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What is the User Acquisition Calculation Methodology Adopted by Reliance Jio ?

Reliance Jio 4G service Launch in India is in news across all geographies for all good news. They claim that they have the best network, best pricing, best content and now they claimed that they acquired 16 million user within first 30 days of service launch. Some of the analyst also predicted that Reliance Jio acquisition rate is still very high and may surprise the industry with overwhelming user acquisition.

I must congratulate Reliance Jio team for their fabulous Go To Market strategy to mitigate any competitor threat and be a trend setter. Reliance Jio in early Oct 2016 announced that during Sept 2016, Reliance Jio acquired 16 million userbase which is nothing but global record.

At the same time, COAI also came out with new user acquisition by its member mobile service providers excluding Reliance Jio and confirmed that Sept 2016, new user acquisition stands more little over 4.5 Million with biggest gainer is Airtel.

It raise question mark on user acquisition methodology. Since we are aware about the user acquisition methodology implemented by Incumbent operator whereas don't have the clue about the Reliance Jio methodology.

Based on the channel check as well as reports, Reliance Jio allow one Aadhar card holder to buy maximum of  9 SIM & users are rushing to buy the same. The only criteria is that user should have 9 different device in order to activate those SIM which is registered under single Aadhar card. Honestly, the approach is beyond my understanding given the fact that each mobile operators focus on VLR active user base instead of total user base.

I would like to ask two queries from Reliance Jio

  • Are you considering Single Aadhar card as Unique user and that means Reliance Jio added 16 million unique Aadhar card ? Is my understanding Correct. If yes then it's fabulous achievement but my assessment is differ from my own query to Reliance Jio.
  • Are you considering SIM as Unique User? In that scenario, the whole number game of Reliance Jio donot carry any value

In my raised query number 1, Reliance Jio is not considering Unique Aadhar card as unique user. In my previous articles, I mentioned that Indian wireless userbase already touched 1 Bn and India is place where more than 20% of population live under poverty and cant afford even feature phone. Basis COAI number, It is clear that incumbent Mobile operator added net 4.5 plus million user and that indicate that masses are not moving to Reliance Jio using MNP.

In my raised query number 2, Reliance must be using unique SIM is unique user and that is in my point of view carry many gaps. In that scenario, Reliance Must have acquired around 3 to 4 Million user base and rest will be having double SIM. I categorically mentioned in previous article that most of the users are buying Reliance Jio SIM as trial to check the quality and not surrendering the existing SIM. Given the fact that One MNP is already in place in India and most of the user already tagged their mobile number with banking to other service and are not comfortable in surrendering their existing number as it increase number of processes across different service Indian citizen avail these day.

In my point of view, Reliance Jio must clarify the above pointer's to gain more confidence from broader group of people following Reliance Jio

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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.
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