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Reliance Jio Free Data And Voice Plan - Promise Vs Reality

Reliance jio with fanfare launched their 4G service and claimed that they have invested $25 billion using natural oil money. During launch respect chairman of Reliance Industry Mr. Mukesh Ambani claimed that it will generate millions of jobs. In order to achieve 100 million user to get their business unit valuation higher, Reliance jio extended their free service till March 2017 even though they are incurring ' 000 crore cost.

Their intentions were simple and that was to disrupt market completely which eventually force competitors  to get out of business. With Q3 result all competitor showed that their voice and data collection went down by 15 to 30% and ARPU went down drastically. Interestingly, Mukesh Ambani called it's baby project as revolutionary service and termed it data oil during his NASSCOM meet.

In my point of view, the data oil should be replaced with firing oil. Most of the competitor incurred lower revenue and profitability whereas Idea went into red. Who lost it??  It's government and employee of the competitor companies. It is expected that Indian Telecom sector will lose around half a million jobs directly and indirectly and don't think that Reliance Jio is going to give them the job.

I want to ask Mr Mukesh Ambani about his promise of generating millions of jobs but in my point of view, his organization strategy is going to increase unemployment which is against the vision of current government. I also want to request Telecom ministry that how they can be silent when they are losing billions of $ as tax and revenue share. Isn't it weird.
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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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