RELIANCE JIO

Reliance Jio Infocomm Limited, more popular known as Reliance Jio, recently shot to news
when Mukesh Ambani announced the ideas and plans of Jio which shook the industry. Share
prices of Airtel, Vodafone, and Idea fell considerably when the launch of Jio was made.
Though the Lyf phones and Jio sim had already started doing the rounds through preview
offer, this was the first proper launch event that took the industry by storm.

HISTORY

In 2005, Reliance Industries Limited split and there was one major de-merger of note for
Mukesh Ambani. His dream project- Reliance Infocom became a part of Anil Dhirubhai
Ambani Group. Mukesh Ambani went on to acquire Infotel Broadband Services Limited. The
company was the only successful bidder for pan-India 4G network. Reliance then worked on
establishing base for high-speed optical fibre 4G network. It is actually capable of much more
than 4G.Then slowly and steadily, Lyf phones made foray into the market with Jio preview
offers. Free unlimited data for 3 months and free voice calls and sms was the way they
entered the market. Lyf phones seemed a decent deal, but it was Jio sim that caught people’s
eyes. Mukesh Ambani’s love affair with telecoms began more than 15 years ago, when he
spearheaded a move into the sector by his family’s Reliance Industries conglomerate.
Ambani lost control of that business in 2005 to his younger brother Anil, in an acrimonious
group break-up that followed the death of their father. Over the past 18 months, however, the
elder Ambani brother — firmly established as India’s wealthiest man thanks to his
company’s oil-refining operations — has made a barnstorming return to telecoms, through
one of the biggest gambles of its kind in global corporate history. His Reliance Industries has
invested $32bn in Jio — an entrant to India’s mobile market that has attracted more than
150m subscribers in less than 18 months. The company has fundamentally transformed the
Indian telecoms market, turbocharging mobile data consumption with its cut-rate tariffs and
triggering a wave of industry consolidation involving powerful rivals, from Vodafone to Tata,
while forcing Anil Ambani’s struggling Reliance Communications to quit the mobile sector.

When Ambani took to a Mumbai stage in September 2016 to announce the commercial
launch of Jio, it came after a six-year gestation period beset with delays. These had prompted
sceptics to ask whether the venture could prove to be the most expensive failed investment on
record. Even before the formal launch, the first public skirmishes had begun between Jio and
the chief incumbents: Bharti Airtel, the market leader led by rival billionaire Sunil Bharti
Mittal; the Indian business of UK-listed Vodafone; and Idea Cellular, backed by the Aditya
Birla family-run conglomerate. In the months leading up to its grand opening, Jio accused
rivals of seeking to sabotage its initial “test phase”, when its network was used first by its
own employees, then by a growing number of users that reached several million. Jio claimed
the other companies had refused to make a sufficient number of interconnection points with
their own networks available, meaning its users faced a high number of call drops.
Reliance Jio Strategy:

Free Internet:

Reliance Jio was launched by providing free internet 4 Gb/day. After 3 to 4 months the
company reduced the data to 3 Gb. Soon after, it was 2 Gb/day. And after 1.5 years of testing
purpose, the company provided 1 Gb/day.Besides, they were providing free internet and India
is price sensitive market. That’s why they able to create very large consumer base before
officially launching the company Reliance Jio Pvt. Ltd.The company gave free internet to the
country. Now, it was time for the company to start making revenue. The company started
with 300 rs for 84 days. And 1 Gb data per day.

Unlimited Calling:

Telecom giant Reliance Jio infocomm ltd. was providing free voice calling to any local
number. This was also the biggest move to capture the large market.It was still better deal
rather than any other telecommunication company in India.Still, you can see the growth of
Reliance Industries. It is only because of Jio. They also started providing Jio mags, Jio music,
Jio cinema, Jio TV and many more.That’s why people prefer to use Reliance Jio sim-card as
secondary card.That’s how ‘Give, Give, Give and ASK’ strategy worked for Reliance
Jio.According to the economic times, Mukesh Ambani had invested nearly 150,000 crores
before the starting of the company.Recently, Jio has crossed 250 million users. And by the
end of 2025, the company is expecting to get 500 million users.