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Group 3

Reliance Jio: Revolutionizing Indian Telecom Arzoo Dalal – 17P176, Era Singh – 17P020, Deekshitha Koyinni – 17P140 ,
Kaushik Thacker – 17P176, Riddhima Bansal – 17P219, Ritika Singla – 17P220
What’s it about?

• In 2016, India was the second largest market for telecom industry, Govt. Initiatives
Telecom Industry
however data only accounted 22% of the revenue • Make In India
• 2nd Largest telecommunications market
Program
• The existing players only focused on the 2G and 3G services • Poised to grow at 10.3% YoY
• Shift from voice to data • Led to 23% increase in
• Only 1/3rd out of 1 Billion mobile users, 371 Million, used the data • Growth in smartphone subscribers mobile phone sales in
• 2016 (5% earlier)
services regularly In 2015, Sales of 4G enable handsets
surpassed those of 3G enabled handsets • TRAI and DOT entered
• Jio invested US$20B to acquire the Pan India 4g Spectrum and • Tele density on the rise – 79% in 2015 (Exhibit into various
5) partnerships to
develop the required infrastructure for the same enhance connectivity
• FDI cap removed in 20133
• Business Strategy: Create data abundance and drive up the data in Rural and Urban
History parts of the country
consumption by unique combination of offerings: Low Pricing, On
demand entertainment, Mobile Payment – Jio Money and other • 1947: Nationalized
add on services • 1985: DoT was formed: basic operations in
Delhi and Mumbai
• The Big Question: How should Jio formulate its market entry? • 1991: Liberation of economy paved the way for Regulatory Framework
private players
• 1997: TRAI was formed – Open Competitive • DOT: Vision to
Market accelerate socio-
• Enthusiastic response to free voice calling – Target of 100 • 2000: BSNL Formation (result of NTP-99) economic growth
Million by 2016 • Specific emphasis on
• Resistance from incumbent players – Price Drops Segments Rural area
• TRAI: Vision to create
• Technological Challenges – Nascent Infrastructure
TDSAT: Resolve any
• Long term Debt – Low Margins • Wireline – BSNL – 25.22 Million Subscribers
disputes between
• Wireless – Largest Segment – 1027 Million
licensor and licensee
Subscribers
• GSM 80%, CDMA 20% - Rural - RComm
Major Competitors in The Wireless Market
The Services
Airtel Idea
3G
• World’s third largest mobile • Indian player based in Mumbai
operator – 325 M subscribers • GSM, 2G, 3G, 4G services
• Largest in India – 255 M • Third Largest in India – 176M • In 2010, major shift from voice to data offerings
Subscribers Subscribers • Telecom sector spent 10B USD to acquire the spectrum rights
• 18 Countries – GSM, 2G, 3G, • By august 2016, launched 4G • Much hype around 3G, however customer satisfaction was limited
4G services services across 10 circles • 4G came too soon, investment?
• Market leader in terms of • Did not have any offerings • High taxes and licence fees
revenue and subscribers compared to Jio and Airtel • Innovations in smartphones were skewed towards 4G technology
• Slashed prices by 80% pre-
emptively, bundles services

Vodafone BSNL 4G LTE


• Prepaid and Postpaid GSM • State owned entity based in
• Unification of spectrum holdings across various spectrum through
• Second largest in India – 198 M Delhi
agreements with Rcomm and acquisition of Infotel
Subscribers • Primary goal to provide
• In 2010 Auction, Airtel won only 4/2 circles in 4G spectrum
• Launched 3G services in 2011 telecom services to all parts of
• Airtel became the first to launch 4G in India – Bangalore
• Launched 4G services in 2016 society
• Airtel, Vodafone and Idea maintained 2G, 3G as well in the towers
in Kozhikode • 60% Market share in fixed
which required backend supporting unlike JIO which only kept 4G
• Limitations in terms of telephony
services
spectrum – only eight circles • Fifth Largest in India – 102 M
Subscribers
• Revenues plunging due to
intense competition
The Challenges and The Way Ahead for Jio
The Marketing Strategy
Challenges
Promotion - SRK
• Voice call failures: in Sept 2016 it saw 80% fail rate
• Fluctuating and decreasing internet speed
Home Delivery of Simcards
• Faulty Bundled Apps: crashing, loading issues, long boot time
• Absence on VoLTE in older phones: required to use JIO voice app –
Battery consumption

Ease of Registration -
Bundled Applications AADHAR
Way Ahead
• India – Fastest growing digital audience
• Jio visioned to provide affordable broadband and digital services
which were seen as luxury items in India
Price - Distribution • Lacked seamless consumer experience
• Goal of 100% coverage of Indian Population by 2018

The LYF Smartphone – WiFi


Hotspots
Where should the focus lie in future for Jio?

Speed Competitive Pricing

• With Airtel rated as fastest 4G network in India by Ookla Statistics, • With every 4G operator now offering competitive pricing, Jio
Jio needs to focus on Speed to be considered as a quality operator needs some kind of innovation here as well.
• Jio is rated fourth for Mobile Number Portability preference after • Presence of Jio has been nascent in Postpaid Connections and
Airtel and Vodafone - future outlook should focus more around it.
• Trend suggests that people do not consider Jio to be their Primary • Corporate Plans for employees can be launched
Connection due to speed inconsistency and call drops.

Bundled Applications Smartphones - Collaboration

• Jio offers wide range of applications such as MyJio, Jio Music, JioTV,
• Jio has launched LYF smartphones and feature phones which
Jio Movies, etc.
have met moderate success
• However competitive benchmarking suggests that the quality of
• Jio needs to offer connections with the lucrative smartphones.
competitor’s applications such as Airtel Wynk, Vodafone Music is
For example, Airtel offers Smart EMI plans for various Apple
much higher
and Samsung phones with Post-paid Connection
• For future growth strategy, they need to focus strongly on bundled
applications with the connection as it is a prime consideration while
purchasing a sim card for consumer
Thank You!