Reliance Jio to Create an Impact on the Telecom Industry

Mukesh Ambani-led Reliance Jio is offering data packs and smart phones at highly discounted prices. Cellular devices like LYF FLAME 4, FLAME 5, and FLAME 6 are now being sold for Rs. 2999, at a discount of Rs. 1000.

Smart phone discounts

According to a Gadget 360 report, LYF devices are being offered at highly affordable rates to attract customers. LYF mobile price is Rs. 3499 for FLAME 2 with a hefty discount of Rs. 1300. LYF WATER 2, WIND 6, and FLAME 2 are the other devices that are rapidly selling out. The handsets cost Rs. 9499, Rs. 5999, and Rs. 3499 respectively.

Reliance’s telecom background

Mukesh Ambani, CMD of Reliance Industries, had revealed the pricing strategy of Reliance Infocomm in 2002. Not only did it give tough competition to rivals in the telecom industry, but also earned the company over a million subscribers in the first ten days itself. Compared to the high incoming and outgoing call rates offered by other providers, Reliance Infocomm had offered plans of 10 paise/15 seconds along with free incoming and value-added services.

Present scenario in the telecom industry

Although the competition between telecom operators in the past was regarding call rates, the present scenario portrays a battle to offer efficient data services. India is rapidly growing in terms of internet penetration and competitors too are improvising to offer better plans with higher speeds.

Although Reliance Jio has not yet launched its data services commercially, once full-scale operations commence, it will offer data services at reasonable rates starting from Rs.300.

Jio’s infrastructure

In order to provide seamless voice and data services, Jio signed an agreement with Bharti Airtel which will enhance its infrastructural support. This would enable Jio to increase its data capacity through the Bharti Airtel-owned i2i submarine cable. Jio also has ample access to spectrum in 22 telecom circles across the country.

CDMA users of Reliance have been offered an upgrade to the Jio 4G network using a Jio SIM. Additionally, one can also avail of a Jio SIM through the employee referral program, or by purchasing a LYF smart phone. 

Access to spectrum

Mukesh Ambani attained Infotel Broadband Services in 2010 for Rs. 4800 crore. It is one of the leading companies to have acquired spectrum on a pan-India level. Jio has also signed deals with Reliance Communications for spectrum-sharing as well as trading.

The company has also become part of an international alliance. The alliance includes telecom players like Telekom Malaysia, Omantel, Vodafone Group, Dialog Axiata, and Etisalat. This will help connect India globally, with the help of the Bay of Bengal Gateway (a submarine communications cable)

Jio’s offerings

Reliance Jio aims to distinguish itself from competitors by offering various services ranging from high-speed data facilities, voice calls assisted by LTE technology, to content streaming applications.

Summary

Prior to the commercial launch, Reliance Jio is offering LYF smart phones at discounted rates. It will also offer voice and data service packages starting at Rs. 300.

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