Reliance Jio

Reliance JIO Introduction

The company incorporated in Mumbai in 2007 and was formerly known as Infotel Broadband Services Limited and later in early 2013 changed it to Reliance Jio Infocomm Limited. It operates as a subsidiary of Reliance Industries Limited. Jio is the only 100% Voice over Long-Term Evolution (VoLTE) operator in India, without 2G/3G based services. VoLTE is a standard for high-speed wireless communication for mobile phones and data terminals. It is based on the IP Multimedia Subsystem (IMS) network, with specific profiles for control and media planes of voice service on LTE defined by GSMA. The 4G services were launched internally to Jio's partners, its staff and their families on 27 December 2015. The company commercially launched its services on 5 September 2016.

Jio owns spectrum in 800 MHz and 1,800 MHz bands in 10 and 6 circles, respectively, of the total 22 circles in the country, and also owns pan-India licensed 2,300 MHz spectrum. The spectrum is valid till 2035. The company plans to launch its 4G broadband services throughout India in the first quarter of 2016-2017 financial years. Prior to its pan-India launch of 4G data and telephony services, Jio has started providing free Wi-Fi hotspot services in cities throughout India including Surat, Ahmedabad in Gujarat and Visakhapatnam in Andhra Pradesh, Indore, Jabalpur, Dewas and Ujjain in Madhya Pradesh. To cater to its upcoming 4G services, Jio launched a bundle of multimedia apps on Google Play in May 2016 which includes JioTV, MyJio, JioMusic, JioChat, JioDrive, JioMobileWallet etc.

Business Model

Their tariff plans is shown below. Jio will make more money by giving free voice calls than what the other companies make by charging for it.

In India, the monthly average revenue per user (ARPU) the current network providers get is around Rs. 150 per month. That is the money they get on average from each user. If customer spend over Rs250 per month, they are considered a high value customer. If you are a voice-only kind of person, then you would be okay with the Rs 149 per 28 days plan, as you will get free unlimited voice calls.

The reason why most internet providers limit your data is basically because they do not have enough bandwidth to handle so much data. Other telecom companies were primarily made to handle voice calls and they have limited data bandwidth. They have to pay to use the fiber network of other companies.

Reliance Jio has already laid a country wide fiber optic network which is designed to even handle the 5G and maybe 6G. So, they do not have much of the data bandwidth problem. Jio currently have the ability to provide truly unlimited data plans, but they will not do so, because that will decrease their profits. If they provide more GBs in the lower end plans, then lesser