A for Apple, B for Bat, C for Cat, J for disruption.
If you are thinking why not D for disruption. Think again. J for Jio and Jio has become the new synonym for disruption. Mukesh Ambani led Reliance Jio repeated the storm which left other players bereft just like September last year.
During the launch of Jio 4G feature phone, which is also the cheapest device to support LTE in the world, the estimated loss registered by other telecom players due to the loss of confidence among their shareholders is pegged at a whopping amount of 2300 crores.
The losses of all major telecom companies were even reflected in this year’s Union budget as it showed a 44 per cent dip in revenues from the sector in the financial year 2017-18 to Rs 44,342 crore.
It may seem incorrect at a time when everyone can be seen glued to their smart phones, but the fact is that even today, only one in three users can afford a smartphone in our country which is one of the world’s largest telecom markets. With this in consideration, one can assume the level of splash this move has created in the ocean of the telecom market.
In a single stroke, Jio has conquered (or will conquer) every 2G phone user of the country and every two of three phone user in our country is a feature phone user. So, this roughly means that Jio will very soon conquer 66 per cent phone user market easily and the figure could well cross 80 per cent mark if other players of the sector fail to chalk out with a counter move.
The ripples will not just end in the telecom sector but will shake up the DTH service providers as well. The newly launched Jio 4G feature phone can also be connected to television sets and one can stream videos for at least 2-3 hours per day on Jio TV. Now think of four members’ middle-class family with everyone having a Jio feature phone. They can collectively stream videos for almost 8-10 hours every day. Why will this family not watch videos through Jio feature phone and avoid spending 350 bucks for a TV recharge every month? Take another instance, think of a working couple living in an urban town who gets just a few hours after day’s work to watch TV. Will they not opt for Jio TV through feature phone?
I am sure you can keep on multiplying like instances. Thus, the obvious inference will be high (really high) losses of other DTH service providers.
If you have read this far, you might think this article to be a paid one or PR driven but factually, the freebies offered by Jio is so well fabricated plan to dominate the Indian market that finding a loophole is as tough as solving a Jigsaw puzzle. Who would not want to buy a phone that is virtually free? The feature phone user of today will turn into a data addict with negligible monthly investment and no expenditure on buying a new handset. Summing up, it can be said that Jio has struck the right chord yet again.
The feature phone user of today will turn into a data addict with negligible monthly investment and no expenditure on buying a new handset. Summing up, it can be said that Jio has struck the right chord yet again.
Summing up, it can be said that Jio has struck the right chord yet again.