Mary Meeker Report Highlights the Role of Jio in Driving Indian Internet Growth

The 2017 edition of the Mary Meeker Annual Internet Trends Report claims that Mukesh Ambani led Reliance Jio has played an important part in increasing Internet usage among Indians. With 355 million Internet users, India comes second in the world after China. The report also suggests that this 355 million equals to only 27 percent of population penetration, which means that there is still a lot of scope for increasing the number of Internet users and thus making it a lucrative market.

The report claims that despite Jio’s breakneck rapid growth has slowed down ever since the telecom provider has started charging for its services in 2017, there has been a surge in the Internet usage by Indian consumers. There are two reasons being attributed to this:

  • Firstly, there has been a trend of smart phone prices declining over the years making them more affordable.
  • Secondly, there has been a fall in Internet prices due to the price wars that started when Jio entered the telecom market.

How Jio conquered the market?

According to the Mary Meeker report, the cost of offering a 1 GB data plan per month is approximately INR 123 or around INR 1,482 on an average for 12 months. According to international standards, this cost is below the affordable limit of the Internet.

In September 2016, when Jio launched its services, it offered customers 4 GB data per day for free till December 2016. Post that, Jio rolled out its ‘Happy New Year’ plan, where consumers were offered 1 GB data per day for free. This is what forced other telecom operators to lower their data costs.

In March 2017, Jio announced its Jio Prime plan where consumers had to begin paying for data. However, the average cost per GB of data was still very low at around INR 11 per GB. This was much cheaper than what the other big players in the market were offering.

In February 2017, Jio announced that it had crossed the 100 million subscriber mark and as per figures recently released by the company, 72 million customers have enrolled in Jio’s Prime plan. With this, Jio has cornered around 39 percent of the mobile broadband market in India and 79 percent of the total Internet traffic. Besides, according to Mukesh Ambani, the Chairman of the company, every month, Jio subscribers were using 100 crore GB of data during that time.

About Reliance Jio

Reliance Jio Infocomm is a subsidiary of Reliance Industries Limited (RIL). The telecom company is currently headed by Mukesh Ambani. It was launched in September 2016 and has since then witnessed rapid growth.

After conquering the Indian mobile broadband market, Jio is now planning to roll out its fixed line broadband service by Diwali 2017. The company will offer high-speed broadband Internet at attractive prices.

Summary

According to the Mary Meeker Annual Internet Trends Report, Reliance Jio has helped in the significant growth of Indian Internet through its affordable plans and offers.

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