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When do you think a revolution came in the telecommunication industry? Well, the most common answer is after the launch of Mukesh Ambani’s Jio. This company made an incredible entry into the Indian mobile telecom sector with the most exclusive cost leadership strategy that revolutionized the whole market of telecommunication. But how do you think did that happen? Was it the investments in the company or the business model or Mukesh Ambani’s strategic plans? Well to know more about Jio go through this article.
Jio - Company Highlights
|Founded||15th February 2017|
|Parent Organization||Reliance Industries|
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When Anil Ambani and Mukesh Ambani had a split in the year 2005 it was one of the biggest de-merger in the industry. The dream project of Mukesh Ambani that was Reliance Infocom became a part of Anil Ambani Group. Further Mukesh Ambani went on to acquire the company Infotel Broadband Services Limited which was the only successful bidder across India for the 4G network.
That is when Mukesh Ambani’s Reliance Limited started working in establishing a base for high-speed optical fiber 4G network which is much more capable than 4G. ] The company was named Reliance Jio Infocom Ltd popularly known as Jio today. Jio was the first network to provide 4G LTE services and VoLTE services.
Jio launched this service on 5th September 2016 for all the users and also launched its smartphone series with the name LYF. Reliance Jio Infocom Ltd (RJIL) focused on high-speed data instead of voice and SMS. On its launch, the company announced data plans with 1GB 4G data per day in the market where mostly all popular telecom providers offered 1GB data per month.
This was a game-changer by RJIL in the price-sensitive market of India as the prices before that revolved around Rs.250-300 for 1 GB 4G data which went down to Rs. 5 per GB during the initial days. With such amusing plans gradually Jio also offered free voice calling and free 100 SMS per day for all its Prime members.
Founder of Jio and team
Mukesh Dhirubhai Ambani is one of the richest man in the world. He is the richest man of India and his family is the richest family of Asia as reported by Forbes. Mukesh Dhirubhai Ambani is the director and chairman of Reliance Industries Ltd which is one of the biggest conglomerates of India.
Mukesh Ambani was born in Aden but he grew up in Mumbai. Being one of the most influential and powerful personalities of the country he has provided his business acumens to the whole world. Mukesh Ambani is the owner of the world’s largest refinery. He has achieved tons of notable accomplishments and is a part of many renowned institutes as well.
How was Jio Started?
Some time back, Mukesh Ambani the founder of Jio was asked about how he thought of coming up with such an amazing idea to which he said that this idea was seeded by his daughter Isha Ambani. In 2011, Isha Ambani was a student at Yale in the US and was home for holidays.
She told her dad that how bad the internet connectivity was at their house because she couldn’t submit her coursework. At that time Mukesh Ambani realized that how India is suffering from bad and poor connectivity of the internet.
The data was severely scarce and overpriced which was unaffordable to a majority of Indians. Since then Mukesh Ambani started working on Jio to make the data services abundant and affordable in every part of the country.
Jio - Name, Tagline, and Logo
JIO stands for Joint Implementation Opportunities and the full name of the company is Reliance Jio Infocom Ltd.
The logo of Reliance Jio has a hidden meaning. When we flip the logo and look at its mirror image it is read as ‘oil’ which represents the past and future of Reliance. The company Reliance became the huge giant in the 20th century because of its Oil business and in the 21st century probably the flipped version Jio has created that revolution.
The slogan of Reliance Jio is ‘Digital Life’ while a popular tagline of Jio has been ‘Jio jee bharke’ which means live life to the fullest.
Jio - Business Model and How it Works?
Reliance Jio had really smart strategies and most of them belonged to the founder Mukesh Ambani. For its initial year, Jio gave unlimited data services and high-quality Volte calling services at very nominal charges. The complete change in the market made other telecom operators change their business models.
Such offers created a lot of radical and unexpected changes in the consumer’s behavior as well. Also, it led to many mergers and acquisitions in Indian mobile network providers. Jio, in turn, made people use more and more services so that they spend more.
Recently Jio has now started to charge 6 paise per minute on calling services as well. Well in the initial phase Reliance took a big risk to enter into the telecom industry but has proved to be one of the best companies in the current market.
Relevant read: JioMart: How did Ambani Set to Achieve another Milestone?
Jio - Competitors
There are many telecommunication brands which have sustained their brand for years, even before Reliance Jio was launched. The popular brands like Airtel, Idea, Vodafone, etc. had achieved customer's trust for years but the entry of Jio made them change their business strategies and workings.
Small network operators like Aircel, Tata Teleservices, and Telenor had to shut down their functions in India because of the revolution brought by Jio into the market. The profits of other Telecom operators have also drastically decreased since Jio’s inception.
Jio - Future Plans
Mukesh Ambani recently in an interview stated that Reliance Jio is now focusing on growing the teledensity in the rural and remote areas. The company is continuing to grow the demand for telecom services and provide digital services with greater services.
The company may also expand from being a digital telecom service provider to a digital services player which also offers services related to agriculture, healthcare, and education. Jio also aims to be an influencer and initiator in bringing and developing 5G services in India.