5 Ways Which Can Help Incumbent Telcos to Fight Reliance Jio and Regain the Lost Ground

By August 17th, 2017 AT 12:08 PM

Reliance Jio is disrupting the Indian telecom market with cheaper tariff plans every single time. When everyone thought that Jio had run out of cut throat tariffs, Jio launched the most affordable 4G phone targeting the feature phone makers and the incumbent operators at the same time.

mobile-india-airtel

The launch of Jio Phone aims to take away around 50 crore feature phone users who are deprived of data services that are being enjoyed by their smartphone counterparts on 4G network. With the launch of Jio Phone which is a 4G feature phone, Jio will get a significant chunk of 2G subscribers from the incumbent telcos.Hence, this new move by Reliance Jio will not be easy to digest by any of the incumbent telcos.

SWOT Analysis

Jio Infocomm is backed by Reliance Industries (RIL) which has a market cap of over 5 lakh crores. They have already invested more than Rs 2 lakh crores in Jio. Jio has enough funds to explore more opportunities and give users the cheapest possible tariffs.

The strength of incumbent telcos like Airtel and Vodafone lies in the fact that they have huge customer base backed by excellent customer support and network. Airtel, Vodafone, and Idea are in the business for more than 5 years and know the market metrics to dive into profitability. Airtel has got one of the best networks as certified by OpenSignal and Ookla recently.

One Network

All the incumbent operators have 2G, 3G, and 4G networks. This hampers operational efficiency and also leads to underutilization of each of these networks and related spectrum. Instead of being Jack of all trades and Master of none, the incumbents should focus on 4G. The future is 4G as 4G networks have only one IP network for both voice and data, unlike 2G and 3G that have two distinct networks for voice and data.

Affordability

To migrate a large user base of 2G and 3G users to 4G network, 4G handsets should be affordable for the masses. Here the incumbents can follow in the footsteps of Jio. Take refundable deposit from users and offer them a first recharge plan for as low as Rs.150.

One Tariff

Jio has eliminated the bill shock factor.Jio plans have all in one feature except for ISD. Simple tariffs make selecting a plan easy for the subscriber as well as the retailer to explain it to the customer.

Developing Existing Services

Incumbent telcos should think about reviving the broadband service too. The need of the hour is reducing the price of broadband as Jio has already promised to do what it has done in mobile telephony.

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dskushwahaSonuSBSandySanjeetM S Recent comment authors
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dskushwaha
dskushwaha

Problem with 4G only network like JIO: only 1 SIM will work as presently no dual SIM mobile phone has such facility where both the SIM can work on 4G mode. This is refraining me from porting my primary mobile number to JIO.

SonuSB
SonuSB

I agree with your point as I feel same to port my primary number to Jio.

vijay mishra
vijay mishra

Airtel – Previously giving 30p minutes Loc/STD calls for 56 days at Rs 8 is now giving same offer for 28 days at Rs. 86. Airtel dream a lot and thinks that the subscribers are fool. I just discarded to recharge my Airtel. Instead I recharged my JIO for 399-peace for 84 days…

Screenshot_2017-08-18-16-48-01-758_com.myairtelapp.png
Sanjeet
Sanjeet

Just send a port sms ,,,

Sanjeet
Sanjeet

They will reduce call rates without any charge ,,,,, peace

Sandy
Sandy

Guys Airtel has started treating their 2g/3g user like fools. They have stopped giving any special data offers and even calling offers are also worse. See the screenshot. Thank god, I was having a spare sim of idea which is still giving good offers and airtel is my dad secondary sim, but their speed has taken a hit. Still usable.

Screenshot_2017-08-19-13-28-25-993_com.myairtelapp.png
dskushwaha
dskushwaha

These days idea (UPE) has gone insane and makes you listen to it’s useless and sometimes non-existent offer before every voice calls. This causes unnecessary delay in connecting the call. Users receive unlimited SMSs also for the same offers. All this is happening even when my mobile number is registered for DND.

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