Reliance Jio Plans- Marketing Stunt or Real Consumer Benefit

India has always been a competitive market for mobile phones and has one of the lowest rates for voice calls in the world. This has just been reduced even further down to zero with the launch of Jio by Reliance. Reliance Jio is providing an introductory free offer for three months, after which it will charge a minimum of Rs.149 for 300 MB data and unlimited free voice calls.

The tariff packages offered go up to Rs. 4999 and 75 GB. Jio has also indicated that their data cost would be cheaper than the current market average. This definitely means a change to the telecom industry pricing structure.

Reliance Jio Impact on the market

Smaller companies will not be able to handle such a challenge and there were worries that companies like Aircel might be forced out of the competition, unable to compete with Reliance Jio might. Aircel has subverted this by opting for a merger with Reliance but the fate of other small operators still hangs in the balance.

Companies that have not targeted data as a key offering are at risk now. On the other hand, well-established telecom companies such as Airtel, Idea, and Tata Telecom will face the prospect of a reduction in revenue and may have to come up with different strategies to keep the customer interested. The main reason that Reliance is able to offer free voice calls is because of its investment in 4G technology. The voice data goes through the data network and not the cellular network, thus making this possible. Other companies with the requisite infrastructure also have the option to do this.

Impact on users

It is very likely that other telecom companies will also announce a price reduction in the coming days. They are not likely to go down without a fight. Bharti Airtel appears to be in the best position to offer some serious competition to Reliance, especially since it is already well established in the market. This might prove to be good for consumers in the long run.

Research indicates that the average monthly usage of data among Indian users is around 800 MB. Reliance Jio minimum offer package of 300 MB might prove to be too low and hence not all that attractive to most users. But the free voice calls will definitely be a temptation for users, especially since the roaming facility is also included with it.

Conclusion

Whether this is merely a marketing stunt or whether it will genuinely offer benefits to users, only time can tell. It is very likely to lead to a price war but if one thing is sure, it is that Jio has certainly shaken the telecom market and changed it.