Reliance Jio Business Model | How does Jio Makes Money?

Pratyusha Srivastava Pratyusha Srivastava
Dec 20, 2021 6 min read
Reliance Jio Business Model | How does Jio Makes Money?

Reliance Jio, we all have been hearing a lot about this company for the past few years. Reliance Jio is a well-structured company whose business model is considered 'the sweetest data bait.'

Jio has proven itself the icon of international tech and private capital investors. According to estimated data, Jio has raised Rs. 67,194.75 crore from the forthcoming technology investors including Silver Lake, General Atlantic, Facebook, and Vista Equity.

With the vibrant interest of the foreign investors in the Indian market have signed several deals for Reliance Jio. When it comes to the business model of Jio, the company has opted for very cleverish strategies which have resulted in remarkable profits for the company.

Reliance Jio holds a very strong position in the market with an immense customer base. Through this article, we will be discussing the business model of Reliance Jio briefly along with its tremendous marketing strategies. Let's begin!

About Reliance Jio
Key Product and Services of Reliance Jio
Target Audience of Reliance Jio
Business Model of Reliance Jio
What is unique about the business model of Reliance Jio?
How does Reliance Jio make money?
Conclusion
FAQs

About Reliance Jio

Reliance Jio Logo
Reliance Jio Logo

Jio is officially termed as Reliance Jio Infocomm Limited which functions as the Indian telecommunications company. Jio was founded by Mukesh Ambani in 2007 as the subsidiary of Reliance Industries.

Reliance Jio, which functions as a subsidiary of Jio platforms and telecommunications services providers has its well-established headquarter in Mumbai, Maharashtra, India. Alongside the company operates all 22 telecom circles through the National LTE network. Through this, Jio provides the voice service on its 4G network, that too only from the LTE network.

Today, Jio is known as the largest mobile network operator across India and the third-largest in the world. The company has over 42.62 crore subscribers. Recently in 2019, Jio launched its service of fiber to the home, where it offers television, telephone, and home broadband services. As of 2020, Reliance Jio raised its funds by selling around 33% equity stake in Jio Partner, worth Rs. 1.65 lakh crore that is, US$23 billion.

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Key Product and Services of Reliance Jio

Reliance Jio Services
Reliance Jio Services

Reliance Jio offers tons of amazing services through its fiber-to-the-home services. Its key services include telephone services, television, and home broadband services.

While its key products are Mobile Phones, top-notch internet speed and services, fixed-line telephone, OTT services, and Wireless broadband.

Target Audience of Reliance Jio

Reliance Jio majorly concentrates on the audience who are smartphone users. It provides the service of high-speed internet and great android mobile services. Jio targets the urban and two-tier middle and upper-class people. Jio works towards transforming India into a digital nation.


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Business Model of Reliance Jio

Jio, being the highest in the market strategizes its business model in a very significant and unique way. It has opted for the formula of 'Unique Selling Point.' This basically means Jio offering such unique and advantageous services to their customers that can not be resisted.β€Œβ€Œ This can be elaborate as when Jio launched the unlimited offer with a 4G server, people of India weren't encountered 4G at all. And with such a unique offer, how can someone turn it down? And that's what benefits the company of Reliance Jio.

Jio offers a broad range of customer-based features and services like high-speed Internet, free voice calls, unlimited texting, and many other. All these are developed to charge money from the customers. Its tariff plans are exclusively built to catch consumers' eyes.

Jio has offered some very exclusive services to its customers with a fully served 4G network. Jio was the first to bring on the popularity and use of 4G network while other telecom companies were still working with 3G networks. And with this significant approach, Jio builds the biggest loyal customers base.β€Œβ€Œ People wanted more things in less price, Jio took the opportunity and provided them that. This unique strategy is what brought Jio where it is now!


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What is unique about the business model of Reliance Jio?

Jio has opted for the most powerful and promising business strategies, which has surely brought great benefits and profit to it. Its business model is very simple, yet unique. The most unique thing about Jio is it offers free voice calls to its customers. According to statistics, only 10-15% of the Jio 4G network is used for calling while the other 85-90% is used for data. And when you have this amount of popularity and usage, paying a little price is always worth it. That's what Jio does!

In this way, it attracts more and more customers to its services and creates a significant marketing buzz with free offerings. In all manner, it's beneficial for the company.

How does Reliance Jio make money?

Reliance Jio generates its money from two major options- Charging extra per unit and selling more units. And as compared to other telecom companies, Jio sells way more of its units to generate more money.

For those who refer to Jio as a cheap telecom service provider, they are talking about its per-unit cost. But apart from this, the company charges its customers INR 154 for ARPU. And this amount is higher than any other telecom operator company.

So, the Jio customers are actually paying more for the cheap products. Jio does not provide the facility of paying just INR 10 per month as compared to other telecom companies. Jio majorly focuses on generating more money through all its plans.


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Conclusion

β€Œβ€ŒWith its incredible marketing strategy of generating money through Jio tariff plans that come in 4G network brings great profit for the company. Jio follows different pricing options and makes enormous customer deals.

They offer various applications, devices, and fiber services to multiply their revenue. This helps Jio to win numerous business verticals. And with such marketing strategies and development, Jio's market value and position are unbeatable.

FAQs

What is the revenue of Reliance?

Reliance has a revenue of 7.27 lakh crores INR (US$100 billion, 2021).

Who is the CEO of Reliance Jio?

Atul Kansal is the CEO of Reliance Jio.

When was Relinace Jio founded?

Mukesh Ambani founded Reliance Jio in 2007.

Who are the top competitors of Reliance Jio?

Some of the top competitors of Reliance Jio are:

  • Airtel
  • Vi (Vodafone Idea)
  • AT&T

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