3 Immediate challenges for Reliance Jio
Reliance Industries Limited CEO and India’s richest man Mukesh Ambani’s 45 minutes speech at his company’s AGM discussing about Reliance Jio entry plans wiped out more than $2 billion in market value of two of the listed rival companies in the Telecom industry. With promises like Free Voice, super-affordable data tariff plans and an 'unlimited-everything’ welcome offer, the 20-Billion-Dollar startup has already made the correct sounds among the consumer groups and India Inc.
As the service goes Live on September 5 for all users, here are few short term challenges the company will have to face.
- VOLTE compatibility: Most existing smartphone users in India still do no have VOLTE enabled phones, which is essential for Jio sim. For Jio to reach out to these customers and conversely for these customers to avail maximum benefit in the Free Welcome Period offer, it will be important for them to upgrade to VOLTE phones as soon as possible.
- Internetwork Calling & Portability: Jio's powerful entry in digital business has inflicted its competitors so much that they have resorted to call blocks for Jio sim users. Restricting Mobile Number Portability (MNP) might add to Jio's woes. Such activities are bound to attract TRAI penalties and customer complaints but the old foes might well risk that to buy in more time.
- Only Data Revenue: Telecom companies have always had two prime sources of revenue: Voice and Data. With the evolution of VOLTE (Voice over LTE), cost for providing voice service is almost negligible. With nationwide LTE network, Jio will leverage its infrastructure to provide a free-voice pricing to its customers. This means only data will drive revenue for the company. And by providing an ecosystem of allied apps and digital services, Jio has already laid a bait.
Jio’s entry has been nothing less than revolutionary. One may ask for how long will other companies ‘Jio’ in this business. For the consumer though, times are good.