If you were not living under a rock for the past several months, chances are you would have already heard about Mukesh Ambani’s ambitious plan with regards to Reliance Jio.
As per their corporate website, “Reliance Jio is capable of offering a unique combination of telecom, high speed data, digital commerce, media and payment services.” It is considered to be a revolutionary service aiming to connect India, from the masses to the classes.
In this article we would take a closer look into Reliance Jio and analyse if Jio would be able to make a dent in the Indian 4G universe as it claims to be.
The Product:
Reliance Jio is riding on a growing segment of mobile internet users in India and the consequent 4G data wave that has swept the country. It already has an upper hand in the space being the only pan-India license holder of broadband wireless spectrum.
In addition, to stand out from its competitors, Jio is also being positioned as a “digital content company”. A Jio package will allow a subscriber to watch, for instance, five movies a month or watch a cricket match live without having to pay for the data download separately.
The Performance:
According to a Business Standard report, Credit Suisse telecom analysts who have tested Jio’s 4G network say they have experienced peak download speed of 70 Mbps during trials, and on most occasions in the 15-30 Mbps range (even on the move). Consumers using Jio’s 4G service will be able to make voice calls on VoLTE (voice over LTE).
The Price:
As per an ET Telecom report, Reliance Jio will also offer cheap MiFi device and 10 GB of data just for Rs. 700/-. And from what it seems, the recharges would be very competitive too. At the RIL annual general meeting in June, Mukesh Ambani had said the pricing of Rs.300-400 a month would buy adequate data on the Jio network for calling and Internet surfing, roughly a third of current market rates and a potential threat to leaders Bharti Airtel, Idea and Vodafone.
A few pertinent questions:
From what it seems, Reliance Jio is the most anticipated product of 2016 that is set to revolutionize digital India but there are a few questions left unanswered:
We are still struggling to get decent 3G speed and coverage even after its initial launch in 2008 by MTNL. Will Jio be able to support the 4G speed that it is providing in its test phase?
For the cost-conscious Indian consumer, price/MB matters. With higher speed, data consumption will be high and that means higher cost. Can the consumer afford?
Readiness of mobile devices for adopting 4G is another concern. When 3G was launched existing devices supported it, same is not true for 4G. Won’t this affect the adoption rate?
Can 4G compete with cable/FTTH/ADSL broadband in terms of price/MB?
How sound is a device-bundling strategy? Device + data plan bundling never worked in India. Cases in point: Android One and Reliance’s own CDMA phones.
Indian smartphone users are price/performance and brand conscious. Are they going to buy 15K device of some unknown brand when there are already better spec devices available for lesser price?
Reliance Jio is already way behind in its initially proposed launch date. Meanwhile, operators like Airtel, Vodafone and Idea are gradually rolling out their 4G services. Isn’t it too late for Jio?
Time can only tell the answers to these questions. Till then we are excited to watch out in whose favour the Indian 4G game plays out.
What do you think? Are you ready to give Reliance Jio a try? Let us know your thoughts in the comment section below.
CREDITS: THANKS TO RAVINDRA BHAT, SOFTWARE ENGINEER @IREFF
Source: iReff