Shake-out imminent, but winning the race would be no cake-walk for Reliance Jio

Amid speculations that Reliance Jio’s (RJio) entry will disrupt the whole telecom ecosystem, a school of thought, however, says that entering the market and conquering it would be no cake-walk for the company as it has to face multiple challenges moving ahead. During the Monsoon Hungama offer of Reliance a decade ago, when it took the industry by storm, a large number of people did not have any connection or affordable handsets available, as a result, when the offer was launched it led to a mad rush, but now the scenario is not the same, connection or services are already there the only challenge is to get good quality services, analysts say.

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According to Mahesh Uppal, Telecom Consultant and Director of ComFirst, “There is no doubt when a big player enters a market then clearly, it is a challenge for the smaller players whose ability is limited because of its size and ability to invest. However, the problem in telecom is that if you want to enter the market, you have to take customers of other players and customers would switch to your service only if you are providing some exceptional services.”

For RJio, getting customers who already have a connection will be a bigger challenge, why they would move to a new player unless that player has proven itself in the market. Though we all are talking about disruption but the question is what would be the magnitude of that disruption.