become most active market for Google and Facebook (70 million additions
post Jio). Also, six million units of the JioPhone sold on the first day.

 

PROMOTION
AND MARKETING

            Reliance Jio
has undertaken an aggressive marketing strategy to create positive brand awareness.
It has launched ad campaigns on television, radio, newspapers, magazines, and
billboards and social media platforms including Instagram, Facebook, Twitter and YouTube. Reliance Jio knows the importance of star
power and has roped in several celebrities to act in its commercials and become
associated with its brand.

At its
launch party celebrities like Rajkumar Hirani, Javed Jaffrey, AR Rehman and
Ranbir Kapoor were invited along with its brand ambassadors Amitabh Bachchan
and Shahrukh khan. As part of promotional activities Reliance, Jio offered free
internet Wi-Fi services at six cricket stadiums during ICC World Twenty20 and
each and every one of its services free till the end of the financial year
2016.

FUTURE
STRATEGY

·        
The company is working on the roll-out of its Fibre to the Home
(FTTH) business offering with beta trials initiated in a few locations. It also
said the scope of beta trials would be expanded over the next few months.

·        
In the coming months, the Jio network will be present in nearly
all the cities, towns and villages of India… and cover 99 percent of our
country’s population.

·        
The company is targeting a revenue market share of 50 percent by
2021.

 

COMPANY
OVERVIEW

Reliance
Jio

Parent Company

Reliance Industries
Limited

Category

Mobile service provider

Sector

Telecommunication

Tagline/ Slogan

Jio digital life

USP

Affordable 4G LTE mobile
network with innovative technology

Reliance
Jio STP

Segment

People with smartphones
looking for high speed internet and good mobile services

Target Group

Urban & tier2 middle
and upper class segment

Positioning

Reliance Jio is helping
transform Indian into a digital and tech-savvy nation by giving affordable
mobile service and data

Reliance
Jio SWOT Analysis

Strengths

1. Strong backing of
parent company ie Reliance Industries backed up Mukesh Ambani
2. Excellent advertising
and marketing of Jio helped the brand have a strong launch
3. Jio has brand
ambassadors like Shahrukh Khan, Amitabh Bachchan which has helped reach out
to masses
4. Innovative technology
i.e. 4G LTE services along with VoLTE
5. Has a strong pan India
presence with its operations in more than 22 cirles
6. Jio apps are a unique
feature offering movies, games, shopping, messenger, chat, news etc under one
roof
7. LYF smartphones at
affordable costs would also boost the brand Reliance Jio

Weaknesses

1. The ad campaign of
Reliance Jio showing the PM was controversial
2. Late entrant in the
India market, i.e. it would be challenging to increase market share
significantly

Opportunities

1. The company can offer
telecom, call, data services at competitive prices
2. Reliance Jio can
promote exclusive services like apps to attract consumers
3. Focus on customer
service and MNP can help the brand overcome competition

Threats

1. Once free services are
over, people would not want to continue using Jio
2. Existing competitors
have a strong presence, and a loyal customer base, which would be difficult
to address to.

Competition

Competitors

1.Airtel
2.Idea
3.Vodafone
4.Tata Docomo
5.Reliance Communications
6.MTNL
7.BSNL
8.Uninor
9.Tata Indicom
10.Virgin Mobile
11.Aircel