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Is Reliance Jio Really Giving Free Services



Reliance Jio is acquiring users like bullet train. They are giving free voice and data access to user for free. We all know that Reliance Jio invested billions of $ in building world class network and acquiring relevant content to ensure that they build complete ecosystem.

They are offering movies, music, video and many more for free. Everything cost money and Reliance Jio is liable to pay .14 per minute termination fee to other operator for user voice call. It will cost Reliance Jio millions of $ and it raise question that how they are making money or sustaining.Reliance developed its own Application repository and ensuring that most of the user gets habitual of using it. We all know that Paytm is valued at $5bn having 160 million user. If Reliance money will be used by even 50 million user then as per the industry standard it's valuation will be around $1.5 Bn to $2Bn. In a similar way, they are promoting their other applications too. 

I am sure that post acquiring 50 to 75 mn userbase of Reliance jio owned application they will go for the separation of those application into separate entity and will bring in funding to monetize it.
Hence, we should not think that Reliance Jio is doing any favor or giving Happy new year offer instead of that they are using acquired userbase to  build an environment to create multiple subsidiary company within Reliance Jio.

Got the surprise. We as userbase are doing a favor to Reliance Jio instead of other way around.
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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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