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Reliance Jio leading the race , what’s the reason?


Reliance Jio is racing ahead strongly and speedily to become India’s largest telecom company. As per Telecom Regulatory Authority of India ( TRAI), Jio has become India’s second-largest telecom company with 323 million subscribers in May 2019 and surpasses Bharti Airtel. Vodafone Idea is leading the market with 387.6 million subscribers.

But the speed and strategy followed by Reliance Jio will make the company the no.1 telecom company of India in the very near future.

How? Let’s discuss some technicalities

Reliance Jio entered the Indian telecom industry before 3 yrs ( Commercial launch in 2016) and offers only 4G services. It expanded its subscriber base very fast because it entered the market offering free sim cards and services. The company offered the data plans at a very nominal rate of Rs.19 also. Jio’s affordable plans which attract the mass, its continuously up gradation of services and data plans, new and innovative product offering like recent  Jio Giga Fiber and Jio Giga TV, making it very difficult for its competitors to keep a hold on the market.

The Numbers Comparison

In spite of offering services at affordable rates, Jio has managed to make profits. The company reported a 6.1 % growth in profits at Rs. 891 crores and a 5.2% increase in revenue at Rs. 11,679 crores for the 1st qtr. of Fy 2019-2020 as compared to the previous qtr.

While the competitor Vodafone Idea made a loss of Rs4874 crore during Q1 of Fy 2019-20. Vodafone Idea is losing subscribers because they are concentrating on increasing Average revenue per subscriber, which leads to offering services and data plan at higher rates. Further, recently Government charged a penalty of Rs.30.5 billion on Vodafone, Idea, and Airtel for denial of interconnection.

The Future

Reliance Jio is heading towards expanding its telecom tower network, and company’s aim will get a strong boost because of the tie-up with Brookfield Asset management company. Brookfield and other investors are set to invest Rs.25,215 in Reliance Jio Infratel. This deal will reduce the company’s debt, will boost the towering network and indirectly strengthen RIL also.

So, What’s the Conclusion?

Offering to the mass, affordability, userfriendly, continuos innovation, Efficient and effective advance planning, all these are the reasons for Reliance Jio’s success

Share your views.

What do you think?

The Starterr

Written by The Starterr

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