Everyone is talking about Reliance Jio. The buzz has caught up people of  all age groups. And why not! It is providing you with free data, voice calls and messages for months! What after that? Well, the charges are 50% lesser than your current operator. So it is a win-win situation anyhow. What all has to be done for these benefits? Just switch to Reliance Jio or buy a new LYF smartphone. Jio sims are free for students if they show their ID. Who would question if you get so much for so less! But there are people like me who don’t want to go by just eating the mangoes and not counting the trees! Why are the prices so low? Obviously the company would have thought for it’s profit! So how will it achieve it’s goals? What are the strategies it has opted? In this article I will answer the questions you would have developed by now about Reliance Jio!

It must be thought that Jio won’t make money as compared to other operators with such low prices. But that is absolutely untrue as many of you already understand. Let us comprehend this with an example. Suppose you are paying 200 bucks for 1GB data to your current operator. Jio gives the same amount of data at 50% lesser charges, that is, 100 bucks for 1GB. You may end up using 2GB for 200 bucks and why not? Getting more data within your budget! And get the benefit and so does Jio. You may spend the same but what you get for that money will definitely improve!

a1

Mukesh Ambani, as we all know, is a very clever businessman. He always wanted to be part of the telecom sector, and when in 2002 the non-competent bond in telecom between him and his younger brother, Anil Ambani, ended, he immediately bought 96% shares of Infotel Broadband which had 4G spectrum all over India and later renamed it Jio. A huge amount of money has been spent for developing India’s largest optical fiber network by Reliance Jio. What for? To provide services everyone can afford!

Basically, internet doesn’t cost anything. What we are charged for is the network we are using. Other operators do not own networks in many parts of the country, so they have to pay other companies to use the network. And that is why you have to pay more! Jio on the other hand has a nationwide network of it’s own. It has the ability of further decreasing the prices but that would lead to less profit. When other network providers start decreasing their prices in competition, Reliance Jio can easily do the same and still gain higher profit!

b

Operators like Idea, Airtel and Vodafone provide 2G, 3G as well as 4G network for which they have to split their bandwidth. Also, you have to switch frequently between 2G, 3G or 4G depending on the location you are present at. This is because providing multiple networks from a single tower is expensive. So they settled by offering different networks for different localities. Jio, on the other hand, if you haven’t noticed yet, is providing only 4G network (Who needs 2G or 3G, when one can get 4G with much lesser charges!). It uses its entire bandwidth for 4G (Which is way cheaper than other networks!). Vodafone and Airtel could do the same but it would cost them a fortune to upgrade their entire network.

The idea of voice calls is diminishing. Once you get an awesome data network that too so cheap, you would obviously go for internet calling! Everybody knows this but it was implemented only by Reliance Jio. You already know you don’t need voice calls anymore, but still it sounds amazing to have them for free. Brilliant strategy adopted by Mukesh Ambani! (Isn’t it?)

You would have heard of free Jio sim with LYF smartphones. What is the connection between LYF and Jio? Well, this is another strategy opted by Mukesh Ambani! These are low specifications phones that are no longer bought by anyone in China and hence are bought by Jio at very cheap prices. These are brought to India and with some modifications and 4G support are sold at low prices. Though they have low specifications, they have enabled common man in our country to afford 4G phones starting at just Rs. 2,999! Which is, indeed, very impressive.

c

Reliance Jio Apps

Reliance Jio has also launched various apps that are supported only on Jio network.

  • JioPlay: For live TV channels on your phone
  • JioOnDemand: For HD movies
  • JioBeats: For music
  • JioMags: For magazines in eBook format

These are free to download till 2018 but will be charged for subscription after that.

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In all, it is a great initiative. The value of your money has been increased by providing improved services for the same amount. It will gradually increase the progress rate of India as internet will reach possibly to every corner of our country with cheap 4G phones and low prices of data to use. Jio is not only benefitting itself but it’s customers too!

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