Faculty : Mr.

Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

Draft Questions on Facebook-Jio Collaboration in India

1. How has the advent of Reliance Jio impacted the growth of Internet
consumption in India and what future scenario can be depicted.
2. Should Jio Platforms aggressively pitch for 5G adoption in India? How will it
benefit the company?
3. What should Reliance Jio do to repeat its success in the retail business in
India and dislodge the present incumbents Amazon and Walmart/Flipkart to
be the number one in e-retail in India?
4. What are the pros and cons of O2O model for retail business in India? Is this
the best marketing/ operational strategy which Reliance Jio can adopt,
leveraging its collaboration with Facebook?
5. What do you understand by Net Neutrality? In the context of investment
made by Facebook in Jio Platforms, what is the likely impact of this duo on
net Neutrality?
6. What are the data privacy issues flagged in the case? How does the data
protection daft bill compare and contrast with GDPR adopted by EU
countries?
7. In what manner strong policies on data localization as advocated by the
Government of India will impact leveraging of collaboration between
Facebook and Jio Platforms support Jio Platforms in achieving a better
performance or conversely lead to a poorer performance? Please give your
reasons.
8. Is there a case for stronger engagement by CCI to scrutinize the Facebook Jio
Deal? On what grounds?
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

2.Should Jio Platforms aggressively pitch for 5G adoption in India? How

will it benefit the company?
Answer:
Yes Jio platforms should aggressively pitch for 5G adoption in India. Reliance Jio is in
a better position to launch commercial services based on fifth-generation or 5G
technology, following its network readiness. Reliance Jio would play a key role in the
development of the 5G ecosystem in India based on the market dynamics. Jio with its
5G-ready network and extensive fibre assets, would play a key role in the development
of the 5G ecosystem in India. Reliance Jio Infocomm Limited revolutionised the
telecom sector.
The scenario of Indian telecom market before JIO entered was:
 There were more than 1 billion mobile users in India, out of which only
34%were connected to the internet.
 •Only 12% from these 1 billion used 3G data or above
Then came Jio which took the market by storm by offering Data Centric plans and free
promotional data.
One of the biggest strength of Jio to pitch in for 5G is
• Innovative technology-Jio currently uses the latest 4G LTE technology which is one
of the world’s best technologies for the future. This is supported by Voice over LTE
which makes it scalable and supportive of 5G and 6G technologies which are expected
to be the future in wireless communication.
Jio already working on 5G-capable devices with plans afoot to launch new
smartphones in tandem with the commercial roll out of 5G services after allocation of
spectrum post auction which makes it only company who can pitch in 5G.
Jio’s own IMS (IP Multimedia Subsystem) solution (vIMS) for VoLTE and VoWiFi is
live since October 2019. It was previously using Nokia and Oracle’s IMS and related
technology to offer 4G voice service. This is for the first time that an Indian product
has replaced European and American technologies. Eight billion calls per day and 4.5
billion SMSs per day are now handled on Jio’s own technologies - TAS, IPSMGW and
SMSC.
Reliance Jio says India is 5G-ready, rivals(such as Airtel, Vodafone etc)
complain of financial stress and lastly adoption of 5G will boost the job creation by
telecom sector which will enhance the digital economy and learning towards it.
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

Future driven technology Reliance Jio uses VoLTE 4G network which is scalable to
accommodate 5G and 6G technologies. This offers numerous avenues to Jio or future
expansion of bandwidth
How will it benefit the company?
With speed, 5G network is also expected to handle increased volumes of traffic leading
to software skills like cloud, virtualization, Dockers, Kubernetes will also experience a
spike in demand. The adoption of 5G will also see a greater adoption of IOT across
sectors and thereby opening up more avenues for professionals skilled in IOT.
Jio that forayed into pure-play fourth-generation or 4G services in September 2016, is
the only profit-making telco that intends to switch to a 5G network after bidding for
airwaves in the upcoming sale.
Reliance Retail, a subsidiary of oil-to-logistics conglomerate Reliance Industries
Limited (RIL) had parallelly launched cost-friendly 4G feature phones, under the LYF
brand in January 2016 to complement Jio's telecom network.
Jio has designed its own hardware for the 5G technology, which could be made in India
once 5G trials are successful along with the Internet of Things (IoT) gear. Having
developed end-to-end 5G technology, Jio would be able to bring a wide array of use
cases like security and surveillance using drones, industrial IoT and digitisation in the
agriculture sector.
Jio is actively looking to build 5G and IoT technology capability in-house through a
mix of organic and inorganic approach. The move is unprecedented not only in India
but also globally as most operators have relied on technology vendors for network
equipment.
Jio’s own IMS (IP Multimedia Subsystem) solution (vIMS) for VoLTE and VoWiFi is
live since October 2019. It was previously using Nokia and Oracle’s IMS and related
technology to offer 4G voice service. This is for the first time that an Indian product
has replaced European and American technologies. Eight billion calls per day and 4.5
billion SMSs per day are now handled on Jio’s own technologies - TAS, IPSMGW and
SMSC.
I strongly feel that Jio is 5G-ready to make India ready, Jio-rivals complain of financial
stress and last but not the least, adoption of 5G will boost the Digital economy and job
creation by telecom sector.

Q4. What are the pros and cons of O2O model for retail business in
India? Is this the best marketing/ operational strategy which Reliance
Jio can adopt, leveraging its collaboration with Facebook?
O2O Model – In O2O Business Model, entices consumers in an online environment
and then compels them to visit a retail location.
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

Yes, It is to believed that this is the best marketing/operational strategy which

Reliance Jio can adopt, leveraging its collaboration with Facebook
Via JioMart, RIL is offering local merchants offering an O2O (online-to-offline)
marketplace apart from taking the benefit from the Facebook customer base of 400
million. They will connect with local retailers and deliver goods to the customers by
procuring them from the nearest store located in the customer’s locality.

Sr.
S.No PROS CONS
i Through O2O Business Model, Jio can Customer won’t be able to
work on Zero Inventory Model. No negotiate or won’t get the
need to spend money on Complex product on credits.
Supply Chain Models

2. Smaller Shops gets wide number of In O2O business model.

prospective customers, thus giving Consumers cannot interact with
boost to their sales. the store owners during selecting
the products and making the
purchase.

3. Customers will be more comfortable in O2O business models involve

placing the order as they might have collecting and storing customer’s
Trust and rapport with Local Supplier. personal information like
Customers will get relief from long Que address and phone number,
at Kirana Store. there are data privacy concerns
that arise out of it

customers were required to access Jio Mart through a unique WhatsApp number on
their phones. In response, JioMart would send a link to the customer's WhatsApp
chat window, valid for 30 minutes. This link would direct the customer to a new page
wherein he/she had to fill his address and phone number, after which the catalogue
of products was made available to order from. Once the final order was placed, it
would be shared with the local Kirana store on WhatsApp. The customer would
receive a notification with the order and the Kirana store details on his number. The
customer would also receive an alert as soon as the Kirana store billed the order. The
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

customer would then pick up his/her order from the Kirana store and make payment
in cash. They will target middle-class families and will change their purchasing habit
The company aims at correcting the unorganized retail sector, benefiting local
shopkeepers whose businesses were being adversely affected due to competitive
pricing and warehousing strategies of other online retail stores. In addition to
increased sales and margins, these shopkeepers will be equipped with points of sale
(PoS) terminals, integrated billing applications, GST compliance, thereby easing
taxation and also upskilling them in inventory management and supply chain
management.
This way company would be able to tap the untapped Semi-Rural and Rural Segment
of India and can expand their user base and increase their overall revenue.

5. What do you understand by Net Neutrality? In the context of investment

made by Facebook in Jio Platforms, what is the likely impact of this duo
on net Neutrality?
Answer: The concept of “Net Neutrality” was coined in 2003 by a law professor from
the Columbia University, Tim Wu, in a paper regarding online discrimination which
got accepted widely. Net Neutrality is the principle that states - Internet Service
Providers (‘ISPs’) should treat all internet content equally and should not implement
discriminatory practises to hinder or quicken access to certain services or content. The
reasoning behind this principle is that internet should be an equal opportunity, equal
playing ground for all the players. The primary argument for net neutrality is that if
the ISPs give preferential treatment to certain content, then newer players in the
online market will have a difficult time competing for customers and this is in turn will
stifle innovation.
In the context of Facebook-Jio deal, Facebook investing a huge amount in Jio
platforms have made some observers curious that “Net Neutrality” issues might pop
up. It already happened once in India with Facebook’s Free Basics debacle, and
eventually TRAI had to force Facebook to withdraw Free Basics from India. There are
speculations that Jio might give preferential treatment to Facebook and its products
such as WhatsApp pay, by making it load faster than Gpay, Paytm,Phonepay or any
other competitive payment system in a Jio network, which will be a clear violation of
net neutrality. Yet, Jio has clearly not accepted such claims and has stated that Net
Neutrality will be respected.

6. What are the data privacy issues flagged in the case? How does the data
protection draft bill compare and contrast with GDPR adopted by EU
countries?
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020

Answer: The data privacy issues highlighted in the case are the following :
 Justice BN Sri Krishna has raised a red flag over the lack of a data regulator to
oversee privacy concerns emanating from Reliance Jio-Facebook deal.
 the vast amount of customer related data available with both companies (jointly
known as “data elephants” in the industry) would give both of them an unfair
competitive advantage.

Indian Data Protection Draft Bill (PDP) Vs GDPR adopted by EU

1. Territorial and material scope:
The GDPR does not govern anonymised data at all, while the PDP Bill allows
the government to access non personal data held by any DP or DF for specific
purposes under clause 91. Anonymization standards may differ between the
PDP Bill and the GDPR. Therefore, being GDPR compliant does not necessarily
make an entity compliant with the PDP Bill. Broader definition of SPD means
that entities in India will have to apply higher standards of data protection to
more categories of personal data in India, as compared to the GDPR. Entities
will have to be especially careful with their processing of ‘critical personal data’,
which has no parallel in the GDPR.
2. Data localisation and cross border data flows:
Entities will have to comply with stricter standards of data localization under
the PDP Bill, as compared to the GDPR. The conditions for cross border data
transfer may differ between the Data Protection Authority (“DPA”) and the
Supervisory Authority. Therefore, compliance with the GDPR may not result in
compliance with the PDP Bill, since transfers outside India will depend on
approvals/ permissions either by the DPA or the central government. However,
there are some overlaps between the GDPR and the PDP Bill (for instance,
intra-group schemes or the broad idea of adequacy).
3. Notice and consent:
Compliance with the GDPR is not equivalent to compliance with the PDP Bill’s
notice requirements. The PDP Bill offers relatively more clarity on the legal
consequences of consent withdrawal than what is provided by the GDPR.
Unlike the GDPR, the PDP Bill proposed a new type of entities for channelling
consent, i.e. ‘consent managers’.
4. Data processing principles and grounds for processing personal
data:
Under the GDPR, data can be retained for a longer time for
archiving/research/statistical purposes, whereas under the PDP Bill, data can
be retained for a longer time if explicitly consented to by the data principal or
to comply with any obligation under a law. The performance of contract is not
a ground under the PDP Bill, while it is a ground under GDPR. The PDP Bill
does not recognise ‘legitimate interests’ (as provided in the GDPR), but allows
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020
DFs to process data for ‘reasonable purposes’. However, unlike legitimate
interests that are determined by the DCs themselves, reasonable purposes will

be specified by the DPA. Thus, being compliant with the GDPR does not mean
automatic compliance with the PDP Bill.
5. Data processors:
The PDP Bill appears to be slightly more relaxed in the requirements for
contracts with DPs, unlike the GDPR, where the DPs have to give the DCs
sufficient guarantees that they will adhere to the GDPR. In practice, however,
pursuant to the PDP Bill, DPs may have to provide similar guarantees to DFs.
The GDPR empowers the European Commission to prescribe standard
contractual clauses for the agreement between the DCs and DPs. The PDP Bill
does not expressly provide for a similar measure with respect to the DPA.
6. Storage limitation:
Unlike the GDPR, the PDP Bill requires explicit consent of the data principal in
order to store data for a longer period of time than is necessary to satisfy the
purpose for which it is collected. Therefore, compliance with GDPR may not be
enough to ensure compliance with PDP Bill.
7. Grievance redressal and penalties:
The PDP Bill stipulates a time period of 30 days within which a grievance is to
be addressed. The GDPR does not prescribe such time period. Unlike the
GDPR, the PDP Bill states allows any person, as opposed to only a data
principal, to appeal to the appellate tribunal. The difference in amount between
the penalties imposed by the GDPR and the PDP Bill is significant.
8. Security and compliance:
In terms of privacy/data protection by design the PDP Bill and the GDPR are
broadly aligned, and both refer to similar concepts such as DPIAs, privacy by
design, and audits. There are, however, differences in approach. In the GDPR,
while all DCs have to undertake DPIAs and maintain records, under the PDP
Bill, only ‘significant DFs’ are required to do so. Further, the PDP Bill, allows
the DPA to notify regulations specifying the manner in which data auditors
should conduct their data audits, whereas the GDPR does not. Further, DFs
getting their policies certified under the PDP Bill will be eligible to participate
in the data sandbox. The GDPR does not propose a sandbox. The grounds for
determining if DPIA is necessary are wider under the GDPR. Further, the
information to be provided in the DPIA is narrower under the PDP Bill as
compared to the GDPR. Thus, complying with the GDPR may not be enough to
ensure compliance with the PDP Bill.
9. Breach notification:
The threshold to notify the breach are different in the GDPR and the PDP Bill.
In the GDPR, every breaches are to be notified to the supervisory authority,
unless the breach is unlikely to result in a risk to individuals. Under the PDP
Bill, breaches are to be notified the DPA if they are likely to cause harm to data
principals. Unlike the GDPR, under the PDP Bill, DFs have to notify data
principals only when required to do so by the DPA.
 Faculty : Mr. Surinder Batra
Term : 3
PGDM Executive 2019-20
Kunal Jalan
Roll : 190301009 Date : 12 th July 2020