Reliance Jio Retains Top Spot in the Industry and There Are Specific Reasons for It

Reliance Jio

In our series of discussions about telecom operators and what each player has done well, there is one operator that stands out from the rest, and looking at the numbers to determine a name is an exercise in futility. Mukesh Ambani led telecom operator Reliance Jio has trumped over the other competitors owing to a perfect mixture of pricing, strategy, and product offerings. However, there are slight lapses in the game that Reliance Jio seems to be plotting, along with some learnings that other telecom operators can pick from. Here we discuss some of them.

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The Game of Competitive Pricing

Reliance Jio Infocomm started its success story by offering free data to all its subscribers for quite a long time. The foray of the telco started a pricing bloodbath which reduced the per GB data price from Rs 226 to Rs 7 in 2019. However, this is not the only thing that helped Reliance Jio in climbing to the top of the food chain.

The introduction of the JioPhone was the second feather in the cap for the company. This helped the telecom operator in foraging for the rural consumer. Plans which were specially tailor-made for low-paying, JioPhone users clicked with the customers and led to the 300 million+ subscriber count which Jio now boasts of.

Downsides of Aggressive Growth

This mass addition of subscribers at the cost of low prices has surely had its downside. The ARPU of Reliance Jio now stands at Rs 138.2, which is definitely on the lower side, and the analysts don’t agree that it would be sustainable for the long term. Reliance Jio’s strategies have been the catalyst for a tariff hike, which is now imminent and is being seen as a correction in industry pricing. This is a tribute which all telecom operators will pay equally, but some like Vodafone Idea happen to be more in need of it as compared to others.