MANAGING IT, DATA AND BUSINESS SYSTEMS

ASSIGNMENT

CIA 3
A Report submitted in partial fulfilment of the requirement for the degree of
Master of Business Administration

By

SHAGUN VERMA

REGISTER NUMBER

1827146

Under the Guidance of

PROF. LAXSHMI IYER

Institute of Management

CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

 INDEX
S. No Content Page no.

1. Introduction 1
2. Airtel vs Jio: Data Tussle 2
3. Broadband War 3-4
4. Return of Jio Phone 5
5. Conclusion 6
6. References 7
1. Introduction:

The mobile industry has been changing drastically for past few years now. The shift from 2G
mobile data technology to fast speed 4G and till FTTH home broadband services available at
every home. The change is big. In this Airtel is the biggest telecomm service provider. The
prices for the data plans offered were at a higher rates. But since the introduction of Reliance
Jio, it has become a major threat for Airtel. Jio came up with its sim available in the market
with free data services. Since then the tussle of providing the data services and holding on to
the major market share has not stopped yet. Airtel has continuously been trying to reduce the
prices and give more data usage to maintain that position. Jio after a certain time came with
data plans still cheaper than its competitors. Both the company are trying to gain more
customers now with diversifying their facilities by shifting the focus on home broadband till
mobile devices.

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2. Airtel vs Jio: Data Pack Tussle

Date: 15th June 2018

It has been two years, when Reliance Jio network entered the telecom sector with exciting
offers from unlimited calling, messaging and data. Before 2016, consumption of wireless data
network was never an affordable service for every citizen. The average consumption of data
was about 600 MB per month, or about 20 MB per day. Yet after the introduction of most
significant development in history of India, the wireless data users have been increased by
5times and price decreasing by 97%. Earlier, Airtel offered packages of Rs 99 with 1GB data
per day as Jio came with the offer of Rs 98 1GB. But with time, Jio started a scheme of Double
Dhamaka offering double data consumption by 2GB in Rs 98 plan, forcing Airtel to response.
There are other facilities also available with this plan of Airtel giving the benefit of unlimited
local calls and 100 sms per day as in total 2800 sms in a month. The Jio plan on the other hand
offers unlimited Volte calls but only 300 sms a month in total. The Airtel plan may look
attractive but this applies only to selected cities.

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3. Broadband War
Date: 5th July 2018

Customers of home broadband administrations can anticipate a bonanza of sorts in coming a

long time with Bharti Airtel prepared to take part in another value war once Reliance Jio
InfoComm dispatches its much anticipated fiber-to-the-home (FTTH) benefits in the not so
distant future. As the company entered the mobile data- telecom industry with its troublesome
duties in September 2016, the Mukesh Ambani-controlled 4G bearer is currently ready to rule
over again; this time in the home broadband administrations front by offering an appealing
combo of quick broadband network at introductory information paces of 100 Mbps, videos and
boundless voice calls through the Vo-IP (voice over web convention) course for around
Rs1,000-1,500 per month. Sunil Mittal-led Bharti Airtel is also revving up its countrywide
wired broadband amusement to mark up the level of Jio offers. The strategies used by No.1
teleco Jio is to probably invest sizeable lump of its Rs 24,000-crore capex direction for FY19
targeting at least 100 cities with 89-odd now and majorly with big data consumption regions.
In the begging they expect to gather 100 million plus user by FY21 adding 3-5 million new
home connections for next 3 consecutive years. Airtel on the other hand, is attempting to to
assemble a triumphant mix of offers at appealing rates to clutch their 2.5 million-in number
home broadband client base. The organization has offered discounts of 15% and 20% to clients
deciding on its home broadband packs (presenting to 300 Mbps speeds) for a half year and 1
year. It also offers the full service portfolio of ‘Home Platform’ which provides service of

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merging all the postpaid mobile and digital TV connections with their rapid home broadband
packs and solidify all bills into one. The expectations from Jio is to apply same strategy of
offering aggressive priced connections as it did earlier. This will be advantageous for the
telecom service providers as the number of users increase, the preference of them and the
market which will help in building up the plans accordingly. It will affect Airtel in reducing its
prices as well as increasing the size of wired broadband market. The overall revenue for Airtel
has already been reduced by 11% on-year to Rs 604.2 crore in the quarter ended March,
triggered by 12.6% on-year ARPU dilution. Customers will also be benefited from these new
options as the expectations of free services initially to attract customers just like in the
beginning of the Reliance Jio sim, they’re demand to get more data with higher speed at a
cheaper price will increase.

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4. Return of Jio Phone2

Date: 8th August 2018

Reliance Jio is ready to again take control of the market by now introducing sale on Jio Phone
2 on 15th August 2018 in India available via MyJio app and Jio.com. The launch was announced
in the month of July only during RIL’s AGM. The phone costs around Rs. 2999 with latest
features like a 2.40-inch display, 240 X 320 pixels resolution and 512MB of RAM. It has
internal storage of 4GB that can be expanded up to 128GB through microSD card. Jio Phone 2
has 2-megapixel primary camera on the rear and 0.3-megapixel front shooter for selfies.
Connectivity options like Wi-Fi, Bluetooth, NFC, GPS is also available. It runs on KAI OS
also known as Firefox OS. JioPhone, which was at that point furnished with Facebook, will
likewise now have in-assembled WhatsApp, YouTube and Google Maps. Reliance Jio is
offering the ‘Monsoon Hungama’ exchange offer for the existing Jio phone users to give
JioPhone 1 for just Rs 501 and one can exchange old feature phone (of any brand) for a
JioPhone at Rs 501. However, for this offer, the customer has to take Rs. 594 prepaid plans.
The users will get voice and benefits of six recharge packs worth Rs. 99 for six months. The
offer also provides chance to return back Rs. 501 at the end of three years under ‘Monsoon
Hungama’. The service is available at retail stores. Customers will get a new Jio SIM with the
JioPhone. This shows that however Jio is entering the market of telecomm already with great
prices, continued with home broadband services making it available at every level of
household. Taking the advantage of already high popularity of Jio telecomm in India, it is now
set to enter the mobile device industry as well. The Moto of providing the mobile devices at a
cheaper price is pleasing for the customers. Customers already trust build up with Jio is what
makes them buy the further products of Jio Phone 2. Airtel Karboon is still at the lower level
with lesser consumers in the market. As the introduction of Jio Phone 2 comes, it needs to
buckle up with the Karboon phones and increase the sales of it.

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5. Conclusion:

It can be concluded from the above observations that in case of mobile data, both the telecomm
service providers are ready to give more data at cheaper price, reducing overall prices of data
plan with unlimited calls and sms in the market. This impacts the revenue of these companies
but also increases the data usage by the customers. According to the sources, average
consumption per user in 4G broadband reaching 11 gigabyte per month in December 2017.
Everything related to a human being is being connected online. More than 3 billion people are
now using the Internet, according to the United Nations agency that oversees international
communications. The Reliance Jio directed the market’s customers by introducing home
broadband services also now at cheaper prices giving another competition to Airtel. Airtel
modified its plans accordingly combing all the services with ‘Home Platform’ facility
connecting mobile, digital TV and internet all together to keep up with the customers. Jio on
the other hand has now come back with Jio Phone 2 reviving up the mobile device market.
Airtel’s Karboon Company has been a major fail, but is planning to buckle up again. It shows
that both the competitors are using the tactics of surrounding the customers from every aspect.
The strategy of low pricing at the beginning of Jio has been successful yet. However the rise
in prices slowly and steadily will also include the rising prices of Airtel back. At the end, the
prices may not be the only factor that customers look for, better connectivity is also one of
major issue that these companies must look for.

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6. References
Airtel Rs 99 prepaid plan now offers 2GB data for 28 days, unlimited calls to compete with
Jio Rs 98 plan. (n.d.). Retrieved from
https://www.indiatoday.in/technology/news/story/airtel-rs-99-prepaid-plan-now-
offers-2gb-data-for-28-days-unlimited-calls-to-compete-with-jio-rs-98-plan-
1261828-2018-06-16
Bharti Airtel, Reliance Jio set for home broadband war. (2018, June 28). Retrieved from
https://economictimes.indiatimes.com/industry/telecom/telecom-news/bharti-
airtel-reliance-jio-set-for-home-broadband-war/articleshow/64769425.cms
Reliance JioPhone 2 to go on sale on August 15; check MyJio app and Jio.com. (2018,
August 9). Retrieved from http://www.zeebiz.com/technology/news-reliance-
jiophone-2-to-go-on-sale-on-august-15-check-myjio-app-and-jiocom-58727