UNIVERSITY OF MUMBAI

IMPACT OF JIO ON TELECOM INDUSTRIES

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE
DEGREE
OF
MASTERS OF COMMERCE
ADVANCE ACCOUNTANCY
DEPARTMENT OF COMMERCE
BY
BIHARI GOBIND SINGH
UNDER THE GUIDANCE OF
DR. KINNARRY THAKKAR
UNIVERSITY OF MUMBAI, DEPARTMENT OF COMMERCE
KALINA, MUMBAI
MUMBAI UNIVERSITY
2019-2020

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DECLARATION BY LEARNER
I, the undersigned, Mr. Bihari Gobind Singh, hereby, declare that the work
embodied in this project work title, “IMPACT OF JIO ON TELECOM
INDUSTRIES” forms my own contribution to the research work carried out under the
guidance of Dr. Kinnarry Thakkar. This is a result of my own research work and has
not been previously submitted any other university for any other degree/diploma to this
or any other university. I, hereby further declare that all the information of this document
has been obtained and presented with academic rules and ethical conduct.

Name and Signature of Learner

Certified by
Name and Signature of the Guiding Teacher

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 UNIVERSITY DEPARTMENT OF COMMERCE
UNIVERSITY OF MUMBAI
KALINA, MUMBAI

CERTIFICATE

This is to certify that Mr. Bihari Gobind Singh has worked and duly completed his
project work for the degree of master in Commerce under the faculty of Commerce in
the subject of Advance Accountancy, entitled, “Impact of Jio on Telecom Industries”
under my supervision. I further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted previously for any degree or
diploma of any university.

It is his own work and facts reported by his personal findings and investigations.

Name and Signature of Guiding Teacher

Date of Submission

(External Examiner)

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Acknowledgement

This dissertation has been prepared with the great many people who have
contributed to its production. We owe our gratitude to all those people who have made
this dissertation possible and because of whom our experiences have been one that we
will cherish forever.

First and foremost, I would like to thank GOD for his unconditional guidance and
wisdom as I make our research.

Our gratitude is to my mentor Dr. Kinnarry Thakkar and I have been amazingly
fortunate to have mentored who gave me freedom to explore my own and guidance
support to recover when my step faltered. She taught us how to question thoughts and
express ideas. Her support helped me to overcome many crisis situations and in
finalizing this project.

I would like to thank my parents, family who provided me advice and financial support.

Many friends have helped me stay same through these difficult periods. Their
support and care helped me overcome setbacks and stay focused on my study. I greatly
value the friendship and deeply appreciate their belief in me.

I am also thankful to all the students who contributed in providing me with a valid data.

Most importantly none of this would have been possible without my friends, love
and patience. Our immediate Department of Commerce, Mumbai University family, to
whom this project is dedicated to, has been a constant source of love, concern, support
and strength. I would like to express my heartfelt gratitude to my mentor as she aided
and encouraged me throughout this endeavor.

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 Table of Content

Certificate …………………………………………………………………………..2
Declaration of Student ………………………………………………………….…..3
Acknowledgement…………………………………………………………………..4
Table of Content…………………………………………………………………….5
Abstract……………………………………………………………………………...7
Executive Summary…………………………………………………………………8
Chapter 1- Introduction………………………...…………………… ….... 9
Chapter 2 – Ventures, collaborations
and future projects ……………………………………… …..10
2.1 Apps owned by Jio………………………………………… …..10
2.2 Smart phones and
Other caller services . .……………………………………… ...11
2.2.1 LYF smart phones. …………………………...….11
2.2.2 Jio Phone………….……………………………..11
2.3 Other services…………………….…………………………....11

2.3.1 4G Broadband Services ……………………... … 11

2.3.2 Jio Net…………………………………………... 12

2.3.3 Jio Giga Fiber……………………………………12

2.3.4 JioFiber.. …………………………………….. …12

2.3.5 JioFi...…………………………………………....12

2.4 Other Collaborations …………………………………………12

2.4.1 Star India ……………………………………….12
2.4.2 Google… …………………………………….…..13
2.4.3 Cisco ……. .…………………………………...13
2.4.4 Alliances … …………………………..…….. …13
2.5 Future Projects…………. ………………………..13
2.5.1 5G Network….………………………………..….14
2.5.2 Jio Phone 3……………………………………. …14
2.5.3 Jio IoT services………………………………..….14

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Chapter 3 SWOT Analysis…..…………………………………………….15
3.1 Strength………………………………..…………. 15
3.2 Weakness.. ……………...………………….……. 15
3.3 Opportunity………………. ……………………...15
3.4 Threats………………...…………………….…….16
Chapter 4 Other Major players in Telecom industry……..………….…17
4.1 Bharti Airtel……………...……………………… .17
4.2 Vodafone………………………………………….19
4.3 Idea…….………………………………………….20
Chapter 5 What differentiates Jio from its peers? .......................................21
Chapter 6 Impact on other Telecom industry………………………………22
Chapter 7 Literature Reviews…………………………………………….24
7.1 Introduction………………………………………..24
7.2 The overview of the Indian telecom sector………..24
7.3 Business model of companies in Telecom sector....24
7.4 The impact of Reliance Jio on other players …. ....26
7.5 The ways in which Reliance Jio has dominated
Telecom Industry ………………………………..29
Chapter 8 Research Methodology……… ………………………………..31
8.1 Introduction………… …………………………….31
8.2 Research Approach………………….…………….31
8.3 Research Design…………………………………...31
8.4 Sampling……………….………………….……….31
8.5 Data Collection…………… ………………….….32
8.5.1 Primary Data…………...…………….32
8.5.2 Secondary Data ……………………...32
8.6 Data Analysis………………………….…………. .32
8.7 Significance of the study……………….………... .32
8.8 Research objectives………………….………….. ..33
8.9 Hypothesis………………………….…………… .33
Chapter 9 Results……………………………………….…………… ..….34
9.1 Introduction……………………….…………….….34
Chapter 10 Research Findings and Suggestions……………………….. …49
Chapter 11 Limitation………………………………………………… ……50
Chapter 12 Conclusion………………………………………………….. ….51
Chapter 13 References ……………………………………………….….. …52

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Abstract
Telecommunication industry is one of the most emergent industries which face evolved
very speedily in last decade. Currently India is the world‟s second largest
telecommunication market and still growing. Mobile economy in India is increasing very
fast and will add significantly to India‟s GDP. Indian telecommunication market is an
excellent opportunity for network providers from native and exogenous Players. Both
Indian network providers‟ international providers receive considerable market share in
the Indian mobile industry. Recently Reliance Jio has gave a big jolt to Indian telecom
industry, schemes like free internet, free calling, 4g network provide a serious threat to
others. Reliance Jio emerge a new choice and other service providers face a new kind of
challenge and find difficult to cope up with new circumstances.

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Executive Summary
The study is based on Reliance Jio Infocom Limited which is popularly known as
Reliance Jio. The main aim of the research is to identify the overall impact of Reliance
Jio on the telecom industry of India. With the base of 1.20 Billion subscribers, the Indian
telecom industry is second largest telecom sector in the world. 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 of
Reliance Jio also includes a partnership with eight different global brands in the telecom
industry which are
The entire analysis carried out has supported in knowing that the overall telecom
industry of India has become very competitive and large number of players are operating
in this market. Different companies are introducing different plans so as to retain
customers and satisfying their overall needs in the best possible manner.

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 CHAPTER 1 - INTRODUCTION

Reliance Jio Infocomm Ltd (popularly known as Jio), is an Indian mobile network
operator launched commercially on September 5, 2016 owned by Reliance Industries
and headquartered in Mumbai, Maharashtra. It operates a national Long-Term Evolution
(LTE) network with coverage across all 22 telecom circles. Jio does not offer 2G or 3G
service and instead uses voice over LTE (VoLTE) to provide voice service on its
network. The launch of Reliance Jio has caused a revolution in the telecom industry.
According to Telecom Regulatory Authority of India (TRAI) there are 1.20 billion
mobile- phone subscriptions in India. The growth is especially pronounced in rural areas,
where there are now over 500 million wireless subscriptions, roughly 80 million more
than there were before the company formally began its operations. As more Indians gain
phone subscriptions, more are coming online. A 2017 report by the Internet and Mobile
Association of India estimated that nearly 50 million Indians gained internet access
between December 2016 and December 2017, allowing many of them to surf the web,
send WhatsApp messages and stream videos for the first time.
Jio is not just a telecom network; it is an entire ecosystem that allows Indians to
live the digital life to the fullest. This ecosystem consists of powerful broadband
networks, useful applications, best-in-class services and smart devices distributed to
every doorstep in India. Jio‟s media offerings include the comprehensive libraries and
programs of recorded, and live music, sports, live and catch up television, movies, and
events. Jio is about creating connected intelligence for 6 billion global minds to unleash
the power of a young nation.
Shri. Mukesh Ambani, Chairman, Reliance Industries Ltd. says, "Jio is about
bringing people together, safely and securely. It is about inspiring people to join a
movement – the digital India movement. Jio is about you and your family, friends,
community and all Indians together in a movement to embrace and win in the digital
world.

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 CHAPTER 2 – VENTURES, COLLABORATIONS
AND FUTURE PROJECTS
Jio is a company which has launched and continues to launch new ventures every time
into the market and be in the nascence of the market and thus extract the initial boom of
consumer response at the most all the time. This chapter deals the present running
projects, services, collaborations.

2.1 Apps owned by Jio

In May 2016, Jio launched a bundle of multimedia apps on Google play as part of its
upcoming 4G services. Many apps were launched late too. 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:

1. JioChat – instant messaging app.

2. JioXpressNews – e-news app.
3. Jio NewsPaper - News paper app.
4. JioNet - App connecting to Jio wifi.
5. JioHealth Hub - Free accssto test, doctors and reports.
6. JioTV ( Foremerly known as JioPlay) - Jio users can watch 624 TV channels free
with JioTV.
7. JioCinema - Online HD video library.
8. JioCloud - Cloud based backup tool.
9. JioMags - E-reader for magazines.
10.Jio Money – Online payments/wallet app.
11.JioSaavn ( earlier, JioMusic) - For online and offline music streaming in English
and Indian languages.
12. JioSecurity - Security app.

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 13. Jio4GVoice ( earlier, JioJoin) - VoLTE phone simulator
14. My Jio - Manage Jio account and digital services associated with it.

2.2 Smart phones and other caller devices

Jio has released some phones extensively with lots of offers aiming average
common man and has grabbed market.

2.2.1 LYF smartphones

The company launched its LYF smart phone series entering into an agreement
with domestic handset maker Intex to sypply 4G handsets capable of voice over LTE
( VoLTE)

2.2.2 Jiophone

On 21 July 2017, Jio introduced its first affordable 4G feature phone, powered by
KaiOS, named as JioPhone. The price announced for it was Rs. 0 with a security deposit
of Rs. 1500 which can be withdrawn back by the user by returning the JioPhone at Jio
stores only after three years.

JioPhone 2: A second model with a QWERTY keyboard, as well as Facebook,

Whatsapp and YouTube applications, was released in July 2018 for Rs. 2,999.

2.3 Other services

Various services are also put up by Jio like,

2.3.1 4G Broadband services

The company launched its 4G broadband services throughout India in September

2016. Jio offer 4G data and voice services, along with peripheral services like instant
messaging and streaming movies and music.

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2.3.2 Jionet

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, Jabdalpur,
Dewas and Ujjain in Madhya Pradesh, select locations of Mumbai in Maharastra,
Kolkata in West Bengal, Lucknow in Uttar Pradesh, Bhubaneswar in Odisha, Mussoorie
in Uttarakhand.

2.3.3 Jio Giga Fiber

Jio launched Jio Giga Fiber on 15 August 2018 which offers high speed
broadband, landline and DTH services at reasonable prices.

2.3.4 JioFiber

The current offer is JioFiber preview offer which gives ultra-high speed internet
up to 100Mbps free for a limited preview period & a complementary access to a host of
Jio‟s premium apps.

2.3.5 Jiofi

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

2.4 Other Collaborations.

2.4.1 Star India

Reliance Jio and Star India have signed a 5-year partnership in 2018 to broadcast
all televised cricket matches (T20, one-day international and test matches and BCCI‟S
domestic competitions) on JioTV and Hotstar. The service offers free to Jio prime users,
but customers of Hotstar have to purchase a premier membership, which cost Rs. 199
per month or Rs 999 per year to watch this content.

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2.4.2 Google

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

These phones will run exclusively on Jio network.

2.4.3 Cisco

Jio has embraced mass-scale automation during the bneuild phase of the network
using a robust, scalable, micro services based purpose built platform by Cisco for
network rollout.

2.4.4 Alliance

In February 2016 Jio announced a global alliance of Mobile network operators which
include:

1. BT Group
2. Deutsche Telekom
3. Millicom
4. Orange S.A
5. Rogers Communications
6. MTS
7. Telia Company
8. Telecom Italia

2.5 Future Projects

Following are speculated future projects expected from Jio.

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2.5.1 Jio 5G Network

5G is still years away to be available at a mass scale, but Reliance Jio has been
working on the next-generation network for its consumers. A few reports suggest that
the company may launch 5G services as soon as six months once the 5G spectrum is
auctioned out to offer 5G ready LTE networks.

2.5.2 Jio Phone 3

The successor to the Jio Phone 2 is expected at the Reliance Jio AGN. The third
generation Jio Phone3 may see a major jump in terms of hardware and software over the
existing Jio Phone models. Reliance Jio have sold more than 50 million original Jio
Phone units till 2019

2.5.3 IOT Services

Reliance Jio‟s Internet of Things ( IoT) platform will be commercially available

from January 1, 2020. Jio says that it has developed an innovative service on its pan
India 4G network called Narrowband Internet-of-Things or NBIoT. Using this service
with smart sensors whether residential, industrial or public, the company is looking to
connect India like other countries.

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 CHAPTER 3 SWOT ANALYSIS

3.1 Strengths

1. Reliance industry is strong parent company backed up Mukesh Ambani.

2. Company has begun with 4G services with no tariff. It has strong financial
capability to stand with initial losses.
3. Strong brand image due to excellent marketing and advertising strategy.
4. It has brand ambassadors like Shahrukh Khan who has deep influence on masses.
5. It has technological advantages i.e. 4G LTE services with VoLTE.
6. It has built strong national network with investment of around $20 billion.
7. Jio apps are offering wide range of features like movies, shopping, chat, cloud,
games etc. under one umbrella.

3.2 Weakness

1. Advertisement showing PM picture cause raise of new controversies.

2. Mobile number portability is not very smooth and jio is expected large number of
customers would migrate from existing services providers.
3. Company has to depend upon data consumption for profitability due to making
voice calling free.
4. Jio made late entry which could make difficult to increase market share.
5. Earlier company‟s telecom venture CDMA was unsuccessful/

3.3 Opportunity

1. The company can offer telecom services at competitive rates.

2. India has huge market for telecom services because of large scale availability of
smart phones.
3. At international market company has huge opportunity in many developing
countries.

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 4. Due to technological edge company can also promote exclusive services to
consumers.
5. Company reliance communication has a huge infrastructure over the country.
6. Lower data tariff plans which further attract advertisement industry with option of
e-marketing.

3.4 Threats

1. People would not like to use Jio after free services are over.
2. The initial phase of rapid increase it is very difficult to maintain a large consumer
base to cross breakeven point.
3. Existing strong competitors having broader and loyal consumer base would
though to compete.
4. Indian telecom market is very duet to existing big players like Airtel, Vodafone,
Idea etc.
5. Changing government policies would also create uncertainty in market.
6. Fast upgrading technology from 2G to 3G to 4G and next generation 5G
approaching shortly, needs huge investment plan to remain in market.

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 CHAPTER 4 OTHER MAJOR PLAYERS IN TELECOM INDUSTRY

4.1 Bharti Airtel

Bharti Airtel Limited is a leading global telecommunications company with

operations in 18 countries across Asia and Africa headquartered in New Delhi, India.
Bharti Airtel ranks amongst the top 3 mobile service providers globally in terms of
subscribers. The company offers an integrated suite of telecom solutions to its enterprise
customers, in addition, to provide long-distance connectivity both nationally and
internationally. In India, the company‟s product offerings include 2G, 3G, and 4G
wireless services, mobile commerce, fixed line services, high-speed DSL broadband,
IPTV, DTH, enterprise services. In the rest of geographies, it offers 2G, 3G, 4G wireless
services and mobile commerce. Bharti Airtel had over 403 million customers across its
operations at the end of March 2019.

1995: Bharti Cellular Limited ( BCL ) was formed to offer cellular services under the
brand name Airtel.
2010: Airtel launched 3G network service.
2014: Airtel launched 4G network service.

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Impact on Airtel
 The country‟s top operator Bharti Airtel suffered a consolidated net profit drop of
76.5 per cent to Rs 343 crore from Rs 1,462 crore in 2016.

source:https://www.business-standard.com/article/companies/reliance-jio-effect-bharti-airtel-s-net-profit-down-76-to-rs-343-crore-
117110100046_1.html

 Bharti Airtel lost 32.89 lakh subscribers pulling its subscriber base down to
around 32.19 crore.

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4.2 Vodafone

Vodafone is India's leading telecom service provider. The Company provides pan
India Voice and Data services across 2G, 3G and 4G platforms. With the large spectrum
portfolio to support the growing demand for data and voice, the company is committed
to deliver delightful customer experiences and contribute towards creating a truly
'Digital India' by enabling millions of citizens to connect and build a better tomorrow.
The Company is developing infrastructure to introduce newer and smarter technologies,
making both retail and enterprise customers future ready with innovative offerings,
conveniently accessible through an ecosystem of digital channels as well as extensive
on-ground presence. The Company is listed on National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE) in India.

Impact on Vodafone
Vodafone posts loss of $6.3 billion in FY2017, driven by tax changes and 3.7
billion impairments at its Indian division due to the Idea-Vodafone merger necessitated
by Reliance Jio entry in the telecom market.

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4.3 Idea

Idea Cellular is an Aditya Birla Group Company, India‟s first truly multinational
corporation. Idea is a pan-India integrated GSM operator offering 2G and 3G services,
and has its own NID and ILD operations, and ISP license. Using the latest in technology,
Idea provides world-class services delivery through the most extensive network of
customer touch points. Idea won the best Brand Campaign at the esteemed World
Communication Awards 2011. It also won 3 awards at the ET Telecom Awards 2012, in
customer Experience Enhancement, Excellence in Marketing and Innovative products,
respectively.

Impact on Idea
 Idea loses 6.4 million mobile data customers in the fourth quarter.
 Non-Voice revenue ( including data ) contribution to the „overall service revenue‟
fell to 24.9%
 Mobile data revenue contribution declined to 18.3% ( vs 20.2% in Q3FY2017)

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 CHAPTER 5 WHAT DIFFERENTIATES JIO FROM ITS PEERS?

 Loss Leader strategy – Offering free voice calls for a lifetime, nil roaming charges
and a wide portfolio of apps; charges consumers only for data usage under super
competitive plans.
 Largest 4G network ever – Over 100 Mn subscribers across 18,000+ towns and
cities and 2 Lakhs villages. Plans to reach 90% of India‟s population by March
2017. Moreover, Jio is the only company with Pan India 4G coverage.
 Wide range of affordable 4G VOLTE smart phones under its “LYF” brand.
 The “Data Sachet” strategy – cheapest data plan is available for Rs. 19 a day.
 No blackout day i.e. Jio won‟t raise the tariff on special occasions and festivals.
 Walking out working – Aadhar based instant SIM activation at Reliance Digital
and Xpress Mini store.

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 CHAPTER 6 - IMPACT ON TELECOM INDUSTRY

 Market shares of other major players in the industry, such as Airtel, Vodafone and
Idea fell abruptly. They were force to re-think and reduce their tariffs. Cost of data
cut down to less than Rs. 15/GB from at least Rs. 250/GB.
 Bharti Airtel, Vodafone and Idea cellular petitioned a plea to TRAI regarding the
tariff rates set by Jio. TRAI dismissed the motion.
 The state-run telecom operator, Bharat Sanchar Nigam Limited (BSNL) also cut
down their rates in an unprecedented move. They also started to use their
underutilized 7 lakh kilometers of fiber network and reduced internet usage
charges.
 Jio‟s explosive growth did not have a negligible impact on the overall take-up
rates of existing companies, although new subscriptions for 3G and 4G services
slowed down somewhat. Large operators continued to expand their base with
roughly the same pace, while the smaller providers saw a slight downturn. The
trend suggests that many of Jio‟s subscribers had signed up to their services
alongside plans with other providers to capitalize on the free services while they
were available.
 To keep up with the competition, mergers and consolidations took place among
players. The major shareholders reduced from about twelve into three large
private players – Reliance Jio, Bharti Airtel and Vodafone Idea - accounting for
more than 90% of revenue and 80% of spectrum holding.
 Apart from declining financial health of incumbents, there have been massive job
losses owing to mergers and sector consolidation with a major shedding from
Vodafone and Idea Cellular duo.
 The monthly data usage per smart phone (GB/month) in India is expected to go up
to 13.7 GB by 2023 from 5.7 GB in 2017. The total mobile data traffic per

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 Month in India expected to grow five times from 1.9 EB to 10 EB by 2023,
according to data from Ericsson. The adoption of 4G has been made possible only
after the arrival of Reliance Jio.
 Almost all smart phones now shipped are 4G – VoLTE enabled.
 There has been an increase in investment and revenue fro video-streaming
websites such as Hotstar and Netflix.

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 CHAPTER 7 - LITERATURE REVIEW

7.1 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, focuses based on searching and evaluating
differently available literature to gain a better understanding of the topic selected for
investigation. The view points and works carried out by other researchers and authors
are taken into consideration in this chapter.

7.2 The overview of the Indian telecom sector.

As per the view of Purkayastha, Kumar & Lu, (2017) with the base of 1.9 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
Panda & Shastri, (2016) 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 linke

d with increasing demand of the consumers in the country. The customer in the Indian
market are now looking forward to a telecom service provider who can offer services
such as fast internet connectivity and efficient mobile network at price which affordable
and convenient.

7.3 Business model of companies in Telecom sector

The business model is defined as the plan which is implemented with an objective
to carry out successful operations and activities in the long run to attain desired goals
and objectives.

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 Curwen & Whalley, (2018) Reliance Jio entered the Indian telecom 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 Airtel, Vodafone, BSNL Idea, and other players in the
telecom industry. Reliance Jio business model emphasized 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.

On the other hand 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.

As per view of Mittal, (20170 the business model of Reliance jio also includes a
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.

Saini & Khurana, (2018) the features 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. 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.

Gupta, Tyagi & Upadhyay, (2018) the different between the business model of
other telecom companies such as Airtel, Idea, Vodafone that companies have voice
customers, but Reliance Jio at present does not have voice customers. Therefore,

25
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.

Ramachandran, Sebastian & Pillai, (2018) 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.

7.4 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 Indian market was so compelling that it had forced other companies
to emphasis 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 increasing
complications for other players in the industry.

It can be stated brands such as Airtel, Vodafone, Idea started struggling even in
terms of making sustainable profits in the country. Offering almost all services free of
cost is that the strategy of Jio which has created a sensation in the marketplace and
created an issue for other network providers in India. The impact of Jio‟s entry in the
telecom industry of India is that entry has resulted in creating a price war in the industry.

Gochhait & Tripathy, (20160 argued that the rapid growth of Jio within such a
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

26
industry of India have lost more than 5 million users, and this was the impact of Jio‟s
entry in the sector.

Pattnaik, Lu & Gaur, (2018) 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.

Mahalaxmi & Kumar, (2017) the first and foremost impact of Reliance Jio on
existing market players in the Indian telecom 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. 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.

Dhar, (2016) 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. 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 as Airtel, Vodafone, Idea, are now struggling not only in retaining their existing
customers but these businesses are also facing issue in attracting new customers.

As per the view of Singh, (2017) declining sales, profitability and market share
are also a critical impact that Airtel, Vodafone, Idea 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.

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 drops in

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the entire telecom sector of the country. The other network providers in the country are
not able to generate even sustainable profits, and this has further decreased their
capability of carrying out aggressive marketing and promotion of their services and
products.

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.

Damle, Raval & Thenuan (2016), to sustain in the marketplace, Airtel has
employed the strategy of carrying out the acquisition of brands 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. 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.

By Gaurav Dua, having surpassed 119 crore subscribers on September 2018, the
Indian wireless industry is now the second-largest in the world by number subscribers
and ranks second in terms of total internet users. Over the past couple of years, the
Indian telecom industry has been going through a paradigm shift from a voice-centric
market to a data-centric market.

Therefore, the next growth opportunity will be on mobile internet - where the
industry is likely to add 500 million new internet users over the next five years given the
availability of affordable smart-phones and lower data cost. However, intensified
competition following the entry of Reliance Jio (in 2016) has put incumbent financials
under stress and resulted in consolidation in the industry.

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 Post-Idea-Vodafone merger, the industry has consolidated into a three private
players market. We expect the competitive intensity to continue till Jio achieves revenue
market to continue till Jio achieves revenue market share equal or exceeding that of
Bharti Airtel (NSE 0.70%). The improvement of ARPU levels could start in FY2020, as
the sector transforms into ¾ players market. Given the convergence ( telecom, media,
and technology) starts to play out next along with rising mobile internet users, telecoms
have started shifting beyond traditional telecom business to wider digital consumer
space such as content, mobile banking solution, etc.

7.5 The ways in which Reliance Jio has dominated the Indian telecom industry

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.

Curwen & Whalley (2018) have critically argued that Reliance Jio charged
customers only for the data consumed and the data was also offered on prices that 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.

Gochhait & Tripathy, (20160 developing the largest 4G network in the country in
the critical strategy which has supported Reliance Jio to dominate the Indian telecom
industry. The interesting this here is that instead of targeting the urban population,
Reliance Jio has also focused on targeting the rural population which covers the major
segment of the company.

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 CHAPTER 8: RESEARCH METHODOLOGY

8.1: Introduction

It is one of the most essential parts of the study that takes into consideration the
different tools and techniques adopted for conducting the overall study in the most
effective manner. Different areas are covered in the research methodology, research
design, data collection, data analysis, research limitations, etc. Each part of the research
methodology has its importance and it brings favorable results for the entire study in the
best possible manner. The objective of the methodology chapter is to provide
experienced and proper information to replicate the study.

8.2: Research Approach

For conducting the study in the most effective manner research approach has been
adopted where the entire study has been carried out specifically from the point of view
of reliance Jio to know how it has affected the entire telecom industry of India.

8.3: Research Design

Design is the blueprint of the study and it is the framework of the research to
answer the key research questions of the research. With the help of the research design,
it is possible to know about the real techniques that are undertaken in the research.
Considering the nature of the present study where the main aim of the study is to know
the real impact of the Reliance Jio on the telecom industry of India and for
accomplishing this aim descriptive design has been adopted as through this design it is
possible to understand about the topic in the proper manner

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8.4: Sampling

This part is linked with the selection of the sample size to obtain an adequate
amount of data that is beneficial for the entire study. The main reason due to which
purposive sampling technique has been undertaken as through this the data from the
respondents is obtained based on the main purpose behind conducting the study. A
group of respondents is surveyed through the sampling method and a list of data is
obtained through the sampling survey. 100 respondent responses were selected based on
random and non-random sampling techniques to know the perception of the respondents
on Reliance Jio.

8.5: Data collection

Primary data – Primary data means the data collected for the first time. In this research,
the primary data source is a questionnaire method. With the help of Google forms the
data is collected from 67 respondents.

Secondary Data – Secondary data are those data which are already collected by
different researchers. In our research we collect secondary data from various research
papers, articles on newspapers, magazines and from internet.

8.6 Data analysis

This part is linked with analyzing information to know the actual results obtained
after conducting overall study. In the study data analysis techniques have been
undertaken where the results have been shown with the help of pie charts for better
understanding.

8.7 Significance of the study

The study is significant because it will highlight the key strategies which have
been employed by Reliance Jio within the Indian market to successfully dominate Indian
telecom industry. It can be asserted that data from different primary and secondary

31
sources will be collected in this study to understand the innovative business model and
strategies adopted by Reliance Jio to carry out its business operations in the highly
competitive telecommunication industry of the country. The study is significant in an
academic context as it will help the reader to understand the value of innovation in
today‟s corporate era.

8.8 Research Objective

 To gain an overview of the present situation of the Indian Telecom industry.

 To identify key attributes in the business model of Reliance Jio.
 To study the trend of market share of Jio & other service providers.
 To assess the key strategies of Reliance Jio to capture market share

8.9 Hypothesis

There is an increasing trend in the market share of Jio vis-a-vis other service
providers.

H2
Reliance Jio observed various key strategies to enhance its market share.

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 CHAPTER 9: RESULTS

9.1: Introduction

The chapter of data analysis and findings is considered as the most critical chapter
in the study. In this section, different tools and techniques are employed to evaluate the
information collected from different sources. Here the data collected has been presented
with the help of different charts and tables and analysis of the same has been carried out
using different themes.

Theme 1: Age

Age % Count
Below - 20 13.80 54
20-30 83.10 9
30-40 3.10 2
Above- 40

Interpretation: It has been analyzed that the majority which is 83.1% of the total
respondents were within the age group of 20 to 30. In addition to this, 13.8% of
respondents were below 20 years of age and the remaining 3.1% were above 30 years of
age.

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Theme 2: Gender

Gender % Count
Male 62.1 41
Female 37.9 25
Prefer not to say

Interpretation: From the data collected it has been identified that 41 of the total
respondents were male whereas remaining 25 were female.

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Theme 3: Are you aware about Jio?

Are you aware about Jio? % Count

Yes 84.80 56
No 9.10 6
Maybe 6.10 4

Interpretation

 84.8% of total respondents are aware about Jio.

 9.1% respondents are Not aware about Jio.
 6.1% respondents may be or may not be aware about Jio.

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Theme 4: Which operator's service do you use?

Which operator‟s service do you % Count

use?
Airtel 27.3 18
Reliance Jio 62.1 41
Vodafone 7.6 5
Idea 1.5 1
BSNL 1.5 1

Interpretation:

 41 of total respondents are using Reliance Jio.

 18 respondents are using Airtel.
 5 respondents are using Vodafone.
 1 respondent is using Idea.
 1 respondent is using BSNL.

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Theme 5: The Indian telecom industry has become very competitive

The Indian telecom industry has % Count

become very competitive
Strongly disagree 4.5 3
Disagree 3.1 2
Neutral 10.6 7
Agree 62.1 41
Strongly Agree 19.7 13

Interpretation: The data collected from different respondents has been analyzed that at
present, the degree of competition with Indian telecom industry has become very
intense. Out of the total respondents from whom the data has been collected, Majority
which is 62.1% agrees with the mentioned above facts and other 19% strongly agreed
with the same. On the other side of this, 10.6% respondents neutral and 3.1%
respondents disagreed whereas remaining 4.5% strongly disagree with the same.

37
Theme 6: Reliance Jio has carried out digital transformation in the Indian Telecom
industry

Reliance Jio has carried out digital % Count

transformation in the Indian Telecom
industry
Strongly disagree 3.1 2
Disagree 3.1 2
Neutral 6.2 4
Agree 64.6 42
Strongly Agree 23.1 15

Interpretation: From the data collected, it has been analyszd that the Indian telecom
industry has undergone through digital transformation because of the entry of Reliance
Jio within the same. Out of the total respondents, the majority which is 64.6% agree with
this fact and 23.1% strongly with the same. On the other side of this 6.2% of respondents
were neutral and 3.1% of respondents have disagreed whereas the remaining 3.1% of
respondents strongly disagree with the same.

38
Theme 7: The sales and profitability of brands such as Airtel, Vodafone, Idea and
BSNL has been adversely affected because of the entry of Reliance Jio in the
industry

The sales and profitability of brand such % Count

as Airtel, Vodafone, Idea and BSNL has
been adversely affected because of the
entry of Reliance Jio in the industry
Strongly disagree 1.5 1
Disagree 12.3 8
Neutral 6.2 4
Agree 53.8 35
Strongly Agree 26.2 17

Interpretation: From the information gathered through primary sources, it has been
analyzed that the entry of Reliance Jio in the market has resulted in affecting the sales
and profitability of other brands operating the telecom industry of India. Out of the total
respondents, the majority which is 35 agreed with the fact whereas the other 17 have
strongly agreed with the same. On the other side of this, 4 respondents are neutral and 8
have disagreed with the fact whereas 1 has strongly disagreed with the same.

39
Theme 8: What impact Reliance Jio put on Telecom sector?

Interpretation:

 45.3% say switching of customers from one operator to another due to Jio.
 34.4% say there were price wars among competitors due to Jio.
 18.8% say it reduced tariffs.
 15.6% say stiff competition.

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Theme 9: The 4G network of Reliance Jio is very effective

The 4G network of Reliance Jio is % Count

very effective
Strongly disagree 4.6 3
Disagree 6.2 4
Neutral 7.7 5
Agree 58.5 38
Strongly Agree 23.1 15

Interpretation: From the information collected, it has been identified that the 4G
network of Reliance Jio is highly effective and this is a major factor which has supported
the brand in enhancing its dominance in the telecom industry of India.

 58.5% have agreed that Reliance Jio‟s 4G network is very effective.

 23.1% strongly agreed that Jio‟s 4G network is effective.
 7.7% neutral
 6.2% have disagreed
 4.6% strongly disagreed

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Theme 10: Customers of other network providers in the country are switching to
Reliance Jio at a rapid pace

Customers of other network providers % Count

in the country are switching to
Reliance Jio at a rapid pace
Yes 64.6 42
Cannot say 30.8 20
No 4.6 3

Interpretation: The data collected from primary sources outline the fact customers of
other network providers are switching to Reliance Jio at a rapid pace. The data has been
identified that the majority which is 64.6% of the respondents agreed with the fact. On
the other hand, 30.8% of the total respondents were neutral and the remaining 4.6%
disagreed with the fact.

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Theme 11: Reliance Jio has been able to dominate the Indian market because of its
loss leader strategy

Reliance Jio has been able to dominate % Count

the Indian market because of its loss
leader strategy
Strongly disagree 1.5 1
Disagree 21.9 14
Neutral 23.4 15
Agree 46.9 30
Strongly Agree 6.3 4

Interpretation: From the information collected, it has been analysed that Jio has
employed a loss leader strategy and this strategy has played a significant role in
providing the organization with an opportunity to dominate the entire Indian telecom
industry. Out of the total respondents, the majority which is 46.9% have agreed with the
fact and 23.4% were neutral. On the other hand, 21.9% of respondents disagreed and
6.3% of respondents have strongly agreed, whereas 1.5% strongly disagreed with the
same

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Theme 12: The Company has carried out huge investment in developing the
network infrastructure within India

The company has carried out huge %

investment in developing the network Count
infrastructure within India
Yes 70.8 46
Cannot say 27.7 18
No 1.5 1

Interpretation: From the data collected, it has been identified that to offer high speed
data and better connectivity of mobile network, Jio has carried out considerable
investment on development of infrastructure network within the country. Out of the total
respondents, the majority which is 70.8% agreed with this fact whereas the other 27.7%
were neutral and the remaining 1.5% disagreed with the same.

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Theme 13: Jio gain competitive advantage over other players due to various factors

Jio gain competitive advantage over %

other players due to various factors Count
Low prices 12.4 8
Longest network coverage of 4G 23.4 15
High-speed internet connectivity 17.2 11
No blackout days 1.6 1
All the above 45.3 29

Interpretation: It can be evaluated that within a short span, Jio has been able to gain
competitive advantage over the network providers which are operating in the country
from many years. Out of the total respondents 1.6% stated that no blackout strategy has
supported Jio in getting competitive advantages whereas the other 12.7% favored Jio‟s
low price strategy. The other 17.2% of the total respondents favored hi-speed internet
connectivity offered by the company and the other 23.4% were in the favor of network
coverage provided by Jio. However, the majority which is 45.3% of the total respondents
stated that all the mentioned above factors are have played a critical role in providing Jio
with competitive edge over other players in the market.

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Theme 14: Reliance Jio is giving intense competition to the other network providers
in the country

Reliance Jio is giving intense % Count

competition to the other network
providers in the country
Yes 66.2 43
No 3.1 2
Maybe 30.8 20

Interpretation: It has been analysed that even after facing issues such as call failure
and reduction in data speed, Jio has been able to give intense competition to other brands
operating in the Indian telecom industry. Out of total respondents, the majority which is
66.2% have agreed with the fact, and 30.8% of respondents were neutral, whereas the
remaining 3.1% disagreed with the same.

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Theme 15: Which service do you like most while using Reliance Jio?

Interpretation:

 65.1% of respondents are in favour of Data services.

 33.3% of respondents are in favour of call rates.
 19% of respondents are in favour of network coverage.
 9.5% of respondents are in favour of valued added services.

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Theme 16: Would you like to recommend others?

Would you like to recommend others? % Count

Yes 80 52
No 20 13

Interpretation:

 80% of respondents prefer to recommend others.

 20% of respondents prefer not to recommend others.

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Research Findings

 While conducting the survey. I found that most of the respondents are using
Reliance Jio, and remaining respondents are not. Because still they have not
attracted towards the services provided by Reliance Jio.
 Reliance Jio has wide market captured in both the rural and the urban area
 Most of the respondents are satisfied with Reliance Jio‟s 4G network services as
comparison to others.
 Most of the customers from other providers switched to Reliance Jio because of
unlimited offers, lower price.
 Reliance Jio has enhanced the potential market all over the India.
 Reliance Jio has brought digitalization in the telecom market of India.

Suggestions

 In today‟s era the Reliance Jio must focus on rural areas to get the people attention
and father the rural people interest. Because most of rural people are not having
the knowledge about Reliance Jio.
 Establish network towers in rural areas. Because in most of rural areas there is
lack of network connection.
 Remove the problem of calling congestion & call drop.
 Get the feedback from existing customers about Reliance Jio and take the
reference for making new customers.
 The customer care people and also employees in Reliance Jio should try to convey
brand Reliance Jio while talking to people.
 Enhance the market penetration & shares in every market and give the high
competition to other company.

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 LIMITATIONS

 The first problem I faced is in getting the co-operation of the customers. Many of
the respondents I approached did not agree to the need and utility of the project
and hence did not agree to provide me with information.
 The behavior of the customer is unpredictable which may result in the lacking of
accuracy in the data.
 As the sample size of the questionnaire was so small and comprise of only 100,
the results may have some prone to errors.
 Study accuracy totally based upon the respondents response.

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 CONCLUSION

Reliance Jio‟s mega entry generates lot of drastic and unanticipated changes in
consumer‟s behaviors. The entrant impacts the equilibrium and jolt the telecom industry.
It leads to a uncertainty, the big services providers talks about mergers and acquisitions.
Due to existing barriers, they will not get of the industry built it becomes too difficult to
survive for small players. The main objective of Reliance Jio is increasing their
consumer base by providing high speed internet at nominal rates. In end Reliance Jio has
successfully hit the target market and has deep pockets to invest but has threat to
competition and technology.

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 BIBLIOGRAPHY

 A report study on Reliance Jio limited - Anjumol K S, Neethu N, Niharika Rajan,

Sreelakshmi Sandeep
https://www.researchgate.net/publication/332529159_A_Study_Report_On_Relia
nce_Jio_Infocomm_Limited
 https://www.ijsrm.in/index.php/ijsrm/article/view/1009

 A study on Reliance Jio - Researcher Hub

 https://yourstory.com/mystory/5d0f0dc0b2-how-reliance-jio-unleashed-the-much-

needed-digital-tsunami-in-the-indian-telecom-industry

 https://economictimes.indiatimes.com/markets/stocks/news/outlook-2019-

competitive-intensity-to-continue-in-telecom-fittest-will-

survive/articleshow/67307635.cms?from=mdr

 https://www.jio.com/en-in/about

 https://www.airtel.in/about-bharti/about-bharti-airtel

 https://www.business-standard.com/article/companies/reliance-jio-effect-bharti-

airtel-s-net-profit-down-76-to-rs-343-crore-117110100046_1.html

 https://discover.vodafone.in/about-us/home

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ANNEXURE

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