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Seven Things That Made Reliance Jio The Number One Telecom Operator In India

Priyanka Dua

Ever since Reliance Jio launched its services in the country, other operators have failed to come even close. In fact, Reliance Jio has recently announced that it has become net debt-free after raising money from 10 investors. Reliance Industries has received Rs. 168,818 crores from the stake selling and from the right issue.

If we talk about the subscribers, then Reliance Jio currently has more than 388 million customers, and it is leading the telecom operator. In fact, there are several factors that helped the operator to achieve such big numbers. In that way, we are going to all those factors. Let's have a look.

Reliance Jio Free Services

Reliance Jio launched its services in 2016 at its annual general meeting. The operator had launched its services with free voice calls and free data to gain a substantial market share in the country. The operator has broken all records of the telecom industry and gained 100 million subscribers in just 170 days, which means seven customers per second. Later on, the operator introduced packs, where calls are free. This was again a major hit to other operators, as 80 percent of revenue used to come from voice calls.

Data At Cheap Prices

Airtel and Vodafone, Idea, and other operators used to offer data on higher prices. But, they have to reduce the prices to stay in the market and to give a tough competition to the incumbent operator. All operators have recently increased the prices, but still, Reliance Jio plans are charging 33 percent less in the telecom industry, while it is offering minutes to calls on the other networks.

Reliance Jio Launches JioPhone And JioPhone 2

Soon after, Reliance Jio launched JioPhone and JioPhone 2 to offer basic facilities to its users, such as WhatsApp, Facebook, and YouTube facilities. Currently, the operator has more than 100 million Jiohone users in the country. For the unaware, JioPhone is available at Rs. 1,500, while JioPhone 2 Rs. 2,999.

Launching Prepaid Plans To Attract Users

The operator had launched its operations in 2016, and it is going to complete its four years soon. The operator is known for launching and providing the most affordable packs in the country. The telco is charging 33 percent less for its packs.

Acquired Stake In Saavn, Eros International, ALT Balaji, Haptik, Den And Datacom

In just four years of its operation, the operator has bought a stake in several companies to build the Jio platforms. The operator has acquired Saavn the music streaming application, and now it has become JioSaavn application. Then, the operator has purchased stakes in Eros International and in ALT Balaji to offer content to its users. Then, Jio bought 66 percent stake Den, Datacom, and Hathway to launch its broadband services in the country.

Reliance Jio Launches Working From Home Packs

The telecom operator has launched several plans for its customers during the lockdown, where it is offering double data, content, and other benefits. Besides, the operator has joined hands with Amazon Prime and Hotstar + Disney to offer content services to its customers as lockdown has increased the consumption of content by 50 percent. All content providers garnered thousands of subscribers during that period. In addition, the operator has announced special offers for its JioFiber customers.

Reliance Jio Sold Stake To 10 Investors

In order to become debt-free, Reliance Jio sold 24.70 percent to Facebook, General Atlantic, Vista Equity, KKR, ADIA, Mubadala, Silver Lake, TPG, L Catterton, and PIF. All deals need to go through all government approvals.

It's fascinating to see an operator who is not even four years old is leading the whole Indian telecom industry. In fact, Mukesh Ambani attracted 10 big investments in just two months, which means that global investors have found a perfect place to invest in a tech company in India.

Of course, these factors helped a lot an operator to become debt-free and number one operator. But still, we believe that Airtel and Vodafone-Idea's situation has actually played a big role in this as both are going through a major financial crisis, and they have no money to compete with Reliance Jio.

So, in our opinion, both Airtel and Vodafone-Idea do not have any strategy to give competition to Jio as both are sitting on huge debts. Both operators are looking for government support to run their operation in the country, while Reliance Jio is capable enough to do so. The operators are looking for 20 years to pay their debt. On the other hand, Reliance Jio has cleared its AGR debt already, which means Jio has all the time to think and bring new schemes and offers to gain market share and customers.

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