JIO: Digitally Revolutionizing India

Reliance Industries revolutionized the telecommunications domain when it created and

launched Jio in the Indian market in 2016. At present, Jio is the telecommunications market

leader and has a total subscriber base surpassing 400 as according to the subscriber data

released by Telecom Authority of India. Jio accelerated digitalization in India by bringing in

the cheapest 4g data plans and consequently shifting the telecommunications industry focus

from voice-based to data-based plans. Jio has truly transformed the lives of many Indians.

On June 29th , 2022, Jio entered a new phase with Mukesh Ambani stepping down as the

company’s director and Akash Ambani taking up reins as the chairman of the company.

Akash Ambani joined Jio in 2014 and since then has played a key role in establishing the Jio

brand, creating the digital ecosystem to launch Jio’s 4G and the Jio-phone, as well as

overlooking major acquisitions for Jio growth. Him becoming a public face for the business

is predicted to bring in the enthusiasm of an energetic new age business into the market.

Responding to the change in leadership, the market shares of RIL plunged 100 basis points on

27th of June, but soon regained their positive position and the stocks were traded at a slightly

higher rate in an otherwise bearish market; thus signaling that the change in management is

indeed being cheered for. It is going to be a hearty meal for the existing shareholders as there

has been quite an optimism on business side and more investments are estimated to pour in

with the initiation of 5G.

The share value which stood at Rs. 512 back in 2016 when the industry used to depend on

voice-based services for revenue (almost 75%) has now appreciated to a remarkable Rs.

2407. This happened because earlier operators pushed to occupy market share through

competitive pricing, which Jio revolutionized. Catering to their price sensitive Indian

consumer base, the telecom operators had forever experienced strong price based competition

in order to offer one of the lowest tariff rates and maintain their image with the value

conscious customers. Jio reformed this base on which competition used to pick up by

providing a lifetime free calling service for its subscribers accessible from any network and

any place across the country. The newly introduced 4G LTE (Long Term Evolution)

technology enabled Jio to support voice based transmissions too as a result of which it could

offer these services without incurring any expense.

When costs on the side of producer sink, expenses for the consumer will decrease and this is

exactly what happened with Jio too. The per GB average prices plummeted from Rs. 152 to

an astounding Rs. 10. This has drastically increased the consumer base as internet was now

available and affordable to larger and newer segments of Indian population, many of whom

accessed it for the first time. Jio has successfully expanded its reach to almost 100 million

users just by reducing the price of data. As the expenditure on mobile talk-time and internet

decreased, the estimated annual savings from households summed up to a whopping Rs.

60,000 crores.

Jio’s business model helped the company to portray itself not just as a telecom giant offering

feasible calling and data services but as an inclusive digital platform. Jio made internet

available in every corner of the country by installing public hotspots from which users can

access high speed free internet. It also provided many devices on the Jio network that enabled

houses to have accessible Wi-Fi connections and even brought in digitalization the

marketplace via Jio-Krishi and Jio-Merchant to help farmers and retailers be more

competitive in the marketplace.

These initiatives have enabled Jio to enjoy a strong and loyal consumer base that continued

subscribing even when they were being charged for the services. Its large consumer base and

demand for services can result in Jio entering the 10 Lakh crore market cap in the next two

years. Furthermore, econometric analysis has shown that Jio and can push India’s GDP by

5.65% if the business environment remains healthy in the country. All in all, Jio is a key

player in the Indian digital movement and is a key reason for India robust digital economic

transformation.