When you are in a war zone everything is at stake. The same is happening in the telecom space in India. The major shake-up was hurled with Reliance announcing its plan to enter the 4G market with its Reliance Jio Services. Since its inception, the Indian telecom giants are worried about the massive investment by the company in the field of data services. The present time is becoming a lucrative option to attract the data-savvy customers.
The beta version of the services was launched in December 2015 on the 83rd birth anniversary of late Dhirubhai Ambani, the founder of Reliance Industries. The commercial launch of the services was in the second half of 2016. It all began when Reliance Industries bought a 95% stake in Infotel Broadband Services Limited for Rs 4800 Cr.
Reliance Jio Services on Offer:
IBBL was the only firm to win broadband spectrum in all 22 zones in India in the 4G auction that took earlier that year. Later, Infotel Broadband Services Limited was renamed as Reliance Jo Infocom Limited (RJIL) in 2013. The expectation of the company is to invest $10 billion in its 4G services. The launch of its 4G broadband services is expected to be in the first quarter of 2016-17.
In addition to data, the company is also targeting to offer voice services with peripheral services. This includes instant messaging, movies on demand, live TV, news, live music streaming, and a digital payment platform as well. A composite of all the services will put the organisation in a better position to market its products and services in the market. Also, the consumers who are at present dependent on different services providers for different products or services can move to a more comprehensive package deal. This can be one good reason that analysts are expecting that Jio likely to gain 15% of subscribers in four years.
Competition in Telecommunication Industry:
As expected, the competition is also getting tougher for Reliance. Hearing the war trumpet there is a quite disruption in the market. As no telecom provider wants to lose its customers, even if they are marginalized ones, there has been a rain of offers from the giants in the telecommunication industry. The rate cards for the data services have been slashed by many providers. Be it reducing the prices for services or giving 10-50% extra buying capacity to the consumers, are some of the techniques being used to retain the customers. But will that really help the companies which will now see the consumers as a source of income only; as slashing prices is just one factor for binding the consumer.
If there is no improvement in the services then the chances of switching to the other service provider make more sense to end customer. This is true even though the switching costs are involved. The number portability has already made switching process quite easier. The emphasis has to be given more on the services rather than price point. This can be seen in the massive Airtel’s advertisement of ‘Airtel Open Network’ marketing stance where is purely emphasizing on the network only.
We at Craft Driven believe that such things are bound to happen whenever there is any disruptive thing happening in the market. It then depends on the stimulator and effector that how they read the market and market forces in order to compete with each other. At Craft driven we keep analysing the new trends in the industry and how they are creating an impact on the end customers. Our research topics provide insights to companies as well as consumers. This blog section will cover some trending topics and other information that we think will be of interest to our readers. Please share and provide your feedback so that we can improve on the same.
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