Reliance Jio has its plan chalked out. It is here to stay, in the long run. And to achieve its ambitious target of capturing half of the mobile-telephony market share in India, the Mukesh-Ambani led venture will bank on data instead of voice.
The aggressive price penetration policy of Reliance Jio achieved what years of policy making couldn’t; competition and consolidation in the mobile telephony market space in India.
Some analysts averred that the Jio craze will fade away after March 31, 2017 when the company starts charging for its services. The ground reality states a different story though. Reliance Jio has been consistently eating into the market share of other behemoths like Airtel and Vodafone.
Going purely by numbers, seven new customers have been joining the Jio network every second since September 5, 2016. Jio’s plan is to continue the frontal attack and that does not bode well for the other telecom players in the country.
What is Reliance Jio eyeing? 50% market share by 20201. That is indeed phenomenal, considering that Airtel, the market leader, has 33% revenue market share.
The platform on which Jio will play is ‘Data’. “Industry growth was low in last 5 years, next 5 years to see rapid growth with data explosion,” Reliance Jio said in an issued statement.
After Reliance Jio gains an unmatchable toehold in the data telephony, it will shift focus to fibre to the home (FTTH) segment.
“Apart from mobile data, we see fibre to the home (FTTH) as a key revenue driver for Jio. We expect management focus to shift to FTTH post successful commercial roll out of the mobile network,” read the statement.