Jio Telecom Market Case Study

Mukesh Ambani signs Rs 13980 Cr 5G deal with Nokia!

After launching 4G phone at Rs 999, he's now full focused to capture whole telecom market.

Here is Jio's compete 5G roadmap:

1. 1. As it planned to invest $25 billion in 5G infrastructure, it paid $11 billion to acquire 5G spectrum last year.
2. Rest is set to be invested in network assets and equipment in next 4 years.
3. 2. Banks like HSBC, J.P. Morgan, and Citi have backed it’s bold 5G expansion with a $4 billion loan.
4. 3. It invested $2.1 billion in 5G equipment from Ericsson before Nokia deal.

On other hand, airtel holds fewer 5G base stations because of its non-standalone mode for its 5G rollout.

It also recently raised entry-level taxes for 2G users by 57%.

As Jio and Airtel both saw flat ARPU (Average Revenue per User) growth last quarter, Jio is now going all in to boost it.

Here are 5 ways Jio is building sole monopoly in India’s telecom sector:

1. Cheap 4G phone: With launch of India’s most affordable 4G phone, Jio is eating 40% share of 250 million 2G subscribers of Airtel and Vodafone Idea. - It's started selling its new phone for “2G Free India.” - It's beating brands like Nokia and itel and offering 7X data in plans at 30% lower price than others. If it converts 100 million 2G users to 4G, it’ll have Rs 1230 Cr of revenue every month.
2. Superior 5G: Ambani ensured Jio to be freed of its existing 4G network and make it a superior 5G. It's better for applications such as network slicing, loT, and mobile broadband coverage.
3. 1st Mover Advantage: As Vodafone Idea, Airtel and BSNL delayed 5G roll out, Jio took advantage and grabbed 80% of total 2.75 Lakh 5G stations in India.
4. 4. Extra Data:It's provided extra data for data hungry users which are priced at Rs 219 (14 days), Rs 399 (28 days) and Rs 999 (84 days). These provide up to 40 GB more data with access to JioCinema, JioTV and JioCloud.
5. Partnerships: After Karbonn, Micromax, Lava and other firms are set to partner with Jio to manufacture internet-enabled feature phones.

Jio is now set to pilot 1 million Jio Bharat phones from today at 6500 areas to tap into the rural market.

On other end, Jio is attracting potential subscribers through its 5G offers. Jio has already rolled out 5G to 60 million customers in 6000+ cities and targets to finish all India expansion before 2024. It’s bullish in building a monopoly as an only holder of 5G airwaves in 700 MHz band.

PS- As Jio is dominating the telecom industry with 38% share and 433.2 million users, it's also to changing lives of Indians.

Can Jio force a monopoly in the telecom sector by beating Airtel?

Do you think Jio Bharat can disrupt the 2G market?