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The Success Story of Jio- Making India the World's Largest Data Consumer


The logo of Jio
The logo of Jio (Picture credit: Wikimedia Commons


Welcome to Youth Motivator. I would like to tell you the very motivational success story of Jio and how Mukesh Ambani disrupted the whole telecom industry with his company Jio.

Jio took India to the number one position in the world in data consumption from its 150th position.
Now, India consumes more data than that of USA and China combined.
Jio now rules the Indian telecom industry.

Introduction-

Jio was born out of a dream of Mukesh Ambani, who longed to create a history in the telecom industry.
In the year 2005, the Reliance group was divided among the Ambani brothers.

The younger brother, Anil Ambani received Reliance communications, Reliance Power industries.
And the older brother, Mukesh Ambani got Reliance Petroleum, oil and gas industries.

But Mukesh Ambani had a great interest on communications network, so he fought in court over this division of Reliance industries.
And finally, after fighting in court for 5 long years, in the year 2010 Mukesh Ambani won the case.

The oxygen of the 21st century-

It is very clear that in the 21st century, data is the new oxygen.
Mukesh Ambani observed the data usage in developed countries and understood that the future of the telecom industry majorly lies in providing data services.

The disruptor-

During those times, even though the population of India was around 130 crores, out of them only 105 crore people had access to mobile connections, in them less than 10 per cent people were using data and 4G services.

So, Mukesh Ambani discovered a very huge opportunity in providing mobile data services to all these people, who previously did not have access to fast data at accessible prices.
On 5th September 2016 Jio was made accessible to general public.

Being different-

He focused mainly on providing data services unlike his competitors who focussed only on call services, ignoring the importance of data services.

Almost every other telecom company underestimated Jio; they were overconfident because they were in this business for long years. But within a few months, Jio changed the entire scenario.

This caused many other companies to experience losses, close down their business in India (Aircel, Telenor, etc.), or to merge with other telecom companies (Idea and Vodafone).
And the entry of Jio was very aggressive, it aimed to capture over 80 per cent of the Indian telecom market.

Very expensive-

Before the entry of Jio, the data was very expensive beyond any reason. And majority of the middle class would think twice even to download a small video, because of the fear of exhausting their expensive data plan.

But Jio entered the Indian market at the right time to change the face of internet forever.

Observing opportunity in a saturated market-

Jio is very different from the old telecom companies like Airtel, Vodafone and Idea.
For these companies, majority of their revenue is generated by providing voice calls service.

So, these three companies used to compete with each other in the voice calls category.

Failing to realise-

Other companies failed to realise the importance of mobile data, as a result they did not gave it the importance it deserved.
They competed in voice calls services only and did not care about providing affordable data services to the masses.

So, as a result Jio grew rapidly because other telecom companies did not pose any real challenge or competition to it, as the primary focus of other telecom companies were only on providing call services.

Even though these companies provided data services, they were way too expensive and had many restrictions like low speed, providing most of the benefits in the late hours of the day (for example, Airtel used to reduce their data costs to some extent around the midnight, the most unusual time of the day).

The vantage of Jio-

Jio had advantage over all the pre-existing telecomm companies, as Jio needed to focus only on 4G unlike its competitors who need to focus on old networks like 2G and 3G.

Also, other telecom companies had to spend huge amounts of money to upgrade their 2G and 3G networks but Jio is a much focussed business.

Investing heavily-

Jio employed newer technologies and invested a massive 2.5 lakh crores.
Mukesh Ambani invested such a huge amount because the Jio was launched in many places and the technology employed by Jio is also new.

This investment amount beats the combined investments of all the other telecom companies by a huge margin.
The money invested by Jio in developing its network is about 3 times greater than that of all the telecom companies.

A novel fiber optic technology was employed in the creation of Bay of Bengal Gateway.
These fiber optic cables were admitted in the pre-existing fiber optic network, which covers a distance of whopping 8040 kilometres, starting in Europe and ending in South-East Asia.

Jio utilized this fiber optic technology, by which it was able to provide data at very high speeds (at around 40 Tbps). The internet speed provided by Jio was ten times that of other telecom companies which relied on old technologies.

Now, Jio maintains the India’s biggest fiber network.

Connecting all parts of the country-

Jio network covered almost all the parts of the country; at that time it was the only company to have 4G spectrum in 22 zones in India.          

Other telecom companies covered only a very few handful zones in India.

Helping the society-

Jio has played an important role in the penetration of internet. This helped the rural economy immensely. 
Reed Hastings, the CEO of Netflix said that Jio has brought digital revolution in India and every country needs a company like Jio.

Jio won the hearts of billions of people by initially providing free data services to the general public for more than a period of six months.

This was a new breath of air, as they previously used to spend exorbitant amount of money on data.
By being very consumer-friendly, Jio grew and is continuing to grow at a very rapid pace, this envied other telecom companies.

Unnecessary accusations-

Now, the other telecom companies are accusing Jio in Courts and TRAI (Telecom Regulatory Authority of India) for creating monopoly.

How could benefiting general public and saving them from being exploited result in monopoly?
No doubt, Jio has created monopoly in telecom sector, but as a result of this monopoly, the lives of billions of people are getting uplifted. And ultimately, the consumer is the real winner.

The win-win strategy-

When compared to other telecom companies, Jio charged only for data services and provided other useful services like calls, SMS and roaming across the country for free of cost.

As a result, when their free offer got expired they readily paid money to further avail Jio services. As they experienced the good speedy internet with Jio, they did not want to migrate to any other network.

Initially, Jio used to provide up to eight SIM cards on a single Aadhaar card, that too for free of cost.
This idea was a run-away hit, as many people queued to get their hands on a Jio SIM.

As a result, they even bought new 4G phones.
Jio even launched their 4G mobile phone series by name LYF.
As they knew that buying a new 4G phone to use Jio costs less than that to use their existing mobiles with the other network operators.

As a result, many people across the country enjoyed high-speed data provided at zero cost by Jio.

Making profits is not the only thing-

The primary focus of Jio had not been to gain huge profits but was to gain as many consumers as possible.

This gift was even extended till March 2017 by the name Jio Happy New Year Offer.
Mouth publicity by general public also played a big role in the success of Jio. So as a result of this publicity, many new customers were added to Jio.

So, many abandoned their previous telecom network and moved to Jio network for good.
Jio has the highest consumer retention rate, as Jio began to charge it consumers very less than that of the competition, after the completion of its free data offer.

And Jio activated these SIM cars in negligible amount of time, by employing digital verification methods. At present, it captured over 20 per cent of Indian market.

The mass strategy-

Jio has always employed the mass strategy that is they charge less from more number of customers instead of charging more from less number of customers. This strategy of Jio is a massive hit.

This is the reason why they provided free services initially. By providing free services they attracted many customers.

As a result customers used to enjoy high speed data free of cost and consuming data heavily on a daily basis became their part of lives.

Making profits-

Now, Jio is running profitably thanks to it win-win strategy. Here, both Jio and its consumers are getting immensely benefited.
This was not an overnight success for Jio; the strategies were planned beforehand.

The turn-over of Jio greatly influences the net worth of Reliance industries.
By the way, Jio is the subsidiary of Reliance Industries, one of the India’s biggest companies.

This explains his huge investments in Jio; he wants the Jio to be the big part of the Reliance group.

Cutting with a double-edged sword-

Jio had a clear edge over all the other telecom companies because the other companies were struck in using old and expensive technologies.

Since, they invested huge amounts in those technologies they lazed to abandon out-dated technologies and embrace new technologies.

Also, if they entered by using new technologies, they have to face a very stiff competition by Jio, as Jio had captured a very huge market. Simply put together, any other company would not survive against Jio.

So, the other companies which were profit-centric were cut with a double-edged sword by a consumer-centric company, Jio. All these proceedings benefited the normal consumer, who before the entry of Jio was being exploited.

Will definitely become the market leader-

Even though, now Airtel has more customers than Jio, Jio would clearly overtake Airtel in the coming times.

Because Jio is focussing mainly on upcoming new technologies like 5G and is constantly striving to improve its current network.
Jio has invested much more money than that of all the telecom companies in India combined.

Be thankful to Jio-

Even if you use any other network apart from Jio, you must be thankful to Jio. Because of Jio, other telecom companies slashed their prices in a responsible way, because if they didn’t they had a very good chance to get extinct.

So, other telecom companies are focusing mainly on retaining their existing customers by offering some deals.

Like, for example Airtel has also brought a plan of providing free 4G VoLTE Lava, Intex or Micromax mobiles, if a customer uses Airtel network for a minimum of 2 years.
Jio caused digital revolution in India and played a pivotal role in increasing the internet adoption rate.

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