Muhammed Thayyib.

K, International Journal of Research in Management, Economics and Commerce,

ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 04, April 2018, Page 78-82

The Impact of Jio on Indian Telecom

Industry
Muhammed Thayyib. K
(Assistant Professor, Department of Management Studies, Mahatma Gandhi College, Iritty, Kannur, Kerala,
India)
Abstract: This Research paper reviews the impact of Jio (Telecommunication Company) on the telecom sector
in India. Paper highlights the introduction of the Jio on Indian telecom sector. The paper also mentions that the
various strategies adopted by jio on capturing advantage on other telecom service providers. It specifies that Jio
creates a revolution in the Indian telecommunication industry through providing various additional services to
its customers.
Keywords: 4G network, Volte, LTE mobile network, Strategies, impact

I. INTRODUCTION
After the globalization of India economy in 1991 the telecommunication sector remained one of the
most happening sectors in India. The recent years witnesses rapid and dramatic changes in the field of
telecommunications. In the last few years more and more companies both foreign, domestic, come into cellular
service, service market and offers large number of services to the people. Telecommunication industry is one of
the most emerging industry in the world. Currently India is the world second largest telecommunication market
and still going. Indian telecommunication market is an excellent opportunity for network providers. Recently
Reliance Jio has give a big jolt to Indian telecom sector.
Reliance JioInfocomm Limited announce the launch of it’s digital services with jio in Mumbai on 5 th
September 2016 with the permission of Telecom Regulatory Authority of India (TRAI). Jio provide a wireless
4G LTE service network to it’s customers at very low price. Jio announces that it had acquired 16 million
subscribers with in the first month of commercial operation and crossed 50 million subscribers in record 83
days. by October 2017 it had about 130 million subscribers.
Significance or Need of the Study
The launch of jio likely to transform the Indian telecommunication sector but at the same time it make
pressure on multiple fronts on the current telecom operators such as Airtel, Vodafone, Idea, BSNL etc. The
entrance of jio brought a stormy revelation in the telecom market. The current study investigates the impact of
jio in telecome sector and other market players.To study this references and data sources have been analysedand
over allimpact on market and customers taken in to consideration.
The Study seeks to achieve the following broad objectives:
1. To find the impact of Reliance Jio in Telecom sector
2. To analyse the effect of JIO network on other competitor
3. To analyse the competition of telecom industry in modern era.
Reliance Jio
Reliance JioInfocomm Limited or Jio is an LTE mobile network operator in India, lunched in
September 5,2016. It is a wholly owned subsidiary of Reliance Industries headquartered in Navi Mumbai,
Maharashtra, that provides wireless 4G LTE service network (without 2G/3G-based services) and is the only
'VoLTE-only' (voice over LTE) operator in the country which lacks legacy network support of 2G and 3G, with
coverage across all 22 telecom circles in India. Reliance JioInfocomm Limited (RJIO), a subsidiary of Reliance
Industries Limited(RIL),India’s largest private sector company. Jio is the first telecom operator to hold pan India
unified license. Jio announces that it had aquire 16 million subscribers with in the first month of commercial
operation. Jio continues to be the fastest growing company in the world, by October 2017 it had about 130
million subscribers.
History
Jio's headquarters in RCP, Navi Mumbai.In June 2010, Reliance Industries (RIL) bought a 96% stake
in Infotel Broadband Services Limited (IBSL) for ₹4,800cr. Although unlisted, IBSL was the only firm to win
broadband spectrum in all 22 zones in India in the 4G auction that took place earlier that year. Later continuing
as RIL's telecom subsidiary, Infotel Broadband Services Limited was renamed as Reliance JioInfocomm
Limited (RJIL) in January 2013.
In June 2015, Jio announced that it will start its operations all over the country by the end of 2015.
However, four months later in October 2015, the company's spokesmen sent out a press release stating that the
launch was postponed to the first quarter of the financial year 2016-2017.

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Muhammed Thayyib. K, International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 04, April 2018, Page 78-82

Later in July, a PIL filed in the Supreme Court by an NGO called the Centre for Public Interest
Litigation, through PrashantBhushan, challenged the grant of pan-India licence to Jio by the Government of
India. The PIL also alleged that Jio was allowed to provide voice telephony along with its 4G data service, by
paying an additional fees of just ₹165.8 crore (US$25 million) which was arbitrary and unreasonable, and
contributed to a loss of ₹2,284.2 crore (US$340 million) to the exchequer.
The Indian Department of Telecom (DoT), however, refuted all of CAG's claims. In its statement, DoT
explained that the rules for 3G and BWA spectrum didn't restrict BWA winners from providing voice telephony.
As a result, the PIL was revoked, and the accusations were dismissed.
Beta launch
The 4G services were launched internally to Jio's partners, its staff and their families on 27 December
2015. Bollywood actor Shah Rukh Khan, who is also the brand ambassador of Jio, kickstarted the launch event
which took place in Reliance Corporate Park in Navi Mumbai, along with celebrities like musician A R
Rahman, actors RanbirKapoor and Javed Jaffrey, and filmmaker RajkumarHirani. The closed event was
witnessed by more than 35000 RIL employees some of whom were virtually connected from around 1000
locations including Dallas in the US.
Commercial launch
The company commercially launched its services on 5 September 2016. Within the first month of
commercial operations, Jio announced that it had acquired 16 million subscribers. This is the fastest ramp-up by
any mobile network operator anywhere in the world. Jio crossed 50 million subscriber mark in 83 days since its
launch. Jio crossed 100 million subscribers on 22 February 2017.
Jio welcome offer
The Jio Welcome Offer provides an opportunity to every Indian to learn, try, customise and experience
high quality digital services, without paying for the services up to 31 December, 2016 after which the applicable
tariffs will apply. The Company also proposes to use this time period to fine-tune its services as well as for
resolution of interconnection and MNP related issues that it has faced with several other operators. As a part of
jio welcome offer , users will have access to unlimited LTE data and national voice, video, and messaging along
with the full bouquet of jio applications and content, free up to 31 December 2016
Products and Services
4G Broadband
The company launched its 4G broadband services throughout India on September 2016. It was slated to
release in December 2015 after some reports said that the company was waiting to receive final permits from the
government. MukeshAmbani, owner of Reliance Industries Limited (RIL) whose Reliance Jio is the telecom
subsidiary, had unveiled details of Jio's fourth-generation (4G) services on 12 June 2015 at RIL's 41st annual
general meeting. It offers data and voice services with peripheral services like instant messaging, live TV,
movies on demand, news, streaming music, and a digital payments platform.
The company has a network of more than 250,000 km of fiber optic cables in the country, over which it
will be partnering with local cable operators to get broader connectivity for its broadband services.With its
multi-service operator (MSO) licence, Jio will also serve as a TV channel distributor and will offer television-
on-demand on its network.
LYF Smartphones
In June 2015, Jio tied up with domestic handset maker Intex to supply 4G handsets enabled with voice
over LTE (VoLTE) feature. Through this, it plans to offer 4G voice calling besides rolling out high-speed
Internet services using a fiber network, in addition to the 4G wireless network. However, in October 2015, Jio
announced that it would be launching its own mobile handset brand named LYF.
On 25 January 2016, the company launched its LYF smartphone series starting with Water 1, through
its chain of electronic retail outlets, Reliance Retail. Three more handset models have been released so far,
namely Water 2, Earth 1, and Flame 1.
JionetWiFi
Prior to its pan-India launch of 4G data and telephony services, Jio has started providing free Wi-Fi
hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat, and Visakhapatnam in
Andhra Pradesh,Indore, Jabalpur, Dewas and UjjaininMadhya Pradesh, select locations of Mumbai in
Maharashtra, Kolkata in West Bengal, Lucknow in Uttar Pradesh, Bhubaneswar in Odisha,Mussoorie in
Uttarakhand, Collectorate's Office in Meerut, and at MG Road in Vijayawada among others.
In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums hosting the
2016 ICC World Twenty20 matches. Jionet was made available in Wankhede Stadium (Mumbai), Punjab
Cricket Association IS Bindra Stadium (Mohali), Himachal Pradesh Cricket Association Stadium
(Dharamshala), Chinnaswamy Stadium (Bengaluru), Feroz Shah Kotla (Delhi), and Eden Gardens (Kolkata) in
India.

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Muhammed Thayyib. K, International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08 Issue 04, April 2018, Page 78-82

Jio apps
In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its upcoming 4G
services. While the apps are available to download for everyone, a user will require a JioSIM card to use them.
Additionally, most of the apps are in beta phase. Following is a list of the apps:
 MyJio - Manage Jio Account and Digital Services associated with it
 JioTV - A live TV channel service
 JioCinema - An online HD video library
 JioChat Messenger - An instant messaging app
 JioMusic - A music player
 Jio4GVoice (earlier JioJoin) - A VoLTE phone simulator
 JioMags - E-reader for magazines
 JioXpressNews - A news and magazine aggregator
 JioSecurity - Security app
 JioDrive - Cloud-based backup tool
 JioMoney Wallet - An online payments/wallet app
 JioSwitch - Transfer content
 Jiofi -Wireless router
Technology
 Reliance JioInfocomm is currently laying OFC across the country to offer Fiber to the home/premises
(FTTH). This fiber backbone will also help them to carry huge amount of data originated from their 4G
network as well as public Wi-Fi network.
 Reliance Jio is deploying LTE-TDD technology for 2.3 GHz spectrum band, acquired in 2010.
 Reliance Jio will deploy LTE-FDD for 1.8 GHz spectrum, which will ultimately paved to roll out of
LTE-A network aggregation of both technology and both spectrum band.
 At present in different cities of India Reliance Jio offers Wi-Fi services. Most of these cities are in
Gujarat, where Reliance Industries also have one of the largest petro-refinery.
 Once commercially launched, Jio users can have access to Reliance Communications’ 2G & 3G
network.
Mission
Reliance’s mission is:
 To provide the best and most value-adding advice within investor relations, financial communications,
media relations, crisis communications, issues management and CSR reporting
 To be an independent sparring-partner and to provide excellent advice for our clients in connection
with IPOs, ECM and M&A transactions, corporate governance-related issues as well as in connection
with preparations of contingency communications plans regarding public takeovers
 Reliance’s activities shall be of benefit for both our clients, collaboration partners, employees and
shareholders
Vision
Reliance’s vision is:
 To be our clients’ ’first call’ and preferred collaboration partner within our business areas
 To consistently exceed our clients’ expectations for professional and value-adding advice
 Our objective is long-standing and trustful client relationships created via excellent advice and service
Values
We are governed by our fundamental values:
 Quality: We do not compromise – we have a passion for the best quality
 Innovation: We are innovative and wish to enthuse our clients
 Ambition: We set high objectives and push to achieve the best results
 Honesty: We are honest towards our clients, also when it may be unpleasant
 Integrity: We keep our word, guard confidentiality, and maintain a high level of integrity
Branding and marketing
On December 24, 2015, Bollywood actor Shah Rukh Khan was appointed as Jio's brand ambassador.
Jio's market strategy
Jio's marketing strategy is based on five pillars:
 Having the best broadband network – This includes having a high-speed, all-IP network with broad
national coverage and substantial network capacity based on spectrum holdings. To augment the LTE
network, Jio has deployed Wi-Fi hotspots.

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 Affordable 4G smartphone and wireless IP devices – Under the company's LYF brand, Jio has
introduced LTE smartphones with prices starting at around $45. The company also sells an LTE router
for around $30.
 Compelling applications and content – Jio offers its subscribers an application library and content
consisting of chat and OTT (over-the-top) voice apps, digital wallet, music, OTT TV, and cloud
storage. Content includes a library of 6,000 HD movies, 60,000 music videos, and more than 10 million
songs. Jio's OTT TV service offers access to more than 300 live TV channels, of which 40 are high
definition (HD).
 Superior customer service – For its initial launch, Jio created a sign-up process that reduces customer
onboarding time to a few minutes. Jio rolled out an electronic know-your-customer (eKYC) solution, a
paperless way to fulfill KYC requirements, in more than 200,000 outlets across India. For customers
looking to sign up directly on a phone, there is an app called MyJio, which can also be used to check
service balances and to pay for service. Compared to existing industry practice usually taking a few
days to activate a new line subscription, this is a significant improvement
 Affordable and simple tariffs – As discussed earlier, Jio charges only for data, while voice services are
free. Data services have been made far more affordable with proposed rates at a substantial discount to
prevailing industry tariffs. Jio has also simplified tariff plans and made them customer friendly.
Tariff Plans
The Company filed its detailed tariff plans with TRAI .ShriAmbani enumerated the following
principles used for formulating the tariff plans:
 Benefits of technology would be passed onto customers. All domestic voice calls for Jio customers will
be absolutely free, across India and at any time. Domestic roaming charges will not apply in Jio tariffs.
 Data tariffs have been made highly affordable, with full transparency, without any associated
conditions. The Company is offering the lowest LTE data rates in the world. Additionally it would
offer unlimited night time LTE data.
 The Jio-Apps bouquet, which is worth Rs. 15,000 for an annual subscription, will be available
complimentary for all active Jio customers up to 31 December 2017. This has been done to make
Digital Life available to everyone.
 A special student discount offer, with 25% more data on the main tariff plans, would be offered to all
students.
 Jio has introduced a simple tariff structure with only 10 main plans, designed to fit every budget, as
against the 22,000 tariff plans prevailing in the country today.
Impact of Jio on other industry
For studying the impact of jio on Indian telecom sector, some academicians conducted a survey on the
dealers of sim cards. They selected some samples for their study. Through that study, they measured how much
impact created by jio on other telecom operators.
The study mainly focussed only those dealers who have more than 5 years experience in telecom
market. Most of the dealers agree that the customers mainly approaching for their shop for data recharge. Most
of the dealers agree that approximately 5 to 10 new sim cards sell in every day. They also mention the IDEA
sim card is mostly selling sim card before the advent of jio.
Now after the advent of jio, market changing. All the dealers start the selling of jio sim cards. Most of
the dealers have excellent and good opinion regarding the service of jio. Now after the launch of jio, all the
dealers are mostly selling the jio sim cards rather than any other sim cards. Besides that most of the dealers
recommending to customers for purchasing jio. Most of the dealers are agree that customers look for new offers
and schemes while selecting sim cards. So irrespective of all other cards, Jio providing more offers and
schemes. So they are selecting jio.
Now the main impact created by jio on other companies is that reduction of sale of other sim cards. The
dealers undoubtfully specify that advent of jio decreases the sale of all other companies sim cards. We already
specify that Idea is most selling sim card before the advent of jio. Now after that jio passes all companies and
captured their market.
Another important thing that most of the dealers confirms that customers of jio are highly satisfied.
Through their offers, schemes and services, customers are highly satisfied.
Another impact is that jio increases the sale of 4G phones. This creates a huge boom in mobile phone
or cellular industry. All other companies are trying to produce different modes of 4G phone and introduce in the
market.
So through this study we can confirm that jio makes a huge impact in Indian telecom market. Jio is
negatively affected the marketing of other network providers while customer get huge benefit from jio.

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II. CONCLUSION
The launch of jio likely to transform the Indian telecommunication sector but at the same time it make
pressure on multiple fronts on the current telecom operators such as Airtel, Vodafone, Idea, BSNL etc. The
entrance of jio brought a stormy revelution in the telecom market. The current study investigates the impact of
jio in telecome sector and other market players. Jio will attract low quality customer who jump to other
networks one the freebies end. But reliance doesn't believe so.it is offering free 4G data. Which means it will
occupy primary sim slot in the 4G smart phones. Also, customer will switch to jio from their broadband services
and possibly will stick to it even after the promotion period ends. in addition to that,it offering free calling
services .so it is aware people will be using the number of calling purposes for the next three months. Three
month is sufficient time to span for people to experience the super fast speed quality services and permanently
transfer to the network. So within 3 months of it's commercial launch jio would have acquired more than 50%
market share.
Limitations of the Study
 A detailed survey is required for collecting the information about the current aspects in telecom sector.
So it is too difficult to collect the whole information
 It is not easy to collect information from all over the country like india because of its wide area.
 The study consumes more time and expensive.
Directions for Future Research
The present study is restricted to the network of sim card dealers in the small areas in kerala. The
researchers can direct their future research in all the states in india. The scope of the present study is restricted to
the impact of jio on Indian telecome sector. But in future researchers can make study on what are the strategies
adopted by other telecom companies for competing with jio.The researcher can take more samples and make
study in detailed manner in future.
Sources of Funding of the Study
→Self financed by the author

III. REFERENCES
[1] An academic project report on the impact of jio- Shabeer.N.P
[2] A training project report on customer satisfaction towards Reliance Jio- Rajan darlami
[3] WWW.JIO.Com
[4] Telecom industry in india by “India Brand Equity Foundation”
[5] An overview of Indian telecom industry by Prashant Singhal

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