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Saturday, 27 August 2016 00:00

Telecom operators' market share in trouble: Reliance Jio effect Featured

Mukesh Ambani made re-entry into the Telecom industry. Now his primary goal is to accumulate 10 crores subscribers to Reliance Jio. Reliance Industries Limited is promoting Reliance Jio 4G services across the country.

All the telecom operators are fearing of their market share in the country due to Jio. Recently, Reliance Jio announced a free offer to it's users. The users are going to get 90 days unlimited data and voice services for free. But,Jio is claiming that it is experimenting it's services.All the leading telecom operators decreased their data tariffs by more than 40 percent.The telcos are bearing heavy losses with the entry of Jio 4G network. Nearly 3/5th of the market share is shared by Vodafone, Airtel and Idea networks. If Jio reaches it's target of acquiring 10 crores subscribers, these networks' market share is greatly reduced. The telecom operators complained on Jio's offers to TRAI. Reliance also complained TRAI that other cellular companies are not redirecting the calls from Jio's network and creating call drops intentionally. 

 The companies are spending thousands of crores on expanding their network. Jio started it's operations with a capital of 1.35 lakh crores. Mukesh Ambani is flooded with heavy profits in the petroleum refining business. He is reinvesting his profits on expanding Jio's network. 

 Leading handset companies like Panasonic and Micromax signed an MoU with Reliance Jio.The customers can avail all offers from Jio and they get a Jio Sim on the purchase of new mobile handset. Samsung and LG also joined their hands with Jio's network. YU smartphone users can also avail all the benefits of Jio 4G network. With the Jio's sim, the users get HD Voice calls, Video calling, SMS , Data services free for a period of 90 days. 

  After announcing heavy tariff reductions by the companies, the revenue is greatly decreased. Some companies are not able to withstand the heavy competition. We are hearing the merger news of Idea Cellular networks and Vodafone network in the recent times. Aircel also started it's merger with RCom , according to sources. Let's see the future of Telecom sector with the entry Reliance Jio in the Indian Market. Market analysts are expecting that,Reliance Jio's tariffs after free period is a key factor. If the tariff rate is high, the users move to their old network again.

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