RELIANCE JIO – ABRUPTION IN TELECOM SECTOR SUBMITTED BY- GROUP 5 PGDM(GEN)- B KUMAR AKASH MANSI BHATIA MIHIR GUPTA MRINAL KUMAR TANYA CHATURVEDI

INTRODUCTION Launched on 5th September 2016 Occasion : on the eve of 83rd birth anniversary of late Dhirubhai Ambani, founder of Reliance Industries. Services : wireless 4G LTE service network.

PRODUCTS & SERVICES OFFERED BY JIO 4G Feature phone – JioPhone 4G Broadband LYF Smartphones Jionet Wifi JioFi SERVICES My Jio Jio TV Jio Cinema Jio Chat messenger Jio music Jio 4G voice Jio max Jio net Jio security and others.

BETA LAUNCH V/S COMMERCIAL LAUNCH Launched initially for partners, staff and families. on 27th December 2015. Commercial launch Launched for general public. On 5th September 2016. 16 million subscribers within first month of launch. Crossed 100 million subscribers on 22nd February 2017.

JIO PRIME Introductory fees of ₹99 Continue reaping benefits of unlimited offers Validity lasts for one year after which you have to recharge again for ₹ 99 Makes you the member of JIO Family

JIO V/S AIRTEL Ambani amassed 72 million customers in 4 months. Airtel - Largest market share holds – 25.03% However it is funding its debt by selling shares in Bharti Infratel limited worth ₹2570cr

JIO V/S VODAFONE Vodafone offering 4G data plans as low as ₹19 per day Encountered 10.2% fall in operating profits Offering cheap deals to compete with Jio Now offering internet at prices as low as ₹6 per hour

JIO V/S IDEA Encountered a loss during the Jan-Mar quarter of ₹ 328cr Revenues declined by 6.2% i.e. ₹816cr Approached telecom disputes settlement and appellate tribunal to file a complaint against free services

EFFECT OF JIO ON TELECOM SECTOR Contribution of telecom sector declined to 1.2% in FY 2017 Industry at its weakest because of its financial leverage Return ratios for the telecom players has also consistently declined In future, the industry will see slower investments and more consolidation 11 per cent expected revenue CAGR over the next 5 years The government might need to step in to improve the industry profitability to ease the exit of players and solve the structural debt issue.