TELECOMMUNICATI
ON INDUSTRY
Reliance Jio
Telecommunication industry
India is currently the world’s second-largest telecommunications market with a subscriber base of 1.20
billion and has registered strong growth in the past decade and half. As of January 2019, India has
witnessed a 165 per cent growth in app downloads in the past two years. 4.8 billion downloads of mobile
applications were registered in India in first three months of 2019.The liberal and reformist policies of the
Government of India have been instrumental along with strong consumer demand in the rapid growth in the
Indian telecom sector. The government has enabled easy market access to telecom equipment and a fair and
proactive regulatory framework that has ensured availability of telecom services to consumer at affordable
prices.
Internet access
Internet users 706.73 million (Jan 2020)
Broadband subscribers 581.51 million (May 2019)
Internet penetration 48.48%
(Mar 2019)
Share of World Internet Users 17%
Jio
2019 Launched Jio Fiber in August
Reliance Jio Infocomm Limited, is an Indian 2019 Became the second largest operator in terms of subscribers in
India
telecommunications company and subsidiary of
Reliance Industries, headquartered in Mumbai, 2019 Launched Digital Udaan for first time users
Maharashtra, India. It operates a national LTE network 2018 Approved plan to spin off fiber and tower assets
with coverage across all 22 telecom circles. It does not Adjudged 'Best Mobile Operator Service for Consumers' at
Mobile World Congress
offer 2G or 3G service, and instead uses only voice over
LTE to provide voice service on its 4G network. Jio soft 2017 Announced acquisition of wireless spectrum, tower, fiber and
MCN assets of Reliance Communications
launched on 27 December 2015 with a beta for partners
and employees, and became publicly available on 5 2017 Launched its Jiophone
September 2016. As of 31 December 2019, it is the 2016 Surpasses 50 million subscribers within 83 days of launch
largest mobile network operator in India and the third
largest mobile network operator in the world with over 2016 Commercial roll-out of services in September 2016
370.07 million subscribers. It is also the fourth largest 2013 Infotel Broadband renamed as Reliance Jio Infocomm
provider of fixed telephony in Country.
2010 Reliance Industries Limited purchased 95 per cent stake in Infotel
Broadband
INDUSTRY ANALYSIS
Composition of telephone subscribers FY20
Subscribers Subscribers
2%
Wireless Urban
wireline 43% Rural
57%
98%
SWOT ANALYSIS
STRENGTH OPPORTUINITY
• Technology is advanced and easy to implement: For • Population: The population of India is really an
telecom industry the technology is really advanced and opportunity of telecom service providers, as the number
more and more investment is done on technology to get of population without telecom service is also very high.
world. The industry has to target India’s huge population to
• With 70% of the population living in rural, the rural grow.
market would be key growth driver in future. • FDI will help telecomm company grow world wide.
• In January 2020, Government of India allowed 100 per
cent FDI in Bharti Airtel
THREATS
WEAKNESS
Government Policies – Government may provide licenses
• High Cost of Infrastructure: The infrastructure cost of
to many foreign operators, which may already have pose a
telecom industry is very high.
threat for the existing players in the industry.
• Low customer retention power: The customer retention
New Technology can change the market dynamics: A lot of
power for telecom industry is really low and the
new technologies are coming. Then even have the potential
customer changes their service provider company very
of changing the entire industry dynamics or even create
soon.
substitute of the telecom services existing.
MARKET ANALYSIS
Reliance Jio invested Rs150,000 crore to put this in perspective – this is more than two times the combined investment of
Airtel, Idea, and Vodafone in the 4G Segment.
Jio’s pricing strategy is termed as “predatory pricing” by Airtel.
It is calculated that Reliance will finance about 2500-3000 crore rupees on promoting the Reliance Jio. And it has also tied
up with some small telecommunication services with is leaser than 4G.
Reliance Jio has the longest fiber optic network in the country, ranging over 2,50,000 km and 90,000 eco-friendly 4G Towers
to provide the greatest 4G Coverage in all of India’s 22 telecom circles.
Internet subscriber - The internet subscribers reached 665.31 million as of June 2019.
The number of internet subscribers in the country increased at a CAGR of 41.58 per cent during FY06-FY20
Gross revenue of the telecom sector stood at Rs 61,535 crore (US$ 8.93 billion) during April-June 2019.
India holds the world’s highest data usage per smartphone at an average of 9.8 GB per month.
JIO’s strategy
The success of Jio can be mainly attributed to its clear operational planning which can be summarized into five distinct
steps:
Step One: Undercut the market price by giving attractive discounts and free promotional Data.
Step Two: Let everyone switch to Jio or at least buy a Jio sim to experience data for free
Step Three: Unleash the power of fibre optic network to give super fast internet and make people realise that 1GB data is
not really much.
Step Four: Grow your subscriber base by having good customer care and awesome plans.
Step Five: Recover your investment using the large number of users accumulated.
Reliance Jio advertised their brand by using Indian Prime Minister Narendra Modi’s photo, that advertisement portrayed
that the country is focusing on future India with digitally socialized all around the country, illustrating the government’s
support.
Customer survey
Initial Stage Now
70
80
60
70
67 57.34
60 50
50 40 42.66
40 30
30 33
20
20
10
10
0 0
Primary sim Secondary sim Primary Sim Secondary sim
Conclusion
Today Reliance Jio is an entire ecosystem that allows Indians to live the digital life to the fullest. This
ecosystem consists of powerful broadband networks, useful applications, best-in-class services and smart
devices distributed to every doorstep in India. Jio’s media offerings include the most comprehensive libraries
and programs of recorded and live music, sports, live and catch up television, movies and events.
Third largest telecom-operator in India.
More than 331.3 million subscribers.
Total Broadband subscribers stood at 370.76 million as of end of November 2019.
Lowest call drops in the country.
Standalone total income of Rs 38,844 crore (US$ 5.56 billion).
Done By – Sanjay
THANKYOU
Submitted to – Dr.Cyril Castro
Subject Code – MGT110
URN – 2019 – B – 12062002B
