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Reliance Jio Claim vs. Reality Check

Honourable Chairman of Reliance Industries, Mr. Mukesh Ambani during launch of Reliance jio 4G service, dedicated it to 1.2 Bn citizens. Mr. Ambani was full of praise of its network but more aggressive about his billions of $ investment in Reliance Jio network. He claimed that Reliance Jio 4G service will create millions of jobs for Indian citizens as well as his intention is to connect the unconnected digital user. Reliance Jio opted strategy to offer more than one SIM under one Aadhar card and promoted it like it's a free meal party going on.

Even though service availability require Reliance Jio to invest billions of $ by taking debt and its debt level is too high. By giving the free services, Reliance Jio forced the competitors to reduce the calling and data plan and failed to recognise that it's competitors are not sitting on Oil money. Now Reliance Jio Free service started showing its impact on other incumbent mobile service provider. In most recent quarterly report Idea announced loss for the first time post IPO.Vodafone parent company is trying to make bigger collaboration with Idea cellular to ward off competition. Today Tata Teleservices also showed an interest to get their company merged with Reliance, Aircel and MTS.

The moment consolidation start to happen within Telecom sector would lead to thousand of Jobs and what will happen to those family who are dependent single earner. Mr.Ambani, Government loss billions of $ just because incumbent operators failed to achieve the growth given multiple reasons.Mr.Ambani more than half a million staff will be affected and you said that you will create job opportunities. The continuation of Mr.Ambani free voice and data plan indicates that Mr. Ambani wants to throw few competitor before defining the price points. Isn't it surprising that, on one side he is  committed to offer digital life.
I would like to ask few queries when it comes to country
1.What you want to achieve by offering Free SIM 
2.What is your business model; dump money in Oil well and make others black
3.How many unique user do you have as your organisation offered multiple SIM under Single Identity.
4.Who is paying for your vision; Are you investing it or its the investor of Reliance Industries
5.Given the current state of Indian Telecom sector; Do you think that Jio is helping in evolving digital life
6.What is stopping you to charge from User. Is it fear of loosing user base or intention to throw out competitor
7. Do you know the number of potential job losses because of Jio Free service
8.Do you think that Jio free service is helping Government exchequer 

I'm my point of view,Reliance Jio aim is  to attract user base without thinking of losses. Last but most important question  that how it is profitable business for them and how it is going to hurt Reliance investor. Mr. Ambani,you failed to fulfill your commitment to 1.2 billion Citizens but initiated price war which may lead to millions of job losses and loss to exchequer. What a great strategy of killing competition. 
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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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