Company profileReliance Communications owns and operates the world's largest

next generation IP enabled connectivity infrastructure which comprises 280,000 kilometres of fibre optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

Reliance Group ranks among India's top private sector business houses in terms of net worth.

The Company has a good customer base.Reliance covers over 21,000 cities and towns and over 400,000

villages.(india) Reliance Jio is in process to set-up the 4G LTE infrastructure .

RJIL is setting up reliable (4th generation) high speed internet connectivity, rich communication services and various digital services on pan India basis in key domains such as education, healthcare, security, financial services, government citizen interfaces and entertainment.

Reliance jio’s visionReliance’s vision for India is that broadband and digital services will no longer be a luxury item ,Rather convert it into a basic necessity that can be consumed in abundance by consumers and small businesses .The initiatives are truly aligned with the Government of India's ‘Digital India’ vision for our nation. Digital HealthcareAffordable DevicesJio DriveDigital EducationDigital CurrencyDigital Entertainment and social connectivity

Ambani's 45-minute speech cost Bharti, Idea Rs 11,983 crore 

Scenario in the Market Share Price movement: Shares of Bharti Airtel dropped 6.37 per cent to settle at Rs 310.70 on BSE. Idea Cellular plunged 10.48 per cent

to Rs 83.70, while RCom slid 8.81 per cent to Rs 49.15. Within 45 minutes of Mukesh Ambani Reliance AGM, Bharti lost Rs 12,000 crore in market capitalization, while Idea Cellular eroded Rs 2,800 crore in market value. However, at close, the combined losses amounted to Rs 11,983 crore. 

“So The Question Comes : What is the business model of Reliance Jio?”

Everything Jio have done till now is intended at making money. Their tariff plans may look unbelievably awesome, but they will make more money by giving free voice calls than what the other companies make by charging you for it!

In India, the monthly average revenue per user (ARPU) the current network providers get is around Rs 150 per month. That is the money they get on average from each user. If you spend over Rs250 per month, you are considered a high-value customer.

Reliance Jio 4G services will be open for everyone to avail from September 5. Offerings : - 4G Data at such cheap rates - unlimited voice calls (local/STD) free - unlimited

4G data at night.However, there is still a lot of confusion in the market how they are offering 4G data at such

cheap rates? And how are they providing unlimited voice calls (local/STD) free to every JIO customer ? How are they offering unlimited 4G data at night?

It is really simple. Most of you are going to pay the same or probably more money to Jio compared to your current network provider.

After reading this small presentation you will realize what a clever businessman Mukesh Ambani is.

However, Reliance’s Jio has caused a ripple in the market forcing many rival telecom operators to slash their prices for call and data rates.

Reliance’s Jio has caused a ripple in the market forcing many rival telecom operators to slash their prices for call and data rates.

Which plan would you choose? If you are a voice-only kind of person, then you would be okay with the Rs 149 per 28 days plan, as you will get free unlimited voice calls.

But, even though you are not explicitly paying for voice, you are already paying over Rs 150 per month, thus their ARPU will by default be as good as the current players.

Criteria :4G Cell/Data Supportive Connectivity If you are someone who uses over Rs 150 worth of voice calls every month then it is a totally awesome plan for you. But, the point is that

other telecom companies make about Rs 150 per month on average from each user by charging for voice, SMS, data, and roaming. Jio will be making the same/more amount of money on average from each user even after providing SMS, roaming and voice-calls for free, by just pricing things differently.

Also, notice that all these plans are for 28 days which can easily be perceived as ‘a month’ by most people. If we divide the number of days in a year with 28, we will realize that we are paying for 13 ‘billable months’ in a year. (365/28=13.03)

What does 1GB cost ? If we exclude the unlimited night data and the WIFI data which many of us may not have access to, then the price per GB of these plans will

be 0.3GB for Rs149 = ~Rs 497/GB (Will anyone choose this for data ????)

4GB for Rs 499 = ~Rs 125/GB = 499/4 = 124.75 (125) :: 125*4= 500 :: 1GB >12510GB for Rs 999= ~Rs 100/GB= 999/10 = 100 :: 100*10= 1000 (999) ::1GB > 10020GB for Rs 1499= ~Rs75/GB35GB for Rs 2499= ~Rs71/GB60GB for Rs3999= ~Rs66/GB75GB for Rs 4999= ~Rs66/GB

Did you see that even their highest plans don’t go as low as their advertised Rs 50/GB rate?

How can they provide unlimited night data?Once you have built an entire network infrastructure, it really doesn’t cost anything for the network provider to

give you internet data.

The reason why most internet providers limit your data is basically because they do not have enough bandwidth to handle so many data. In the case of Jio, they have already laid an awesome fiber optic network which is designed to even handle the 5G and 6G. So, they do not have much of the data bandwidth problem.

How can they provide unlimited free voice calls?Again, Jio has an IP network, so all voice calls will go through the internet just like skype or WhatsApp. There is

not really any point in charging for voice anymore. It is an outdated system and there shouldn’t really be any surprise in why Jio totally abandoned it.

If hypothetically, Jio had the tariff for voice calls, then some company similar to WhatsApp would have launched an app through which you can do a free voice call over the internet (infact, WhatsApp itself has a voice-call option). Once everyone has a good internet connection, people would anyway use such services to make their calls. (So He didn’t allow his competitor to compete for this option)

Q. What do you think should Reliance 4G offer to customer which other service providers are not offering?

better con-nectivity

better scheme others no answer better network coverage

Better after sales service

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So Question Comes ::: Is this good?As a customer, you will get 2x to 3x more value for your money, yet Jio will make as much profit as existing

telecoms by pricing things differently.

When their apps, devices, and fiber services are added up, they are here to win multiple business verticals. And, at the current stage, they are almost unstoppable.

Yes, we need companies like Reliance to make such bold moves and invest in India. This is good for everyone. It is a win-win situation. It will increase the progress rate in India and will improve our quality of life. It will also give much-needed jobs to millions of people.

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