IMPACT OF RELIANCE JIO ON INDIAN TELECOM INDUSTRY

A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Accounting and Finance)
Under the Faculty of Commerce

BY
HARI HARAN THAPA

Under the guidance of

Mackrina Tuscano

Shankar Narayan College of Arts & Commerce

Mahavidyalaya Marg, Navghar Road, Bhayandar (East),
Thane - 401105

ROLL NO 62
Academic Year 2019-20
Semester VI

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 DECLARATION

I the undersigned Mr HARI HARAN THAPA here by, declare that the work embodied in
this project work titled “IMPACT OF JIO ON TELECOM INDUSTRY” from my own
contribution to the research work carried out under the guidance of MACKRINA
TUSCANO is a result of my own research work and has not been previously submitted to
any other University for any other Degree\ Diploma to this or any other university. Wherever
reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, hereby further declare that all information of this document has been obtained
and presented in accordance with academic and ethical conduct.

HARI HARAN BHIMSINGH THAPA

Certified by

MACKRINA TUSCANO

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 ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal Dr VN Yadav for providing the necessary facilities
required for completion of this project

I take this opportunity to thank our HOD Brinda Shah for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Mackrina
Tuscano whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.

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 ABSTRACT

In the world of intense competition amongst all the industries, the telecom industry also does
not fail to stay behind. With the belief that the customer is the king, each and every company
in India is willing to go to depths and cross lines every day so that they can be that one brand
that customers look for. While choosing a Network, one looks for various factors such as
Network coverage, the call rates, the internet plan offered and not to forget but the value-
added services as well. Satisfying the consumers in each of this aspect is not an easy task.
Based on the literature review and after considering the questions we want to answer; the
research problem of the research paper is “The Effect on The Consumers and Telecom
Industry after the Introduction of Reliance Jio.” The problem mainly focuses on how the
telecom industry was before and after Jio, what people believe and perceive about Reliance
Jio and what challenges the competitors faced with the introduction of Jio. Based on the
research problem, these are some of the objectives of our study,

1. To study the impact of Reliance Jio on the telecom industry, the change in composition of
industry, change in market share and the reforms that were undertaken
2. To identify the effect of Jio on common people and consumer behavior
3. To identify the business strategy followed by Jio and its Competitors

The methodology used in the research paper was s Single Cross-Sectional Descriptive
Design. With the objective and design, the tool used for analysis were Mean, Standard
Deviation to compare and analyze the data, also test like the Z-test and Chi-Square Test were
done to test the hypothesis. Finally, the findings of the research paper concluded that Jio
disrupted the market to such a level forcing competitors to exit or merge, amongst the
consumers, the respondents were eager to test the new competitor in the market and thus the
research witnessed a significant shift in the network from other networks to Jio. Through our
research we recommend that Consumers should try to shift to Jio, with their very low
monthly plans and Huge value-added services offered, which the competitors are still not able
to achieve, adds to the success of Jio in India.

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 TABLE OF CONTENTS
ACKNOWLEDGEMENT 3
ABSTRACT 4

CHAPTER ONE
1.0 Introduction 7
1.1 Telecommunication Industry 7
1.2 Telecommunication Industry Types 8
1.3 Evolution over years 13
1.4 Reliance Jio 15
1.5 Revenue and growth 20
1.6 History of Reliance Jio Infocomm Limited 25

CHAPTER TWO
2.0 Literature review 29
2.1 Introduction 29
2.2 The overview of the Indian Telecom sector 29
2.3 Business model of companies in telecom sector 31
2.4 The impact of Reliance Jio on other players in the industry 34
2.5 The ways in which Reliance Jio has dominated the Indian Telecom industry 38

CHAPTER THREE
3.0 Research methodology 41
3.1 Scope of the study: 41
3.2 Objectives of present study: 41
3.3 Data collection method/research design 42
3.4 Sampling design/sampling technique 42
3.5 Data analysis techniques: 43
3.6 Limitation of the study 44

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 CHAPTER FOUR
4.0 Data analysis 45

CHAPTER FIVE
5.1 Introduction 53
5.2 Findings 53
5.3 Conclusion 54
Bibliography 55

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 CHAPTER 1

Introduction

1.1 Telecommunication Industry

India's telecommunication network is the second largest in the world by number of

telephone users (both fixed and mobile phone) with 1.183 billion subscribers as on 31 May

2019 and India has the world's second largest Internet user-base with 460.24 million

broadband internet subscribers in the country.

Major sectors of the Indian telecommunication industry are telephone, internet and television

broadcast industry. Indian telecom industry underwent a high pace of market liberalisation

and growth since the 1990s and now has become the world's most competitive and one of the

fastest growing telecom markets. The Industry has grown over twenty times in just ten years,

from under 37 million subscribers in the year 2001 to over 846 million subscribers in the year

2011. The Industry has grown over twenty times in just ten years, from under 37 million

subscribers in the year 2001 to over 846 million subscribers in the year 2011. India has

the world's second largest mobile phone user base with over 1157.04 million users as of July

2018.

Communications in India

Total telephone subscribers 1.1835 billion (May 2019)

Mobile subscribers 1.161 billion (May 2019

Telecommunication in India has greatly been supported by the INSAT system of the country,

one of the largest domestic satellite systems in the world. Telecommunication has supported

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the socioeconomic development of India and has played a significant role to narrow down the

rural-urban digital divide to some extent. It also has helped to increase the transparency of

governance with the introduction of e-governance in India. The government has

pragmatically used modern telecommunication facilities to deliver mass education

programmes for the rural folk of India.

1.2 Telecommunication Industry Types

The telecommunications sector consists of three basic sub-sectors: telecom equipment (the

largest), telecom services (next largest) and wireless communication. The major segments

within these sub-sectors include the following:

 Wireless communications

 Communications equipment

 Processing systems and products

 Long-distance carriers

 Domestic telecom services

 Foreign telecom services

Telephony

Private sector and two state-run businesses dominate the telephony segment. Most companies

were formed by a recent revolution and restructuring launched within a decade, directed

by Ministry of Communications and IT, Department of Telecommunications and Minister of

Finance. Since then, most companies gained 2G, 3G and 4G licences and engaged fixed-line,

mobile and internet business in India. On landlines, intra-circle calls are considered local calls

while inter-circle are considered long distance calls. Foreign Direct Investment policy which

increased the foreign ownership cap from 49% to 100%. The Government is working to

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integrate the whole country in one telecom circle. For long distance calls, the area code

prefixed with a zero is dialled first which is then followed by the number (i.e., to call Delhi,

011 would be dialled first followed by the phone number). For international calls, "00" must

be dialled first followed by the country code, area code and local phone number. The country

code for India is 91. Several international fibre-optic links include those to Japan, South

Korea, Hong Kong, Russia, and Germany. Some major telecom operators in India include the

privately owned companies like Vodafone Idea, Airtel, and Reliance Jio and the state-owned

companies- BSNL and MTNL.

Landline

Before the New Telecom Policy was announced in 1999, only the Government-

owned BSNL and MTNL were allowed to provide land-line phone services through copper

wire in India with MTNL operating in Delhi and Mumbai and BSNL servicing all other areas

of the country. Due to the rapid growth of the cellular phone industry in India, landlines are

facing stiff competition from cellular operators, with the number of wireline subscribers fell

from 37.90 million in December 2008 to 23 million in December 2017. This has forced land-

line service providers to become more efficient and improve their quality of service. As of

July 2018, India has over 22 million wireline customers.

Mobile telephony

In August 1995, then Chief Minister of West Bengal, Jyoti Basu made the first mobile phone

call in India to then Union Telecom Minister Sukhram. Sixteen years later 4G services were

launched in Kolkata in 2012. With a subscriber base of more than 1,179.32 million (as of July

2018), the mobile telecommunications system in India is the second largest in the world and it

was thrown open to private players in the 1990s. GSM was comfortably maintaining its

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position as the dominant mobile technology with 80% of the mobile subscriber market, but

CDMA seemed to have stabilised its market share at 20% for the time being.

The country is divided into multiple zones, called circles (roughly along state boundaries).

Government and several private players run local and long distance telephone services.

Competition, especially after entry of Reliance Jio, has caused prices to drop across India,

which are already one of the cheapest in the world. The rates are supposed to go down further

with new measures to be taken by the Information Ministry.

In September 2004, the number of mobile phone connections crossed the number of fixed-

line connections and presently dwarfs the wireline segment substantially. The mobile

subscriber base has grown from 5 million subscribers in 2001 to over 1,179.32 million

subscribers as of July 2018. India primarily follows the GSM mobile system, in the 900 MHz

band. Recent operators also operate in the 1800 MHz band. The dominant players

are Vodafone Idea, Airtel, Jio, and BSNL/MTNL. International roaming agreements exist

between most operators and many foreign carriers. The government allowed Mobile number

portability (MNP) which enables mobile telephone users to retain their mobile telephone

numbers when changing from one mobile network operator to another. In

2014, Trivandrum became the first city in India to cross the mobile penetration milestone of

100 mobile connections per 100 people. In 2015 three more cities

from Kerala, Kollam, Kochi and Kottayam crossed the 100 mark. In 2017 many other major

cities in the country like Chennai, Mysore, Mangalore, Bangalore, Hyderabad, etc. also

crossed the milestone. Currently Trivandrum tops the Indian cities with a mobile penetration

of 168.4 followed by Kollam 143.2 and Kochi 141.7.

International

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 Nine satellite earth stations – 8 Intelsat (Indian Ocean) and 1 Inmarsat (Indian Ocean

region).

 Nine gateway exchanges operating from Mumbai, New

Delhi, Kolkata, Chennai, Jalandhar, Kanpur, Gandhinagar, Hyderabad and Trivandrum.

Submarine Cables

 LOCOM linking Chennai to Penang, Malaysia

 India-UAE cable linking Mumbai to Al Fujayrah, UAE.

 SEA-ME-WE 2 (South East Asia-Middle East-Western Europe 2)

 SEA-ME-WE 3 (South East Asia-Middle East-Western Europe 3) – Landing sites

at Cochin and Mumbai. Capacity of 960 Gbit/s.

 SEA-ME-WE 4 (South East Asia-Middle East-Western Europe 4) – Landing sites

at Mumbai and Chennai. Capacity of 1.28 Tbit/s.

 Fibre-Optic Link Around the Globe (FLAG-FEA) with a landing site at Mumbai (2000).

Initial design capacity 10 Gbit/s, upgraded in 2002 to 80 Gbit/s, upgraded to over 1 Tbit/s

(2005).

 TIISCS (Tata Indicom India-Singapore Cable System), also known as TIC (Tata Indicom

Cable), Chennai to Singapore. Capacity of 5.12 Tbit/s.

 i2i – Chennai to Singapore. Capacity of 8.4 Tbit/s.

 SEACOM From Mumbai to the Mediterranean, via South Africa. It joins with SEA-ME-

WE 4 off the west coast of Spain to carry traffic onward to London (2009). Capacity of

1.28 Tbit/s.

 I-ME-WE (India-Middle East-Western Europe) with two landing sites at Mumbai (2009).

Capacity of 3.84 Tbit/s.

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 EIG (Europe-India Gateway), landing at Mumbai (2011). Capacity of 3.84 Tbit/s.

 TGN-Eurasia Landing at Mumbai (2012), Capacity of 1.28 Tbit/s

 TGN-Gulf Landing at Mumbai (2012), Capacity Unknown.

 MENA (Middle East North Africa), Capacity of 5.76 Tbit/s.

Radio

As of June 2018, there are 328 private FM radio stations in India. Apart from the private FM

radio stations, All India Radio, the national public radio broadcaster of India, runs multiple

radio channels. AIR’s service comprises 420 stations located across the country, reaching

nearly 92% of the country’s area and 99.19% of the total population. AIR originates

programming in 23 languages and 179 dialects.

Next Generation Network (NGN)

A next-generation network (NGN) is a packet-based network which can provide services

including Telecommunication Services and able to make use of multiple broadband, quality

of Service-enabled transport technologies and in which service-related functions are

independent from underlying transport-related technologies. It offers unrestricted access by

users to different service providers. It supports generalised mobility which will allow

consistent and ubiquitous provision of services to users.

The user can connect to the IP-core of NGN in various ways, most of which use the standard

Internet Protocol (IP). User terminals such as mobile phones, personal digital

assistants (PDAs) and computers can register directly on NGN-core, even when they

are roaming in another network or country. Keeping in mind the viability of providing

services in rural areas, the government of India also took a proactive role to promote the NGN

implementation in the country; an expert committee called NGN eCO was constituted in order

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to deliberate on the licensing, interconnection and Quality of Service (QoS) issues related to

NGN and it submitted its report on 24 August 2007.

Telecom operators found the NGN model advantageous, but huge investment requirements

have prompted them to adopt a multi-phase migration and they have already started the

migration process to NGN with the implementation of IP-based core-network.

1.3 Evolution over years

Telecommunications in India began with the introduction of the telegraph.

The Indian postal and telecom sectors are one of the world’s oldest. In 1850, the first

experimental electric telegraph line was started between Calcutta and Diamond Harbour. In

1851, it was opened for the use of the British East India Company. The Posts and Telegraphs

department occupied a small corner of the Public Works Department, at that time. In 1880,

two telephone companies namely The Oriental Telephone Company Ltd. and The Anglo-

Indian Telephone Company Ltd. approached the Government of India to establish telephone

exchange in India. The permission was refused on the grounds that the establishment of

telephones was a Government monopoly and that the Government itself would undertake the

work. In 1881, the Government later reversed its earlier decision and a licence was granted to

the Oriental Telephone Company Limited of England for opening telephone exchanges

at Calcutta, Bombay, Madras and Ahmedabad and the first formal telephone service was

established in the country. On 28 January 1882, Major E. Baring, Member of the Governor

General of India's Council declared open the Telephone Exchanges in Calcutta, Bombay and

Madras. The exchange in Calcutta named the "Central Exchange" had a total of 93

subscribers in its early stage. Later that year, Bombay also witnessed the opening of a

telephone exchange.

Further developments and milestones

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 Pre-1902 – Cable telegraph.

 1902 – First wireless telegraph station established between Sagar Island and Sandhead.

 1907 – First Central Battery of telephones introduced in Kanpur.

 1913–1914 – First Automatic Exchange installed in Shimla.

 1927 – Radio-telegraph system between the UK and India, with Imperial Wireless

Chain beam stations at Khadki and Daund. Inaugurated by Lord Irwin on 23 July by

exchanging greetings with King George V.

 1933 – Radiotelephone system inaugurated between the UK and India.

 1947 - First Electronics & Telecommunications Engineering department started in India at

the Government Engineering College, Jabalpur.

 1953 – 12 channel carrier system introduced.

 1960 – First subscriber trunk dialling route commissioned between Lucknow and Kanpur.

 1975 – First PCM system commissioned between Mumbai City and Andheri telephone

exchanges.

 1976 – First digital microwave junction.

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1.4 Reliance Jio

Joint Implementation Opportunities

JIO stands for Joint Implementation Opportunities. JIO is a Telecom network company

that's full name is Reliance Jio Infocomm Limited. The headquarter of JIO is located in

Mumbai Maharashtra, India. JIO is the largest mobile network company in India and third

largest mobile network company in the world.

Reliance Jio Infocomm Limited, d/b/a Jio, is an Indian telecommunications company and

wholly owned subsidiary of Reliance Industries, headquartered

in Mumbai, Maharashtra, India. It operates a national LTE network with coverage across all

22 telecom circles. It does not offer 2G or 3G service, and instead uses only voice over

LTE to provide voice service on its 4G network.

Jio soft launched on 27 December 2015 with a beta for partners and employees, and became

publicly available on 5 September 2016. As of 31 December 2019, it is the largest mobile

network operator in India and the third largest mobile network operator in the world with over

370.07 million subscribers. It is also the fourth largest provider of fixed telephony in Country.

In September 2019, Jio launched a fiber to the home service, offering home broadband,

television, and telephone services.

Reliance Jio is a subsidiary of Reliance Industries. A subsidiary, subsidiary

company or daughter company is a company that is owned or controlled by another

company, which is called the parent company, parent, or holding company.[4][5] The subsidiary

can be a company, corporation, or limited liability company. In some cases it is a government

or state-owned enterprise.

It was founded on 15 February 2007 by Mukesh Ambani. He is also the chairman of the

company. Sandip Das is the Managing Director.

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The products of Jio are as follows:

 Fixed Line Telephony or Landlines.

 Mobile Telephony.

 Wireless Broadband.

 Internet Services.

 Over-the-top services or OTT services.

Mobile Broadband

The company launched its 4G broadband services throughout India in September 2016. It was

slated to release in December 2015 after some reports said that the company was waiting to

receive final permits from the government. Jio offers fourth-generation (4G) data and voice

services, along with peripheral services like instant messaging and streaming movies and

music.

Jio Fibre:

In August 2018, Jio began to test a new triple play fiber to the home service known tenatively

as Jio GigaFiber, including broadband internet with speeds ranging from 100 to 1000 Mbit/s,

as well as television and landline telephone services.

In August 2019, it was announced that the service would officially launch on 5 September

2019 as JioFiber, in honour of the company's third anniversary. Jio also announced plans to

offer streaming of films still in theatres ("First Day First Show") to eligible JioFiber

subscribers.

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The company has a network of more than 250,000 km of fiber optic cables in the country,

over which it will be partnering with local cable operators to get broader connectivity for its

broadband services.

Jio has also marketed co-branded mobile phones.

LYF Smartphones

An image of LYF WATER 2 phone with IPS display.

In June 2015, Jio entered into an agreement with domestic handset maker Intex to supply 4G

handsets capable of voice over LTE (VoLTE). However, in October 2015, Jio announced that

it would be launching its own mobile handset brand named LYF.

On 25 January 2016, the company launched its LYF smartphone series starting with Water 1,

through its chain of electronic retail outlets, Reliance Retail. Three more handset models have

been released so far, namely Water 2, Earth 1, and Flame 1.

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Jio Phone

JioPhone is a line of feature phones marketed by Jio. The first model, released in August

2017 (with public pre-orders beginning 24 August 2017), was

positioned as an "affordable" LTE-compatible feature phone. It runs

the KaiOS platform (derived from the defunct Firefox OS), and

includes a 2.4-inch display, a dual-core processor, 4 GB of internal

storage, near-field communication support, a suite of Jio-branded

apps (including the voice assistant HelloJio), and a Jio-

branded application store. It also supports a "TV cable" accessory for

output to an external display.

In July 2018, the company unveiled the JioPhone 2, an updated model in a keyboard bar form

factor with a QWERTY keyboard and horizontal display. Jio also announced

that Facebook, WhatsApp, and YouTube apps would become available for the two phones.

Jio net wifi

Prior to its pan-India launch of 4G data and telephony services, the firm 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,selectlocationsof Mumbai in Maharashtra, Kolkata in WestBengal, Lucknow in Uttar

Pradesh, Bhubaneswar in Odisha, Mussoorie in Uttarakhand, Collectorate'sOfficein Meerut, a

nd at MG Road in Vijayawada among others.

In March 2016, Jio started providing free Wi-Fi internet to spectators at six cricket stadiums

hosting the 2016 ICC World Twenty20 matches. .

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Jio sim card pouch as distributed by Reliance Jio Infocomm

In May 2016, Jio launched a bundle of multimedia apps on Google Play as part of its

upcoming 4G services. While the apps are available to download for everyone, a user will

require a Jio SIM card to use them. Additionally, most of the apps are in

the beta phase. Notable apps include:

 JioChat - instant messaging app

 JioCinema - online HD video library

 JioCloud - cloud-based backup tool

 JioMags - e-reader for magazines

 JioMoney Wallet - online payments/wallet app

 JioSaavn (earlier, JioMusic) - for online and offline music streaming in English and

Indian languages

 JioSecurity - security app

 Jio4GVoice (earlier, JioJoin) - VoLTE phone simulator

 MyJio - manage Jio account and digital services associated with it

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Affordable Phones

Reliance Jio has partnered with Google to manufacture "affordable" 4G handsets. These

phones will run exclusively on Jio network. The two companies are also working on

developing software for smart-TV services. Both were expected to launch in 2017.

JioFI

Jio has also launched Wi-Fi routers by the name JioFi.

1.5 Revenue and growth

The adjusted gross revenue in the telecom service sector was ₹160,814 crore (equivalent

to ₹1.7 trillion or US$23.6 billion in 2018) in 2017 as against ₹198,207 crore (equivalent

to ₹2.1 trillion or US$29.9 billion in 2018) in 2016, registering a negative growth of 18.87%.

The major contributions to this revenue are as follows (in INR crores):

Calendar year Calendar year

Service Q2 18 (June)
2016 2017 %change
provider (in INR crores)
(in INR crores)
(in INR crores)

Vodafone Idea 64,116 59,538 -7.14 8226.80

Airtel 52,017 39,050 -24.92 6809.78
BSNL 13,110 10,564 -19.42 2273.58
Reliance Jio -303 7,466 +25.64 7125.69
Tata Docomo 9,957 6,478 -34.94 553.98
Aircel 11,164 5,082 -54.48 -
Reliance
5,825 3,061 -47.45 149.12
Communication
MTNL 478.61 556.87 -14.05 440.24
Quadrant 140 4 -97.04 5.89
Videocon 4,712 0 - -

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 Calendar year Calendar year
Service Q2 18 (June)
2016 2017 %change
provider (in INR crores)
(in INR crores)
(in INR crores)

Total 1,63,605 1,22,613 -25.06 25585.07

Merges and Changes:

 Airtel acquired Telenor India in May 2018 and the data of Airtel and Telenor India has

been merged.

 On 31 August 2018, Vodafone and Idea merged to form the world's second-largest telcom

company, and the largest in India, officially known as Vodafone Idea Limited and both

the companies' data has been merged..

 On 1 November 2017, MTS India merged with Reliance Communications and their data

has been merged.

 Videocon shut down its network and discontinued operations in the Gujarat and UP

(West) circles on 26 December 2015, and in the Haryana, Madhya Pradesh, Bihar and UP

(East) circles on 11 May 2016.

 Reliance Communications discontinued its wireless voice services on 29 December 2017,

but continued its data and B2B services till 2018. Reliance Communications filed for

bankruptcy as it was unable to sell its assets to Reliance Jio and closed its operations

under mobile network division on 26 February 2019.

 On 28 February 2018 Aircel filed for bankruptcy at NCLT and has discontinued

operations.

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 Quadrant discontinued its wireless mobile services in April 2017; however, it has

continued to provide wired line services in Punjab circle.

 In July 2016, Virgin Mobile India and T24 Mobile merged their virtual network

operations into Tata Docomo.

 Bharti Airtel acquired the consumer mobile businesses of Tata Teleservices which

includes Tata Docomo in a debt-free deal on 1 July 2019.

The parent company of Jio: Reliance

Founded by Dhirubhai Ambani on 8th May 1973.

Currently Mukesh Ambani is the Chairman and MD.

Reliance Industries Limited (RIL) is an Indian multinational conglomerate

company headquartered in Mumbai, Maharashtra. Reliance owns businesses across India

engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.

Reliance is one of the most profitable companies in India, the largest publicly traded

company in India by market capitalization, and the largest company in India as measured by

revenue after recently surpassing the government-controlled Indian Oil Corporation. On 18

22
October 2007, Reliance Industries became the first Indian company to exceed $100 billion

market capitalization.

Achievements of Reliance Industries Limited:

The company is ranked 106th on the Fortune Global 500 list of the world's biggest

corporations as of 2019. It is ranked 8th among the Top 250 Global Energy Companies

by Platts as of 2016. Reliance continues to be India's largest exporter, accounting for 8% of

India's total merchandise exports with a value of Rs 147,755 crore and access to markets in

108 countries. Reliance is responsible for almost 5% of the government of India's total

revenues from customs and excise duty. It is also the highest income tax payer in the private

sector in India. In 2019, Reliance Industries become the first Indian firm to cross Rs 9 lakh

crore market valuation mark. It has become the first ever Indian company to cross Rs 10 lakh

crore market capitalization.

Operations:

The company's petrochemical, refining, oil and gas-related operations form the core of its

business; other divisions of the company include cloth, retail business, telecommunications

and special economic zone (SEZ) development. In 2012–13, it earned 76% of its revenue

from refining, 19% from petrochemicals, 2% from oil & gas and 3% from other segments.

In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in

its new aerospace division which will design, develop, manufacture, equipment and

components, including aircraft, engine, radars, avionics and accessories for military and

civilian aircraft, helicopters, unmanned airborne vehicles and aerostats.

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Major subsidiaries and associates:

 Reliance Retail

 Reliance Life Sciences

 Reliance Institute of Life Sciences (RILS)

 Reliance Logistics

 Reliance Clinical Research Services (RCRS)

 Reliance Solar

 Relicord

 Reliance Jio Infocomm Limited (RJIL) 

 Reliance Industrial Infrastructure Limited (RIIL)

 LYF

 Network 18

 Reliance Eros Productions LLP

Revenue  ₹622,809 crore (US$87 billion) (2019)

Operating Income  ₹92,656 crore (US$13 billion) (2019)

Net Income  ₹39,588 crore (US$5.6 billion) (2019)

Total Assets  ₹1,002,406 crore (US$140 billion) (2019)

1.6 History of Reliance Jio Infocomm Limited

24
The company was registered in Ambawadi, Ahmedabad (Gujarat) on 15 February 2007 as

Reliance Jio Infocomm Limited. In June 2010, Reliance Industries (RIL) bought a 95% stake

in Infotel Broadband Services Limited (IBSL) for ₹4,800 crore (US$670 million). Although

unlisted, IBSL was the only company that won broadband spectrum in all 22 circles in India

in the 4G auction that took place earlier that year. Later continuing as RIL's telecom

subsidiary, Infotel Broadband Services Limited was renamed as Reliance Jio Infocomm

Limited (RJIL) in January 2013.

In June 2015, Jio announced that it would start its operations throughout the country by the

end of 2015. However, four months later in October, the company postponed the launch to

the first quarter of the financial year 2016–2017.

Later, in July 2015, a PIL filed in the Supreme Court by an NGO called the Centre for Public

Interest Litigation, through Prashant Bhushan, challenged the grant of a pan-India licence to

Jio by the Government of India. The PIL also alleged that the firm was being allowed to

provide voice telephony along with its 4G data service, by paying an additional fee of

just ₹165.8 crore (US$23 million) which was arbitrary and unreasonable, and contributed to a

loss of ₹2,284.2 crore (US$320 million) to the exchequer. The Indian Department of

Telecommunications (DoT), however, explained that the rules for 3G and BWA spectrum

didn't restrict BWA winners from providing voice telephony. As a result, the PIL was

revoked, and the accusations were dismissed.

The 4G services were launched internally on 27 December 2015. The company commercially

launched its 4G services on 5 September 2016. Within the first month, Jio announced that it

had acquired 16 million subscribers. Jio crossed 50 million subscriber mark in 83 days since

its launch, subsequently crossing 100 million subscribers on 22 February 2017. By October

2017 it had about 130 million subscribers.

25
In February 2016, Jio announced a global alliance of Mobile Network Operators which

include:

BT Group, Deutsche Telekom, Millicon, Orange S.A., Rogers Communications, MTS,

Telia Company, Telecom Italia.

According to a press statement, the alliance is an open network of like-minded operators

worldwide with complementary geographical footprints. It is covering all relevant product

categories within an operator's business, mobile as well as fixed, B2C as well as B2B.

Out of all other companies across retail and energy under the Reliance umbrella, only Jio is

the only Reliance company that have its own logo.

Also, the idea to have a different logo that would stand out from the rest of the business of the

old Reliance was the idea of Isha Ambani. She convinced the family to go for a new Jio

logo which comes in eight primary colours unlike the Reliance logo.

While Bharti Airtel, Vodafone India and Idea Cellular launched 4G much earlier, despite

receiving the spectrum at the same time in 2010, Reliance Jio took six years to roll out the

service.

The technology proved the biggest challenge for Reliance Jio. The company’s spectrum for

4G LTE (long-term evolution) services is in the bands of 2300 MHz, 1800 MHz and 850

MHz (through the spectrum sharing partnership with Reliance Communications).

“This mix is unique globally and, as a result, harmonisation of active infrastructure and

devices is a difficult and time-consuming task. Even the cell radius, indoor coverage, capacity

limitations and signal attenuation of each of these spectrum bands are different,” pointed out

Jayanth Kolla, founder and partner at tech research firm Convergence Catalyst.

26
Moreover, the LTE technology adopted by Jio for offering high-speed data services is itself a

new one. It was first adopted in North America in September 2010, around which time Jio

started testing it. “Like with most other new technologies, this one too took time to mature

and develop an ecosystem around it,” said a company official.

RJio also had to wait to get 4G-enabled handsets, which first surfaced in India only

around mid-2015. Since most handset vendors were offering only a handful of 4G devices

back then, Jio needed lower-priced devices to seed the market. “And that took some time as

well,” said the official.

More importantly, to have a data network for such a huge capacity, the challenge was to have

the fibre laid out across the country.

Laying out fibre isn’t easy because permissions take a very long time. The fibre right of way

(RoW) permissions needs to be regulated by multiple local agencies. The costs also differ

from area to area, making fibre-laying extremely expensive as well as time-consuming.

In the case of telecom towers too, the situation is somewhat similar, as each unit requires

permission from up to 40 authorities. RJio’s network is running on 92,000 telecom towers, of

which around one-third are owned by the company. It has forged partnerships with Aircel and

RCom for sharing their infrastructure.

Convergence’s Kolla said that over the past six years, in the project phase, Reliance Jio has

invested significantly in building its network, garnering the entire available spectrum and

laying the optic fibre network across the country.

According to the officials, “What other operators took 20 years to build (a pan-India

network), was done in six years by us.”

27
At the time, Reliance Jio has indicated that it would take three more years to achieve 100 per

cent network coverage. That still gives a lot of time for the likes of Bharti Airtel, Idea

Cellular and Vodafone, apart from regionally strong players such as Reliance

Communications, Tata Teleservices and Aircel to strengthen their footprint.

The revenue market share among telecom operators has become extremely skewed towards

the top three in the last few years. Bharti Airtel, Idea Cellular and Vodafone control nearly 75

per cent of the revenue market share among telecom players. As many as six to seven players

vie for the rest of the pie. To make a dent is clearly quite a challenge.

Bharti Airtel, Vodafone Idea still gives equal competition to Reliance Jio. However, the

telecommunication industry is undergoing through bad times and the companies are suffering

for the survival.

CHAPER 2

LITERATURE REVIEW

2.1 Introduction

The chapter of the literature review is considered as the most critical chapter of a study as

it directly contributes to enhancing the knowledge base of the researcher with regards to the

subject matter. In this chapter, the researcher focuses on searching and evaluating differently

available literature to gain a better understanding of the topic selected for investigation. The

28
viewpoints and work carried out by other researchers and authors are taken into consideration
in

this chapter. Here, different themes are developed by the researcher to gain in-depth
information

about the topic chosen for the study. The key themes covered in the present section of the

literature review are an overview of the Indian Telecom sector, the business model of
companies

in the telecom sector, the impact of Reliance Jio on other players in the industry and the ways
in

which Reliance Jio has dominated the Indian Telecom industry.

2.2 The overview of the Indian Telecom sector

As per the view of Purkayastha, Kumar & Lu, (2017) with the base of 1.19 billion

subscribers, the Indian telecom industry is the second largest telecom sector in the entire
world.

Furthermore, the industry has emerged as one of the most potential and rapidly growing
sector

within the country. On the other side of this, Panda & Shastri, (2016) has argued that India is
also

considered as the fourth largest application economy in the entire world. It can be stated that

there are two significant reasons because of which the telecom industry of India is growing

rapidly. The first and foremost factor or reason is linked with increasing demand of the

consumers in the country. The customers in the Indian market are now looking forward to a

telecom service provider who can offer services such s fast internet connectivity and efficient

mobile network at prices which affordable and convenient.

However, Panigrahi (2017) has critically argued that it is because of the increasing

competition which has forced the existing market players to offer high quality of services at
low

29
prices to sustain in the marketplace. Apart from this, the policies and regulations of Indian

government have also played a critical role in enhancing the growth rate of the Indian telecom

industry or sector. It has been identified that the policies have resulted in carrying out reform
in

the entire industry as the businesses were encouraged to improve their services in the best and

every possible manner (Amarawat et al. 2017). The Indian government has been very
supportivE

to mainly to the telecom sector, and this has further resulted in carrying out the smooth flow
of

all operations and activities in the sector.

According to Sharma & Pandey, (2015) the Indian government has taken almost every

possible step to boost up the performance and growth of the telecom industry. The statement
can

be justified by the fact that Indian government has developed effective strategies with an

objective to ensure easy accessibility of the telecom equipment.

In addition to this, the plans of government are also directed towards facilitating a

proactive and fair regulatory framework with an objective to ensure that customers in the

industry are provided with the best quality of services at prices which are affordable. As per
the

view of Dhar, (2016) the Indian government is supporting the telecom sector because it is

directly contributing to the growth and development of the country’s economy. The statement

can be justified by the fact that the Indian telecom is expected to create more than four
million

opportunities for employment in the country.

In the year 2018, the government of India is also looking forward to implementing a new

policy which is National Telecom Policy. The principal and most important objective behind
the

30
implementation of this policy is to bring different types of technological advancements in the

telecom industry. On the contrary of this, Aurn, (2018) has critically argued that at present the

Indian Telecom sector is passing through the most challenging era.

The author further explained that many companies have closed down their operations and

at the same time profits of many brands has started shrinking. Apart from this, cases such as
2G

scam have also resulted in affecting the overall operations of the Indian Telecom industry.
The

entry of Reliance Jio in the year 2016 challenged the business model of existing companies
and

players in the market. Jio introduce technology such as LTE, and this resulted in creating
several

issues and complications for other brands operating in the market.

2.3 Business model of companies in telecom sector

The business model is defined as the plan which is devised and implemented by

companies with an objective to carry out successful operations and activities in the long run.
The

business model is also defined as the plan which outlines the way in which different functions
of

a company will be carried out to attain desired goals and objectives. According to Dhar,
(2016)

companies operating in the Indian Telecom sector are operating with a different business
model

with an aim to carry out the desired flow of their operations and functions.

As per the view of Curwen & Whalley, (2018) Reliance Jio entered the Indian telecom

31
industry in 2016 and had resulted in giving intense competition and a significant challenge to
the

business model of existing companies in the marketplace. The services offered by Reliance
Jio

were innovative, and this further resulted in attracting people and existing customers of a
brand

such as Idea, Vodafone, BSNL, Airtel and other players in the telecom industry. Reliance Jio

business model emphasised on offering high speed and 4G data at prices which were very
cheap

and the strategy has supported the company in carrying out effective penetration in the Indian

market. The tariff plans introduced by Reliance Jio were innovative, and during the initial
stage,

they seemed to be unrealistic.

The entry of Reliance Jio was a shockwave to the entire telecom industry as the brand

started offering services such as free voice call. The overall business strategy of Reliance Jio
was

so compelling that it has resulted in making it very complicated for existing market players to

retain their customers. On the other side of this, Airtel, (2016) has critically argued that the

business model of Reliance Jio seems to unbelievable as it is not possible for a company to
make

sustainable profits by offering innovative services for free and at such low prices. However,
the

selected business enterprise has been backed up with an investment of more than 150000 INR

which has supported the brand in carrying out the smooth flow of all operations even after

offering services and products.

As per the view of Mittal, (2017) the business model of Reliance Jio also includes a

32
partnership with eight different global brands in the telecom industry which are MTS,
Milicom,

TeliaSonera, Orange, British Telecom, Rogers, Tim and Deutsche Telecom. The innovation
in the

business model of Jio is that it has introduced 4G and LTE technology which is entirely new
in

the Indian market. The brand has installed fibre cable in the country, and at the same time,

Reliance Jio has installed more than 90000 environmental friendly 4G towers in India. The

overall impact of these installations is that they have supported the company in providing
high

and lightning speed internet to the customers.

It has further supported the selected brand in enhancing the overall degree of customer

satisfaction to the best possible extent. The feature of Reliance Jio’s business model includes

affordability and high quality of services which has encouraged the customers of other brands
to

switch towards Reliance Jio (Saini & Khurana, 2018). The company has carried out massive

investment in the development of infrastructure and after this investment; Reliance Jio is

increasing its income level through the average revenue per user or the monthly bill which is

being paid by the user.

The difference between the business model of other telecom companies such as Idea,

Vodafone, BSNL, Airtel and Reliance Jio is that the other companies have voice customers,
but

Reliance Jio at present does not have voice customers. Therefore, Reliance Jio has nothing to

lose by offering free voice calls to its customers, and this has further provided a competitive
edge

to Jio over other network providers in the industry (Gupta, Tyagi & Upadhyay, 2018). The

33
average revenue per user for Reliance Jio is very high, and this has further provided the
company

with an opportunity to offer voice calls for free.

The business model of Reliance Jio is innovative because it has provided customers with

an opportunity to access 4G and high-speed internet network and eliminate the need for a
normal

voice call. Nowadays, different types of applications such as WhatsApp and Viber are now

available, and through the 4G network provided by Reliance Jio, customers can easily get

connected with their family, friends and other individuals for free (Ramachandran, Sebastian
&

Pillai, 2018). The company has been able to earn sustainable and adequate profits by
providing

customers with an opportunity to make data-based calls and charge the satisfactory amount

against the same.

2.4 The impact of Reliance Jio on other players in the industry

As per the view of Jose, (2017) the entry of Reliance Jio is considered as shockwave for

the entire Indian Telecom industry, and it became very complicated for the existing network

providers in the country to sustain in the marketplace. The impact of Jio’s entry in the India

market was so compelling that it had forced the other companies to emphasise on strategies
such

as merger and acquisition to deal with the intense competition provided by Reliance Jio. By
the

end of April 2017, Jio has acquired more than 109 million subscribers in the market, and this
has

further resulted in creating complications for other players in the industry.

It can be stated brand such as Airtel, Vodafone, Idea and BSNL started struggling even in

34
terms of making sustainable profits in the country. Offering almost all services at free of cost
is

that the strategy of Jio which has created a sensation in the marketplace and created issues for

other network providers in India. The impact of Jio’s entry on telecom industry of India is
that

the entry has resulted in creating a price war in the industry.

However, Gochhait & Tripathy, (2016) has critically argued that the rapid growth of Jio

within such short span of time in the Indian market has come at the cost of other brands or

network providers in the country. In August 2017, the top three market players in the telecom

industry of India have lost more than 5 million users, and this was the impact of Jio’s entry in
the

sector. It can also be expressed that declining profitability and customer base have emerged as

the two most significant issues for brands such as Airtel, Vodafone, Idea and BSNL because
of

Jio’s entry in the Indian market (Pattnaik, Lu & Gaur, 2018). The brand has been able to

penetrate the Indian telecom industry in the best possible manner through its strategy of
offering

deep discounts and low price services.

In August 2017, Vodafone has lost approximately 2.4 million customers whereas Idea has

lost 2.8 million customers. On the other side of this, Airtel which used to be the most
prominent

and most dominating player in the Indian Telecom industry has lost more than 200000
customers

by the end of August 2017. Over the past few years, the revenues generated by the Telecom

industry of India are no shifting towards Reliance Jio, and now the other players in the market

are struggling to make adequate profits.

The first and foremost impact of Reliance Jio on existing market players in Indian telecom

35
industry was that brands such as Airtel, Vodafone, Idea and BSNL started losing their
customers.

In the modern era, the only and most convenient way to sustain in the highly competitive

marketplace is to retain customers in every possible manner (Mahalaxmi & Kumar, 2017).

Customer retention is significant for almost every business operating in any industry as it

supports in carrying out the smooth flow of all operations and activities. However, it can be

critically argued that customer retention is not an easy task for companies because they are

required to offer innovative and high-quality services at competitive prices to attain the same.

Considering the case of mobile network providers such as Airtel, Vodafone, Idea and

BSNL, these brands failed to retain the customer because the services were not innovative
and at

the same time the pricing strategy employed by these brands was also very high (Dhar, 2016).

The impact of Jio on the market as mentioned earlier players can be understood by the fact
that

Jio has not only attracted the existing customers of these players but now the new customers
are

also going towards Jio. It means that the brand such Airtel, Vodafone, Idea and BSNL are
now

struggling not only in retaining their existing customers but these businesses are also facing

issues in attracting new customers

As per the view of Singh, (2017) declining sales, profitability and market share is also a

critical impact which Airtel, Vodafone, Idea, BSNL and other players in the market had
because

of the entry of Jio. Apart from products and services, the aggressive strategy of marketing and

advertisement of Reliance Jio has also played a significant role in affecting the overall

functioning of the Indian telecom industry.

The other network providers in the country are not able to generate even sustainable

36
profits, and this has further decreased their capability of carrying out aggressive marketing
and

promotion of their services and products (Elango, Dhandapani & Giachetti, 2018). The
impact of

Reliance Jio on other businesses operating in the industry is that it has resulted in carrying out

price drop in the entire telecom sector of the country. According to Kumar et al. (2018), the
entry

of Reliance Jio in the industry has forced the other network operators to reduce their prices. It

can be asserted that to sustain in the market, the businesses were not left with any other
options

to reduce their price. The strategy employed by Reliance Jio is highly capitalism, and this has

further resulted in carrying out a considerable impact on the entire telecom industry of the

country.

To sustain in the marketplace, Airtel has employed the strategy of carrying out the

acquisition of brand such as Telenor which was previously known as Uninor. The objective of

carrying out this takeover was to enhance the market share and gain the MHz band across the

entire telecom circle (Damle, Raval & Thenuan, 2016). On the other side of this, Idea and

Vodafone are also developing plans and strategies to merge with each other and become the
most

extensive network providers in the country.

2.5 The ways in which Reliance Jio has dominated the Indian Telecom industry

As per the view of Mir, (2017) the competition within the Indian telecom industry has

always been very intense and it was never easy for a new brand to enter and dominate the
market

within a short span of time. However, the mentioned above statement cannot be considered as

correct in context of brand such as Reliance Jio. The company has started dominating the
entire

37
industry within a period of one year and the performance of existing players in the industry
has

been affected greatly by the same.

According to Panigrahi, (2017) for a brand like Reliance Jio entry and carrying out

dominance in the sector was not an easy task but the strategies and action plan of the
company

were so effective that they have directly contributed to the success of the brand. Reliance Jio
has

also become popular for bringing in the much needed digital tsunami in the entire telecom
sector

of the country. To dominate the market, Reliance Jio has employed the strategy of loss
leadership

and as per this strategy, the brand started providing free voice calls to its customers and such

kind of offer was not provided earlier by the other players in the Indian Telecom industry. In

addition to this, the brand also offered nil roaming and a diverse portfolio of application
which

result in attracting more and more customers.

However, Curwen & Whalley (2018) has critically argued that Reliance Jio charged

customers only for the data consumed and the data was also offered on prices which were
super

competitive. The impact of implemented loss leadership strategy is that it encouraged

customers

of other mobile network providers to switch towards Reliance Jio.

On the other side of this, the strategy resulted in creating complications for brands such

as Airtel, BSNL, Idea and Vodafone to retain their existing customers and attract the new
ones.

As per the view of Gochhait & Tripathy, (2016) developing the largest 4G network in the
country
38
is the critical strategy which has supported Reliance Jio to dominate the Indian Telecom
industry.

The interesting thing here is that instead of targeting urban population, Reliance Jio has also

focused on targeting rural population which covers the major segment of the company. It can
be

also expressed that the Reliance Jio is the only mobile network provider in the company
which is

offering effective 4G coverage across PAN India.

The selected business enterprise has been able to dominate the Indian telecom industry

through its Data Sachet Strategy. According to this strategy, Reliance Jio is offering the
cheapest

data plan in the entire country and this has supported Jio in attracting more than desired
number

of customers. On the other side of this, Kumar et al. (2018) has critically argued that Reliance
Jio

is dominating the Indian Telecom industry through strategy which is no blackout days.

The other network providers in the country used to increase their tariff on festivals and

special occasions. However, considering the case of Reliance Jio, the company has focused
on

keeping its tariff same even on special occasions and holidays. The strategy has encouraged
the

customers in the industry to switch from other brands towards Reliance Jio and at the same
time,

the brand has been able to attain high degree of satisfaction among customers.

39
 CHAPTER 3

CHAPTER 3

3.0 RESEARCH METHODOLOGY

This focuses on the methodology of research; namely research design, area of the study,
population, sample size, sampling technique, sources of data, data collection techniques and
methods of data analysis.

3.1 Scope of the study:

The scope of work in this thesis mainly focuses on key market players involved in the imapct
of jio on telecom industr in India. These key players are constituted by the banks and mobile
operators, who would be involved in provisioning an imapct of jio on telecom industr service

40
to their customers. Within the thesis work, multiple mobile based payment services in India
will be described in detail. Their constituting mechanisms will be researched with a special
emphasis on their participating

entities, including the different actors involved in the system. The reader of this thesis should
also note that the research work focuses on the current telecom industry in India and
elaborates on the roles and responsibilities of the key actors with a strong focus on the
amalgamation of business and technology.

3.2 OBJECTIVES OF PRESENT STUDY:

1. To study the perception of people on imapct of jio on telecom industrs.

2. To understand the age group of people using imapct of jio on telecom industrs.

3. To study the advantages of imapct of jio on telecom industr with respect to its users.

4. To study the problems associated with various imapct of jio on telecom industrs
facilities.

5. To understand which imapct of jio on telecom industr application is more

userfriendly.

3.3 DATA COLLECTION METHOD/RESEARCH DESIGN

The aim of this chapter is to give clear and concise amount of the various methods and
procedures, undertaken by the researcher in carrying out this study.

According to Shajahan (2009), a research design is a logical and systematic plan prepared for
directing a research study. It specifies the objectives of the study and the methodology and
techniques to be adopted for achieving the objectives. It constitutes the blueprint for the
collection, measurement and analysis of data.

The research design adopted in this study is, a survey research design. A non - experimental
research design was used to collect and analyse data. A simple questionnaire was designed to
get significant information from the users of imapct of jio on telecom industr in Mira

41
-Bhayander. A qualitative research was used in order to gather in-depth information on the
Analytical study of user’s of imapct of jio on telecom industrs and challenges faced by them.

 Qualitative Method

This research method is employed in many descipline, especially in the social sciences. It
aims at gathering an in-depth understanding of human behaviour and the reasons that govern
that behaviour. It investigates the ‘why and how’ of decision making, not just what, where
and when. Qualitative research involves the interpretative, naturalistic approach to the
subject matter of research and gives priority to what the data contribute to important research
question or existing information. The opinion of the respondent based on their own beliefs
was used to arrive at decisions that will reflect the research on the Analytical study of user’s
of telecom industry and challenges faced by them.

This was done by circulating questionnaire and conducting interviews with college students
and youngsters of various locations in Mumbai. This enabled them to talk more about the
research subjects in their own language and their own terms. In end it enhanced proper
expression of their opinions regarding issues raised.

3.4 SAMPLING DESIGN/SAMPLING TECHNIQUE

The sample size of population of this research work consisted of hundred (100) respondents
in Mira-Bhayander selected on the basis of random sampling approach.

• Source of data and instrument used

The following were the sources of data that was employed during carrying out the research
work.

(a) Secondary data: The secondary source of data was obtained from the review of related
literature in other works, the researcher also constituted published and unpublished books,
journals, periodicals, news articles, and also internet for material.

(b) Primary data: The primary source of data was obtained through the use of structural
questionnaires and oral interview. Questionnaires and interview methods were used to collect
data. The data that was collected for this research work mainly came from Mira-Bhayander.
This research work relied more on the responses gotten from the questionnaires administered
and most of the conclusion was drawn from them.
42
3.5 DATA ANALYSIS TECHNIQUES:

The analysis of the data collection is completed systematically with the use of Ms Word and
Google forms. The tools used are:

● Bar chart:

A bar chart is a chart that represents a grouped day with rectangular bars. The bars can be
plotted vertically or horizontally. A vertical bar chart is sometime called as columns bar chart.
A bar chart is a chart that uses either horizontal or vertical bars to show comparisons among
the categories. Some bars graph represent bar clustered in group of more than one and other
show bars divided into sub parts.

● Pie charts:

A pie charts is a circular statistical graphics which is divided into illustrate numerical
proportions. In pie charts the arc length of each slice is proportional to the quantity it
represents. Area of each segment is of same percentage of the circle as a component represent
is of the whole data set.

Pie charts are also known as

● Circle diagram

● Circle graph,

● Pizza charts

● Sector graph etc.

3.6 Limitation of the study

• The research study is limited to analyze the factors responsible for users of imapct of
jio on telecom industrs and data is collected from the respondents living in Mira- Bhayander
area only

43
• The research was conducted within a limited duration . so a detailed and
comprehensive study could not be made.

• The sample was confined to hundred responded so the study regarded as fool proof
one.

• The finding and conclusion is based on knowledge and experience of the respondent.

• Though the online data collection is convenient and cost effective method , it limits
the interaction of respondent with the enumerator.

CHAPTER 4

4.0 Data Analysis and Interpretation

4.1

44
4.2

4.3

45
4.3

46
4.4

4.5

47
4.6

4.7

48
4.8

49
4.9

50
4.10

4.11

51
4.12

CHAPTER 5

52
FINDINGS, CONCLUSION

5.1 INTRODUCTION

This chapter present the findings of the study, conclusion and at the end a researcher Gives
recommendations of the study. Section highlights on the findings of the study that is what a
researcher found in the field. Section presents conclusion drawn by a Researcher from the
findings and lastly section shows researcher recommendations On the study.

5.2 FINDINGS

Introduction

 Indian Telecommunications Industry is growing at an exponential rate and is expected to

be one of the leading growth drivers of the Indian economy. Reliance Jio has revolutionized
the industry and has completely changed the way the industry works.

 The most satisfying factor amongst all users of Jio was analyzed as Network and Mobile
data.

 Consumers were not satisfied with the Customer care that Jio offers, Jio should focus on
improving the customer care services that it has to offer.

 The consumers believe that the performance of Jio impacts the price movements of
Reliance share.

 The consumers perceive that Jio has led to a digital transformation in the Indian Telecom
Industry

 Out of the total users of Jio, maximum number of users of Jio fall in the age gap of 15 to
20, Jio should focus on this age gap as this is the age when teenagers tend to spend more on
entertainment and features.

 Reliance Jio should now focus more on the rural areas of the country, with the literacy
levels improving and the need for advancement arising in rural areas, it is a perfect
opportunity for them as more and more people adapt to 4G and use more and more of data

Strategies Adopted by Competitors

53
 Most of the competitors took the way of mergers and acquisition while some went
bankrupt and were forced to exit. Competitors had to change their strategies completely and
adopt new ones to survive in the market after Jio launched its services. Many competitors
have now shut down operations or sold their assets due to the increased competition with only
3 major stakeholders left in the industry.

 With the launch of Jio of companies witnessed a decline in their revenues to levels as low
as -300% per year.

 With greater network coverage and Internet packages, at cheap rates, the consumers
should try and experience the Mega fish in the market that is Jio

 The average Jio user tends to spend 386 rupees per month while an Airtel user tends to
spend on an average of 500 per month and Vodafone-Idea user spends 444 per month, with
Jio being the cheapest, it has an upper hand over the industry.

Effect of Reliance Jio on Consumers Consumers have been the absolute winners after the
entry of Reliance Jio with tariffs rates hitting rock bottom and data consumption increasing
multi-fold.

5.3 CONCLUSION

The after effects of launch of Jio is like a tsunami, it completely swallows anything that
comes in front of it, just like that Jio swallowed every competitor, taking the life out of them,
forcing them to move or exit or merge. Data, data in this era is the new Oil. Ancient
civilization prospered when there was a river, the modern civilization prospers when there is
information available. As rightly said in a speech by Mr. Mukesh Ambani, information will
lead to India out of poverty, out of misery thus it is like Oil. With the increase in the data
consumption and every human being now relying and getting addicted to internet, Jio has
created a perfect opportunity for itself. By enticing free calls for the end users and then
tempting the users for free data in the beginning and now cheap data, once the habit is formed
it won‟t be difficult for them toretain the consumers. Jio has already announced its future
plans of creating huge libraries of 10 million songs, 6000 movies and 60000 video songs, 1

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lakh episodes of TV shows in more than 10 languages. We can derive that in the coming days
there can be massive investment in technology driven sectors and entertainment sector with
each and every Jio user having access to 4G data with as low as 50 per month and thus Jio is
now unstoppable. It is a bull which has been now set free in the industry to offer anything
they want at the lowest price. From all the findings and analysis, we conclude that after the
launch of Jio the economic structure of the market is still the same, but the level of
competition has grown unexpectedly. If Jio continues at this pace, it will completely redefine
the Telecom sector in India and a new Post Jio era will be formed in the sector where
anything and everything is possible.

BIBLIOGRAPHY/REFERENCES

https://scholar.google.com/
www.google.com
www.bing.com
https://in.yahoo.com/
https://duckduckgo.com/
https://www.wikipedia.org/

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