Reliance Jio was launched in 2007, but its prime brand Reliance Jio 4G services were inaugurated on 27th December 2015, and soon it became the biggest telecom service in Indian subcontinent, Jio crossed 355 million subscribers in FY 2019. The huge LTE mobile network operator Reliance Jio Infocomm Limited is a wholly owned subsidiary of Reliance Industries. It is the only “Volte” company in the country that provides 4G networks without any 2G or 3G network support. Since Jio has entered the telecom market, it has kept on growing. Low costs and offers have attracted customers all over the country in bulks. Giants like Airtel, Vodafone and Idea which were the most prevalent brand in telecom market had suffered huge losses on the arrival of Jio and recently many telecom brands had announced mergers and a very low cash flow statement. On the other hand, due to a large consumer base in some Jio had also failed to manage their services in some areas.
Positive changes in Indian telecom sector
- With Jio coming into play, the data costs and the call costs has reduced drastically. This is one of the primary reasons for attracting millions of customers in just a few months.
- After the introduction of Jio, other telecom companies too had to reduce tariffs and had to think ways to improve efficiency. This is a big plus to telecom industry as well as consumers.
- As Jio services support 4G networks only, the demand for 4G enabled smart phones has also increased. According to data by IDC and Morgan Stanley Research, 95% of the smart phones sold in the country in the first quarter after Jio launch were 4G-capable.
- India saw an exponential rise in the consumption of online data after Jio launch. Statistics says that India consumes over 100 crore GB of data each month with video streaming of 165 crore hours per month. Voice calls for over 250 crore minutes each day are also recorded. Jio has claimed that Facebook and Google have added over 70 million users since the Jio launch.
Not so positive changes in Indian telecom sector
- The telecom industry had been facing huge debts of around 4.5 trillion rupees yet it continues to carry a debt of around 3 trillion rupees.
- All other telecoms like Airtel, Vodafone incurred losses because of Jio. Many telecoms had to look for mergers or search for new ways to push up their customers strength but had failed.
- In spite of the widespread of Jio connections, and free access of internet, illiteracy continues to be high in our country.
- In rural and village or remote areas of the country, the 4G connectivity has not reached yet. Those people are still deprived of the Jio-facilities.
- The launch of Jio phones can also be a tremor for the mobile manufacturer industries. They might be facing huge losses.
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