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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