As Reliance Jio already started their network quality assessment program by offering connections to Reliance Group employee and their family member in order to improve the gap within the system. In order to control the ecosystem, Reliance Jio invested heavily in R&D and development of in-house product as well as patching in cutting edge VAS partners to offer complete end to end solution to their end customer.
The strategy is to earn from side loaded applications, product or service instead of data plan and it seems disruptive move. During the process, they took the clue from European and US based Telco's to offer device attached with data plan and in-turn improve the overall revenue and improve their standing in the device market shipment while subsidizing the device price heavily.
"Interestingly they offer Jio Play, VoD, Beats, Mags, News and Xpress News and Drive which offer direct competition to Google offered default apps or services."
By offering subsidized devices coupled with apps or product or service which they make it chargeable in due course along with data and voice plan is nothing but a strategy is to tag userbase for predefined period. The strategy to mitigate any impact of MNP ( Mobile Number Portability) on their acquired userbase at the same time offer so much of free services that user gets habitual of the same before initiating tariff price increase.
In my personal opinion, the move will directly challenge Google Android One strategy as well as Userbase in India. As analyst predicted that Reliance Jio will acquire many Millions new user means all those user will be bound to new device and in market size of 105 to 120 Mn new Smartphone per annum, I am expecting LYF will be sitting at around 20 to 22% of market share and in-turn will be driving force to get the guideline as per their wish.
It would be interesting potential collaboration of Google with Reliance Jio to improve the user experience of end user while being aware that they can be one of the biggest influencers in many way be it positive or negative.
Originally published at www.linkedin.com
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