DEPARTMENT OF LAW, PRESTIGE INSTITUTE OF MANAGEMENT &

RESEARCH

Reliance JIO

Business Environment Project

SEPTEMBER, 2017.

SUBMITTED IN THE PARTIAL FULFILLMENT OF B.B.A.L.L.B (Hons.),

THIRD SEMESTER

SUBMITTED TO:- SUBMITTED BY:-

Proff Ankit Ramesh Walia SHUBHAM SINGH KIRAR

11110300124

YAMINI KHICHCHI

11110100162

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Contents
Introduction ………………………………………………………………….. 4

Case Study ………………………………………………………………….. 4

History…………………………………………………………………………5

Product & Services ………………………………………………………….5

Jio apps ……………………………………………………………………….6

LYF Smartphones …………………………………………………………...6

JioNet Wi-Fi …………………………………………………………………..7

JioFi Wi-Fi …………………………………………………………………….7

4G Broadband ………………………………………………………………..7

Current Scenario ……………………………………………………………...8

Controversies ………………………………………………………………….9

SWOT Analysis ………………………………………………………………..10

PESTEL Analysis ……………………………………………………………...11

Conclusion ………………………………………………………………………12

Recommendation ……………………………………………………………….13

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ABSTRACT-

This project is based on the original reports gathered from different online sources
and newspaper reports, project consist of the case study and SWOT, PESTEL
analysis and different marketing schemes of company JIO info COMM and other
required information about the company is also mentioned. Jio established in India
on 27 DEC 2015 under the brand name of Reliance. Owner of the company
“Mukesh Ambani” came up with the main marketing policy for Jio and it was
providing free and charge less services to customers for about a year. And also
claimed that the charges after ending the free session of services will be so much
affordable.

Jio launched a lot of free music, videos, movies, TV, Radio and other useful apps
and their subscriptions for free. The company met a lot of ups and downs in the
journey of its success like a lot of peoples complained about internet speed issues
and also of poor networking. But finally, everything got settled users loved the idea
of voice over LTE which means you can call other user using your mobile data
over the network which is a LTE or Long-Term Evolution Network. Jio is now one
of the most popular telecom company of India

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 Introduction-
Reliance Jio Infocomm Limited, or Jio, is an LTE mobile network operator in
India. It is a wholly owned subsidiary of Reliance Industries headquartered
in Navi Mumbai, Maharashtra that provides wireless 4G LTE service network
(without 2G/3G based services) and is the only 'VoLTE-only' (Voice over LTE)
operator in the country which lacks legacy network support of 2G and 3G, with
coverage across all 22 telecom circles in India.

The services were first beta-launched to Jio's partners and employees on 27

December 2015 on the eve of 83rd birth anniversary of late Dhirubhai Ambani,
founder of Reliance Industries, and later services were commercially launched
on 5th September 2016.

 History-

In June 2010, Reliance Industries (RIL) bought a 96% stake in Infotel

Broadband Services Limited (IBSL) for ₹4,800cr. Although unlisted, IBSL was
the only firm to win broadband spectrum in all 22 zones in India in the 4G
auction that took place earlier that year. Later continuing as RIL's telecom
subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio
Infocomm Limited (RJIL) in January 2013. In June 2015, Jio announced that it
will start its operations all over the country by the end of 2015. At the beginning
test stage, Jio was opened only for the employees of Reliance Industries. The
company commercially launched its services on 5 September 2016.Within the
first month of commercial operations, Jio announced that it had acquired 16
million subscribers. This is the fastest ramp-up by any mobile network operator
anywhere in the world.

 Product & Services-

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  Jio Apps
 LYF Smartphones
 Jio WiFi
 4G Broadband

 Jio Apps-

In May 2016, Jio launched a bundle of multimedia apps on Google Play as part
of its upcoming 4G services. While the apps are available to download for
everyone, a user will require a Jio SIM card to use them.

 MyJio - Manage Jio Account and Digital Services associated with it.
 JioTV - A live TV channel service.
 JioCinema - An online HD video library.
 JioChat - An instant messaging app.
 JioMusic - A music player.
 Jio4GVoice (earlier JioJoin) - A VoLTE phone simulator.
 JioMags - E-reader for magazines.
 JioXpressNews - A news and magazine aggregator
 JioDrive - Cloud-based backup tool.
 JioMoney Wallet - An online payments/wallet app

 LYF Smartphones-

 In June 2015, Jio tied up with domestic handset maker Intex to supply 4G
handsets enabled with voice over LTE (volte) feature. Through this, it
plans to offer 4G voice calling besides rolling out high-speed internet
services using A fibre network, in addition to the 4G wireless network.

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 However, in October 2015, Jio announced that it would be launching its
own mobile handset brand named LYF.
 On 25 January 2016, the company launched its LYF smartphone series
starting with water 1, through its chain of electronic retail outlets, reliance
retail. Three more handset models have been released so far, namely
water 2, earth 1 and flame 1.

 JioNet Wi-Fi-
 Prior to its pan-India launch of 4G data and telephony services, Jio has
started providing free Wi-Fi hotspot services in cities throughout India .
 Jio also provided Free Wi-Fi at Six Cricket Stadiums hosted ICC 2016 –
T20 World Cup Matches.

 JioFi Wi-Fi-
 Jio also providing a portable Wi-Fi Hotspot & Router to Connect 10 Wi-
Fi Devices and One on USB
 Sleek and light-weight device to keep you connected on-the-go.

 Case Study-

 Mukesh Ambani's Plan for JIO

Billionaire Mukesh Ambani's Reliance Industries Ltd. plans to inject about 1 SO

billion rupees ($2.2 billion) into its wireless unit as it prepares to take on peers
such as Bharti Airtel Ltd. in the world's second-largest mobile phone market.
The unit, Reliance Jio Infocomm Ltd., will issue 15 billion new shares at 10
rupees each to existing shareholders, the India-based company said in an
exchange filing late Monday, without saying how it would spend the money.
The industrial group owns more than 99 percent of the affiliate, according to its
201 S annual report. Ambani, India's richest person, is plowing more money
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into the wireless business as he prepares to shake up the country’s crowded,
indebted industry by introducing fourth-generation wireless services through
Jio. The Reliance unit has been buying spectrum since 2010 under a plan to
return this quarter to a market that now has more than 1 billion mobile
subscribers. Jio's capital expenditure now is "above 1 trillion rupees," not
accounting for the payment for the spectrum pacts, Thakur said, adding
Reliance Communications hasn't been paid anything for the spectrum
agreements yet. Jio could evaluate options for sharing and trading airwaves with
smaller carriers, Joint Chief Financial Officer Srikanth Venkatachari told
reporters. Reliance Jio is expected to get 80 million subscribers by March 2018,
with more than half churning out of the top three operators, according to a Jan.
1 1 report by CLSA, "escalating the competition and impacting realisations."
Billionaire Sunil Mittal, chairman of India's largest carrier Bharti, had said Jio's
entry will shake up the sector and trigger consolidation.

 Offers for Customer:

Reliance Jio was launched with free unlimited calling and data usage for 3
months which was extended for another three months later as a special
offer.This was one of the biggest reason for its popularity among the masses.
After April 2017 customer has to pay for their calls and data usage there are
many very reasonable price plans from which you can choose to use.

 Impact on Other Service Providers :

Reliance Jio offers and data rates were so low that many people switched their
existing network to Jio which cause a lot of unrest to the other operators due to
which they have to make some drastic changes to remain in the competition.
The merger of Idea with Vodafone and Airtel with Telenor are the result of that.
Also, the data usage rates for other operators also came down drastically. It is
safe to say that Jio has completely changed the way network operator used to
charge the customers for the services.

Impact on Digitalization of India :

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The Indian government was working on Digital India from last three year. The
main aim of this scheme is to make all the government schemes and facilities
online for which we need internet connectivity in low rates so that people can
use these facilities. Reliance Jio has provided a big boost to this by providing
fast pace internet at low rates. India is expecting to cross 500 million internet
users this year which is a huge improvement over the last few years.

Low data usage rates made it possible not only in the urban area but also in rural
areas. As per the reports in India, 48% of total internet users are from rural
areas.

 Controversies-

Issue with incumbents

Jio has complained TRAI that other Mobile Network Companies airtel,
Vodafone and Idea are blocking the calls from Jio Network.
So, On Sep 2016 a meeting was held by TRAI to discuss the problem with
representatives of Mobile Network Companies.
After the Meeting with TRAI & COAI all the Mobile Network companies are
promised to add additional Interconnect Ports for Jio.
All other mobile Join together and sent a letter to PMO that Jio Free Service is
making a huge loss for our companies and they requested to take further steps.

Issues with Speed

In October 2016 , Ookla , a reliable speed testing source revealed that Jio's
speed in several regions is encountering speed falling drastically.
Ookla reports that the Jio's internet speed decreased 23% month-over-month
from 11.31 Mbps to 8.77 Mbps, continuing a downward trend for 2016.
This report came when Jio already had 15 Millions customers in short time.

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 Future Plans-
As we earlier said Jio is facing the issue with Speed of Internet, So company is
mainly planned to focus on that issue and solve as soon as Possible.
Jio also planned to enter into the Broadband Network to make a revolution on
the Wired Internet Connections.
Jio is providing the Jio Services by Jio Apps and IT Team of Jio is developing a
new Apps that may need for Upcoming Generations.
IT Team also focus on upgradation of current apps and adding new features.
As of rumors Jio planned to Continue Free Voice Call Services on Future.

 4G Broadband-

 The Company is Planning to launch 4G Broadband Services at low cost.

 The company has a network of more than 250,000 km of fibre optic
cables in the country, over which it will be partnering with local cable
operators to get broader connectivity for its broadband services.
 With its multi-service operator (MSO) licence, Jio will also serve as a TV
channel distributor and will offer television-on-demand on its network.
 As of now, there is no proper tariff has been released from the company
about 4G Broadband Services.

 Current Scenario-

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  Jio is currently with user base of 16 Million +.
 Jio is currently providing Free Services to all its customer’s until
December 31, 2016.
 Jio is offering Free Calls to any network throughout the country.
 Jio offering Free Roaming over the Country.
 Jio offering Free Service for iPhone7 until December 31, 2017.
 Jio dhan-Dhana-Dhan offer includes unliited mobile and data services for
84 days at just 399/-.

 SWOT Analysis-

STRENGTH

 The Cheap priced Tariff plans.

 Jio Apps Services.

WEAKNESS

 Call Drop Issues.

 Unpredictable future plans.

THREAT

 Increase user base may cost reduce in Speed.

 Other Competitors may reduce their tariff plans to compete with Jio.

OPPOURTUNITES

 Jio is the First Indian Network to Offer Free 4G Services and it got
reached everywhere.
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  If Jio Continues the Same Tariff Plan for Few Years, it may become No. 1
network in India.

 PESTEL Analysis-

The following paragraphs will cover all the six factors which of PESTEL
analysis ;-
Political Factor-
The most strong and well established market brands like Airtel, Idea is a threat
to the new and developing brand of Jio but being a part of Reliance telecom Jio
has already got a platform for making a grand entry in market.
Economic Factor-
Being so cheap at plans and telecom services, Jio has proved himself
economically worth and also giving a tough competition to Airtel, Idea and
other well known brands. Jio also has provided free services for a very long
time.
Social Factor-
Jio’s main criteria is to make India a Digital India and which involves adding
more and more peoples to social networking and making them aware of the
outside world.
Technological-
Jio has VOLTE, LTE and 4g technologies which are the latest and advanced
ones in India.
Environmental-
TeleCOMM networking should have the lower SAR values which define the
EM-radiation level and jio’s SAR value is 1.78 w/kg which is much less than
the limit valve which is 2.48 w/kg.
Legal-

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Jio’s has fought some cases against other companies but the reputation is very
clean and untampered too. That proves that the legal aspect of Jio is good
enough.
Company Analysis

t is a well-accepted fact that everything Reliance Industries (RIL) does has

‘scale’, but what the recently conducted annual general meeting (AGM) of the
company did, has established it as a corporate giant with ‘style’ along with
substance. Right from the town-hall styled full-screen visuals in the backdrop to
the peek into the privileged footage of Dhirubhai Ambani’s journey through
various milestones, to the dramatic suspense-laden announcement of the pricing
of the Jio Phone as a postscript to Mukesh Ambani’s speech — all of it made for
a captivating and engaging piece for shareholders and investors across the
spectrum. However, those 100 minutes of the AGM aforementioned have
arguably but unequivocally begun the process of changing the economic
landscape of our country in years to come. What RIL has launched in the form
of an affordable Jio Phone handset is not just a great tweak to the business
model that the company is likely to follow to make itself profitable, but it could
pave the way for changing the lives of millions of Indians in ways that possibly
were only part of conjecture on the making of a newer India (Bharat).

It is the RIL stock that will benefit largely due to the now-visible cash flows that
can dramatically improve the return on equity for the stock as the huge
investments of over 200,000-crore start getting better utilisation through the
addition of newer subscribers. And as it happens when a giant rumbles up from
sleep after many years, it is bound to shake up the earth around it a bit. As
investors, it may be worth watching this space closely to identify which
businesses could walk in step with the reawakened giant and benefit from
investing in those.

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 Conclusion-

 In India, FREE is a not just word, it’s an Magic or Emotion to Change the
People’s mind and make them to fall on the particular Product or Thing.
Jio is following same tactics to reach people and grow its network.

 As we mentioned earlier, Jio is offering FREE Services until December

31, 2016. But No one Knows what may going to happen after December
31, 2016 as so the Tariff Plans are already announced.

 People are at comfort with the Speed of 4G. It is tough for the People to
leave the Network. Mukesh Ambani understand the feelings of the
customer and make profit on our feeling and emotions.

 Recommendation-

 Jio should not improve the plan values in future otherwise the market
demand may decrease because the cheap data plans and free
communication is the main market strategy Jio came with and the only
plus point because of more and more users got attached with jio.

 Jio should improve its networking because sometimes using jio can be so
problematic.

 Jio should use USSD codes to check data balance instead of jio apps that
will make things easier for other non-techy peoples.

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