Reliance Jio – What Do They Are Up to ? Our Analysis

Reliance JIO Infocomm Logo_bigReliance Jio Infocomm, the telecom arm of Mukesh Ambani headed Reliance Industries is leaving no stone untouched to roll out 4G services to usher a new age of technology in the country. The company have been tied knot even with its competitors like Bharti Airtel, Vodafone, Reliance Communications on different matters.

Jio has made deal with RCom for their inter-city OFCN, intra-city OFCN and 45000+ towers. They will use Viom Networks42000+ towers across the country. They even made deal with arch rival Airtel to share their infrastructure – including inter & intra- city optical fiber network, submarine cables (i2i network), towers (of Bharti Infratel) and more. The company, on the international level is a part of the Bay of Bengal gateway cable system that connects Middle East, South Asia, Europe and South-East Asia under the sea. While the company continues the effort to lay OFC across cities of their own the balanced strategy of creating infrastructure to deliver next generation data connectivity seems to be in the perfect path for Jio.

While Reliance Jio is busy to make more deals with other players we can assume the strategy and future plans of the company.

Reliance jio Voice strategy

Though Jio has won spectrum on 1800MHz band in 14 circles, I don’t think at the beginning they will come up with traditional voice services as they don’t have fallback 2G/3G network. Only way it would be possible if there is another deal with RCom or Airtel to use their 2G/3G GSM or CDMA network. VoLTE is yet to mature, but will Jio take the chance to introduce at the start?  Jio can operate as MVNO over Reliance Communications, but I think all the major moves regarding the launch will be live as soon as new government forms in the center.

VoIP services and OTT services may be a breather for Jio’s initial customers, as Facebook is offering free voice calling also. There are chances that Jio may have their own OTT/VoIP services, powered by Nimbuzz or something else.

Reliance Jio Data-focused plans

It’s almost sure that Jio will target the data as major source of revenue. What I think is they will launch 4G services using LTE-TDD on 2300MHz band initially, and later LTE-FDD on 1800MHz band. At the same time they will keep launching WiFi services to reach existing smart device users.

Unlike Airtel, Jio is making its availability in small towns also, where demand is high. In these zones, Jio’ 4G can bring technological revolution.

Wholesale Data & Bandwidth Seller – More partnerships to follow

Apart from retail data to end customers, Reliance Jio will try its best to become wholesale data and bandwidth seller to other companies including small internet service providers. Jio will offer them sharing the infra (more specifically optic fiber network or cable network), Jio will sell them domestic and international data and bandwidth. Jio will set up more data centers in the country to handle this much of traffic. I don’t see Jio to become FTTH service provider in next 2-3 years, but with so many fiber access they may enter into FTTH services – which will bundle many services under one hood.

I believe there will be some drastic changes in government policies including local-loop-unbundling of BSNL’s existing infrastructure and BSNL and MTNL’s partial or complete privatization. Whatever it goes, Jio will definitely get the advantages of it.

Reliance Jio WiFi – to reach existing smart phone users

Like in Gujarat, Jio will introduce WiFi services in other metros and cities of the country. It will help them to hook existing smart phone or tablet users on their ultra high-speed data services. Definitely they will launch Hotspot v2.0, so that people can easily roam across WiFi networks, easily switch from WiFi to cellular and vice versa.

An initial launch of free public WiFi will also give them a glimpse of usage pattern of different users before the actual launch of Jio 4G.

Monetizing from WiFi is a complex thing, and if Jio offers free 1GB-5GB over WiFi depending upon customers’ usage and more at a low price it will be useful for users.

Technology – Dual Mode LTE, CA-LTE, LTE Multicast, Hotspot 2.0, Cloud, Apps

Jio will use several technology which are relatively newer – dual-mode LTE (both LTE-TD on 2300MHz and LTE-FDD on 1800MHz), carrier aggregation (a part of LTE-Advanced), LTE multicast (broadcast of one event to several customers in a wide area), Hotspot 2.0 (enables global WiFi Roaming, smart switching to WiFi from cellular & vice versa).

Cloud services, which is yet to be popularized in India, will take a roll on the broadband. Anil Ambani headed RCom’s subsidiary, Global Cloud Xchange, earlier known as Reliance Globalcom focuses on delivering the world’s first true cloud ecosystem, in addition to network infrastructure and data center capability enhancements. There are high chances that Jio may tie up with RCom.

Apps will play an important role to increase data demand. Reliance Jio may have their own App store as well as own branded devices.

TV, Security, e-Learning, e-Medicine & other e-Services

Like in Verizon in United States, Jio will try offer triple play service – internet, phone and TV. Jio will have several portfolio under its offerings – TV, sercurity products, e-Eduacation, e-Medicine to bring the country into digital highway.

Reliance Jio Handsets 

Jio will definitely bring their own range of smartphones, tablets, routers and dongles which will support their LTE-TDD network. A 4G smartphone worth Rs 6,000 will break the barrier. A dual support of LTE TD and LTE FDD will be a must in next 1 year or less.

Reliance Jio Retail Presence

RIL has its strong retail presence across the country. Apart from Jio 4G’s kisoks to be available in major locations, Jio will use its own Reliance Digital chain to introduce 4G/LTE to new products to end customers. They can use RCom’s branded stores also to reach maximum. RIL has its own brand, ReConnect under which several smart devices are sold.

Reliance Jio’s Tariff

This will be the most tricky part. If Jio does note make ultra cheap tariff for new customers, people will not go for it. Jio is on the news for very long time and mostly because of its low tariff entry hype, people are just waiting for it. This is Jio competes with itself to keep the promises. Existing users of 3G, EVDO or local ISPs will have to replan their strategy to counteract Jio’s entry.

As a reader what do you think ? Can Reliance Jio Make any difference in Indian Voice and Data Market do let us know your views in comments.

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  • kunal - mumbai February 16, 2015 8:43 pm

    I feel ril jio is going to completely change india’s digital story….and going by a favourable Govt at the centre. ..It going to b rocking

  • Krishna singh June 29, 2014 8:23 pm

    Is their is big impact on small ISPs ?

  • Avi June 9, 2014 2:39 am

    I really hope R Jio Brings what all of the people waiting here at India.. a Truly unlimited Broadband /4G experience Which is not Backed by supid FUP.. with reasonable Price.

    Rock on Mr Mukesh Ambani…

  • Wincy Thomas April 21, 2014 2:17 pm

    Even though Reliance Jio will not have a first mover advantage when it comes to 4G LTE, it will be able to differentiate itself from Airtel by providing good data speed. Airtel did start its LTE services initially with Speeds upto 52 MBPS which was later capped to upto 10MBPS. What a waste of LTE technology and customer’s money.

    So entry of RJ will definitely make a huge impact on the current market share. Airtel and Vodafone are definitely going to lose its customer base.

  • D JAISANKAR April 19, 2014 6:00 pm

    Waiting for Reliance jio…

  • Jyotirmoy Manna April 19, 2014 1:48 pm

    Waiting for jio.

  • B. RAJASEKARAN April 15, 2014 11:09 pm

    I think the FTTH services of the Jio may hit Broad Band Business of BSNL very much.

  • B. RAJASEKARAN April 15, 2014 11:06 pm

    Yes, every one wait for Jio’s entry eagarly. I expect that entry of Jio will once again trigger heavy price war in the Telecom Industry, by the way 1.2 billion Indians will be benefited. Without cheap price NO one can penetrate the market even with better technology.

  • Sudar April 15, 2014 7:05 am

    I Could see reliance Jio towers even in small towns and rural areas of the country. Unlike all other operators who don’t even have 2G data (max
    20-40 kpbs) and make money in the name of 3G from public.

  • Darshan April 14, 2014 10:49 pm

    From few days even Vodafone 3g is going pathentic in mumbai,what is the problem is 3g network is going very weak like was getting 4 or full bars in 3g but it has gone down to 1 bar also even on Vodafone 3g network H it shows for sometime and it goes to E….I dont understand why Vodafone has done this were it has maximum customers….customer care says to select network manually and they think I am a fool to not know it…After repeatly saying they took my complaint but yet no solution…and the feeling of hatred created when vodafone didnot reply to my mail since 26hrs (still waiting for it)…
    Frustated by it all hopes on Jio
    to atleast provide good coverage in metro atleast…bcuz reliance cdma coverage is too much good in mumbai atleast.
    Vodafone if reading this please provide some solution I ported my 5 year old idea number to yours but feeling I made a big mistake…

    • imahesh April 15, 2014 2:28 am

      If you high speed data services in Mumbai go for CDMA because GSM 3G plan and network not good

    • samrat April 15, 2014 7:36 am

      Totally agree with you darshan. Well am frm delhi & using Vodafone on note 3. Believe me fr d last two months or so they hv drastically reduced their 3g speed. Don’t knw whether tht is intentionally or some network related problems. However I highly doubt tht there r sum technical problems. Nw a days am getting 0.95 to 1.56mbps max speed on 3g in delhi. Its so annoying. Earlier I was getting 9 to 13 mbps according to my speed test. I think Vodafone has degraded its 3g services or jst encouraging us to opt fr 4g. Really pissed off with VODAFONE. Am sure there will be some conspiracy behind this. Evn d 3g network fluctuates nw a days frm 0 to full. . I hope Vodafone is listening.

    • Aditya Mishra April 15, 2014 9:06 am

      I agree with you Darshan. I have faced this issue with Vodafone Airtel and mtnl. Its bad that these companies cannot provide a consistent speed in an metro city. So now I am using Airtel 2g data. I am from Mumbai too.

    • idea88 April 15, 2014 11:07 am

      @Darshan, if u dnt mind i wil tell u to go on twitter n write ur concern on Vodafone Twitter acct. n share ur view here if ur problem once solved. Thanks. @all Reliance jio will have so many stargies to tap the market. and what about aircel ??? yes, aircel using Green level stergy to tap market. it is below ARPU than leading operators, but they earning 100-120 p.m. by offering low data pack . So others operator’s feeling that aircel in debt but slowly growing. it earning from where markt dont grow.

      • Darshan April 15, 2014 12:37 pm

        Finally they replied to my mail after 32 hrs stating that some BTS work is going near my area so I am facing the problem
        It will get resolved in 72hrs hope they do it

  • Wired pls April 14, 2014 9:51 pm

    The article does not speak even a word on wired fiber broadband (FTTH) *facepalm*
    Not that article has any flaw, but its jio making huge mistake by not launching wired broadband. This is what “the basic” means of internet. Until this is matured, there’s no use of lte/5G/xG

  • Vinod, (Khatima) Uttarakhand April 14, 2014 8:40 pm

    Reliance Jio licence not available for up-west circle.

  • SS April 14, 2014 5:51 pm

    BSNL’s network is the least optimised network of india and smart phone user must know that. I experience that during call or data usage the device becomes too hot and the network drops from 5 bar to 1 even when tower is 200 m away.

  • idea88 April 14, 2014 5:32 pm

    @mayank Bharti airtel license expiring in AP,HP,punjab, North east by dec 15. and Karnataka-feb 16 an Rajasthan- April 16. idea -guj, MP, KERLA,MAHARASTRA, UP WEST, AP By dec 15 and Karnataka, Punjab by April 16. Rcom- Assam,mp,hp,bihar, northeast, west bengal by dec 15 and Vodafone- Kerala ., TN(except chennai), Harayana, Rajasthan, up east, Maharashtra, Gujarat b dec 15.

  • Ganesh April 14, 2014 5:30 pm

    I strongly believe it’s going to be only a hype. I will wait and watch what happens. Though Jio is doing all the right things, if the price isn’t competitive, it will be very hard to earn new customers. 4G speeds should be maintained and it should NOT be throttled. Also it’s price per GB has to be equal or lesser than Rs. 50. That is 10GB should cost Rs. 500. But 100 GB shouldn’t cost 5000, instead Rs. 2000.

    • Souradip April 14, 2014 10:02 pm

      Rs 50 or less for 1 GB are gone mad that to for 4G it could happen but i dont thik so because where AVOID provide 1gb of 2g at 155 & in some cirle 3g is at around 150 for 1gb so how could u imagine cost of a Gb of 4g at 50 or less.

      Some other company like videocon povide 1 gb of 2g in 96 in MP (dont know about unior and mts)

      I am not saying u alone but those who think 50 or less for a gb of 4g think again.

      If jio offer such thing it is only for a limited time.

    • Ajith M April 16, 2014 10:39 am

      I am from Thiruvananthapuram, Kerala, currently here MTS offering good service, 40GB High speed (i get Avg. speed of 4mbps (speed varies between 2 – 6 mbps) ) at only 999 ie, Rs. 25/- GB so if i need to port out from mts to Reliance JIO they must provide say Rs. 10/- GB or less and good coverage 🙂

      • Stevie G August 5, 2014 1:02 pm

        any update?

  • Mayank Bajaj April 14, 2014 4:12 pm

    An offtopic question.
    As we know that license of AVOID and Rcom is expring in 2015-16 in many circles and there is going to be a 2G auction later this year. At that time Jio may try to buy some spectrum in the remaining circles where it still doesn’t have 1800MHz. Even Uninor which is now wholly owned by Telenor may try to expand to other circles. This may lead to huge spectrum shortage for AVOID and debt ridden RCom. Does this mean that we may see these operators disappearing from certain circles???
    Someone please do reply.

    • Chetan April 14, 2014 5:32 pm

      Nothing will happen to AVOID. They will not be mute spectator in the next round of spectrum, they will also buy huge spectrum as business needs to safe guarded in existing circle. Yes JIo will buy spectrum in remaining circles and complete entire india. BUT Jio focus would be entirely on DATA and not voice like MTS.
      AVOID trajectory will also shift slowly(Already shifting) towards Data and current dominance of 70% revenue from Voice will shift to Data as OTT players will come and will consume Internet bandwidth to transmit voice.
      Docomo, Aircel, MTS, Videocon will be thing of past and there will be only 5-6 Data and voice player.
      RCOM might be bought by Jio or may disappear in distant future.

    • SS April 14, 2014 5:47 pm

      Look at the last auction. Spectrum was very less and bidders were many. Still all of the AVOID group retained spectrum. So what makes you think that in other way. They loot us and where do think the money goes? They are the richest of india and i don’t think that any indian company can challenge them for another 10 years. Sad but true.

      • Mayank Bajaj April 14, 2014 6:22 pm

        Yaa but i am mainly concerned about RCom, they are already in huge debt.
        Can they handle more??
        It wud be a shame to see them disappear.

      • samrat April 14, 2014 9:24 pm

        +1 Definitely agree with you ss. Not many people will knw tht ur smartphone battery back up will depend on how ur network provider has optimised for it. Well am using reliance gsm having 3g plan n network on my optimus g in delhi. I hv to say tht my phone becomes vry hot in a short span of time n d battery gets drained vry quickly. Leave it surfing d net.. it makes my phone damn hot n d signal constantly fluctuating. I think Airtel has optimised their network for 3g very well compared to other operators. WORST ARE RELIANCE & BSNL.

        • SS April 14, 2014 9:35 pm


          airtel has the best smartphone network.

  • sukhdeep April 14, 2014 2:53 pm

    It wont affect anything. It is just like a drum makes lot of noise but hollow inside. Reliance Jio will be Reliance Dead in few days.

  • Anu April 14, 2014 2:53 pm

    reliance jio
    sure it will be flop show
    non reachable to mango people

  • sujay April 14, 2014 2:43 pm

    we dont think so, if lnternet can devolop india.. there will be a politics.. if there is politics there will be no devolopments… however we indians, always want a good internet service at lowest price… should we expect better than others from you rim jio??

  • Nayan kolkata April 14, 2014 1:51 pm

    When R jio launch in kolkata????

  • Mahesh April 14, 2014 1:30 pm

    India strongly require following features. I don’t know technically how you describe it.
    => T-Mobile has a service which allows voice calls over your internal wifi network if there is no coverage inside the premises.
    => A strong 3G/4G network. Lack of it causes our device batteries to drain quickly. Sometimes, they don’t last even a full day
    => Wifi hotspot services, which will eventually reduce the load on 3G/4G, and help the battery last longer

    Now about your points, If Jio will provide better 3G/4G coverage than existing operators (Trust me, our existing operator provides third class services compared to mobile operators in developed countries), they will definitely win the market

    When I am in Bangkok or Hongkong or vegas, my Lumia phone’s battery lasts 36 hours on single charge with moderate to heavy use and full day 3G on. While same phone only lasts about 9 to 10 hours if I keep my 3G always on. So you know I am telling this from my experience.

    • Sugu April 14, 2014 3:28 pm

      +1 with that.. Indian 3G (Idea/BSNL) in Kottayam don’t go beyond 6Mbps … And battery drain is severe … However in Dubai, min speed is 9Mbps and range is always above 20ASU ..

      • Soumyajit Dutta April 19, 2014 2:33 pm

        Most Telecom providers in India gives 3G using towers which are connected by microwave and not fibre and the customers actually get high speed 2.5 G and not 3G. This results in low speed, high signal fluctuation and low battery life

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