The owners of telecom companies have sleepless nights after the launch of Reliance Jio. The battlefield was set a while ago when the telecom companies started a rigorous campaigning of the 4G spectrums. Each company was trying to prove that their 4G products are the best in the market, but on 5th of September 2016 Reliance Jio started its welcome offer and disrupted the market by just one blow. It promises to transform Indian telecom market into the lower priced market in the world.
So the welcome offer was like this
— Manish Chaudhary (@manishmaan14) September 14, 2016
Welcome offer is an introductory offer to new and existing Jio user to avail nationwide free HD voice calls to any network, high-speed data, access to more than six thousand movies and three hundred live TV channels, more than one crore songs and more.
The customer’s response was tremendous
From the beginning of Jio’s launch, it stormed the market like a Tsunami. In this introductory offer, the consumer will get free calls to any network till 31st December 2016, and nobody wanted to miss out the deal. People stood in a long queue outside Reliance digital express to avail Jio SIM card, and it seemed like a ration line. According to a report, after 50,000-SIM distributions in Mumbai circle the company blocked the delivery to activate the already purchased SIM cards.
Reliance Share got a boost, and the competitor suffered a substantial loss
The launch of Jio SIM was the nationwide phenomenon, and its effect could be seen in the share market as well. RIL shareholders earned Rs.20000 crores in just two weeks, and the stock hit its 52 weeks high. On the other hand, the sufferer of Jio launch, i.e., the competitors like Bharti Airtel, Idea, and RCom (run by Anil Ambani) incurred a huge loss. As reported by Business Standard, these three companies lost their Rs.22522 crores of market capitalization after the launch of Reliance Jio.
So, has a new price war just begun?
Reliance Jio, BSNL sign intra-circle roaming pact | Latest News & Updates at Daily News & Analysis … pic.twitter.com/235FXXUZU7
— Anki (@ankitrawatt) September 13, 2016
Yes, it seems like, the telecom companies started reducing their 4G prices and came forward with discount offers. To counter the Reliance move, Bharti Airtel reduced its 4G and 3G mobile Internet tariff by 80 percent. The customer has to recharge with Rs.1498, and they will get 1GB 4G data. After exhaustion of this data, the customer will get 4G or 3G data in just Rs.51 over a period of 12 months on any number of recharges.
Will Reliance Jio be a game changer in the Indian telecom market?
It will be too early to say that the reliance Jio will be a game changer. As we know, the RCom when launched has also started the free schemes like Jio but on a long run, it lagged behind the ace telecom companies like Vodafone and Airtel. The bigwigs of the business world are observing the advent of Jio as a revolution, but it has to perform on the platform. Bharti’s Chairperson Suni Mittal has complained to TRAI on the predatory pricing of Jio.
The massive call-dropping phenomenon has already become the cause of Reliance Jio’s worry. No matter where this competition leads to but one thing is sure that the customer will always have a win-win situation.