Atrump Games

Atrump Games
Atrump Games

Is Reliance Jio Service going to trigger Millions of job losses in India ?

In one of the recent interview, Reliance Jio Chairman shared Reliance Group vision and showed his commitment towards Indian Telecom growth story.
On the surface of his statement, I was very excited but on deep diving analysis showed me completely different result.
Reliance Jio came out with disruptive model to acquire user wherein they are pumping in oil money in acquiring userbase. It interrupted the whole Telecom market which in turn will impact the ARPU of Indian incumbent Mobile Operators in big way during Q4, FY 17. The stagnated growth in Telecom sector coupled with very heavy debt on Telecom companies which is going to impact the growth story.
My takes are the followings
1. Disruption in revenue generations                      
2. Low EBITA margin
3. Difficulty Servicing debt level.
4. Difficulty in investing funds on improving network which will impact quality of services to excellence
5. Low profitability
6. As we all know that most of the Mobile service providers are  offering millions of jobs directly & indirectly
7. That is going to lead lower profitability and will force incumbent to go for realignment of business.
8. Millions of jobs will be lost across Telecom ecosystems
9. Reliance may generate millions of jobs but cannot fulfill the loses others will be incurring                      
In my point of view, Reliance jio came out with fantastic services but somehow it will trigger recession which will be initiated by Reliance Jio disruptive mode

Reliance Jio Revenue Model -Value Added Service & Mobile Advertisement

Share on Google Plus

About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
    Blogger Comment
    Facebook Comment


Post a Comment