The news of the launch of the new telecom service provider JIO came in as a huge blow to the major giants of the industry. JIO offered ‘launch scheme’ which gave its customers free usage of all the services, which was supposed to be provided till 31st December 2016 and was further extended to 31st March 2017.
At its launch, Mr. Mukesh Ambani (Chairman of Reliance Industries limited) announced the features and plans of the new JIO network starting from ?50/- only. The big announcement was that JIO wouldn’t charge for voice calling throughout.
The launch of JIO, alone made Airtel and Idea loose the market cap of ?12250 crores (approx). The aggressive pricing of JIO plans raised many questions and many saw the bad days coming for other giants in the industry.
Reliance JIO may look to disrupt some of the prominent geographies of the existing operators, leading to redistribution of the market share, which is dominated, by Airtel, Vodafone and Idea.
Reliance JIO’s launch has definitely disrupted the telecom sector with its amazing data plans, communication technology and software business through ownership aggregation and delivery. But can India’s largest start-up manage hundreds of millions of customer accounts and navigate emerging business models of software content?
The answer to this ?1.5 trillion question can only be answered by time, as JIO is growing at a rapid rate and was one of the fastest telecom provider to touch the 5 million customers mark.
By Nimit Shah
Image source : Tech2