Reliance Jio: A Game Changer in Telecom Sector
The telecom industry is under tremendous pressure from past some time and the announcement by Mr Mukesh Ambani today is definitely going to create more ripples.
In the last few years, most of the Indians are addicted to mobile telephony. The 82% teledensity among the Indians can be attributed to affordable plans, availability of cheap handsets and the last-mile connectivity. It is a long journey from the time when having a landline connection at home was a status symbol to the present state and this is commendable and quick.
Though the fight for capturing the market share in the Indian market was on for some time, Reliance has thrown a googly at all other players with its new Jio. The VoLTE service was the talk of the town in the past few months in its beta phase, but today in the 42nd AGM of Reliance industries it was dedicated to the nation and will be available to anyone from 5th September.
The biggest benefit of the internet is that it saves cost and time to get the essential services done and increases the convenience factor as you can complete them on the go or from the confines of your home or office.
Reliance Jio is coming with free voice calls and also zero roaming charges. This will lure the customers towards Reliance, which is aiming to have 100 million customers in the least possible time to build its 4G network. Its network will cover almost 18,000 towns and cities and two lakh villages. They are looking forward to achieving the goal to cover 90% of the Indian population by March 2017, which is just a few months from now and is a mammoth target by any standard.
Aimed to provide superior service, best quality broadband network, affordable tariff and affordable 4G devices, Reliance also has another big tick in its plan. It has announced that there will be no blackout dates as was the norm till date. Every day is the same and will be charged similarly.
Reliance Jio has, in fact, started a war that is difficult to fight by announcing prices that come to a mere 5 paise per MB of 4G data. This is catastrophic for the other players in the field as they were charging much more for 2G data. Now when customers will get 4G data at a price, which is a fraction of 2G, why will one go for other connections? If these players need to retain their customer base, they have no choice but to match the prices of Reliance Jio.
Mr Ambani’s announcement of ‘free welcome offer’ for those who plan to take Jio is set to wipe out the customer base of the other players of the field. It is offering free data services to its users for four months from September 5 to December 31 after which they can choose one of the 10 attractive tariff plans offered by Reliance.
With the customer loyalty and mindshare changing at the drop of a hat, it’s important for telecom operators to focus on what really matters: offering supreme consumer experience. In the end, the game-winners would be those who offer reliable and consistent experiences and not just free services.