Reliance Jio is a telecom operator and digital service provider under the parent company Reliance Industries Limited (RIL). The commercial rollout of Jio services was announced by
Mukesh Ambani, Chairman and Managing Director of RIL in September 2016. Touted to offer up to 80% cheaper data, its services are free for active Jio users until the end of 2016.
Jio tariff plans
During its unveiling, Mukesh Ambani announced that voice calling for all Jio users would be free for a lifetime. Its data plans are also devised keeping in mind affordability and alignment with the vision of a fully digital India. Priced at Rs. 50/GB, it is a steep drop from the industrial standards of Rs. 250/GB. By opting for Jio, mid-to-high-end users stand to reduce their data expenditure by 50-60% according to a report by CRISIL Research.
Students across the country stand to gain even more as Reliance Jio data packs will offer them 25% extra data. The company is also investing in one million Wi-Fi hotspots in India.
Additionally, the extensive range of smart phones falling under its LYF banner is also pocket-friendly and complement Jio 4G services. LYF smart phones have various sub-categories and start at a base price of Rs. 3,999.
Telecom sector in India
Reliance Jio’s entry in the market has already caused a disturbance as competitors lost about Rs. 13,000 crore when their respective market shares crashed.
Mukesh Ambani, during the AGM address, explained how Indian telecom players must co-operate in terms of interconnectivity of networks. Not only is this legally bound but also a choice offered to customers by all service providers in the form of MNP facility.
42nd Annual General Meeting of RIL
Mukesh Ambani addressed shareholders at RIL’s 42nd AGM by explaining how the private conglomerate plans to write history again. Elaborating on Reliance Jio’s tariff plans and overall vision, he stated that the ultimate aim is to transform the telecom industry’s revenue model.
Reliance Jio has been devised in order to function as a comprehensive digital ecosystem. It already provides smart devices, digital services, and content streaming platforms.
The 42nd AGM was extremely critical for RIL as two of its projects, namely, petcoke gasification and telecom go commercial this year. Worth $50 billion, RIL aims to de-risk its businesses.
Petcoke gasification
The project’s seeds were sown five years ago when RIL invested $12 billion in petrochemical projects. One of these is the creation of a petcoke-integrated gasification combined plant. Additionally, a refinery off-gas cracker would also be set up.
The aim is to complete this project by the first half of 2017. The refinery off-gas cracker will function by using the ‘off gases’ released by the refinery as feedstock and is aimed to be mechanically complete by December 2016.
Summary
Reliance Jio’s popularity is supplemented by its varied add-on offerings. The company is creating a unique space for itself in the Indian telecom sector.