TELECOM REVOLUTION
WHAT IS TELECOMMUNICATION?
• COMMUNICATION OVER A DISTANCE BY
ELECTRONIC AND ELECTRICAL MEAN
• INCLUDES ALL TYPES OF VOICE, TEXT ,DATA
AND VIDEO TRANSMISSION
• EXAMPLE–TELEPHONE,FAX,INTERNET
ROUTER, RADIO, ETC
TELECOM REGULATORY BODY
TELECOM REGULATORY AUTHORITY OF INDIA
(TRAI)
SETUP BY ACT OF PARLIAMENT ON 20 FEBRAURY 1997
TO CREATE AND NURTURE CONDITIONS FOR GROWTH OF
INDUSTRY
DIRECTION ON TARIFFS ,INTERCONNECTIONS, DTH SERVICE
AND MOBILE NUMBER PORTABILITY
CURRENT CHAIRMAN OF TRAI IS RAM SEWAK SHARMA
IT WORKS INDEPENDENT OF GOVERNMENT
TELECOM REGULATORY BODY
DEPARTMENT OF TELECOMMUNICATION (DoT)
IT IS A GOVERNMENT BODY UNDER MINISTRY OF
COMMUNICATION
IT ISSUES LICENSE TO THE OPERATORS
INDIVIDUAL CAN REGISTER COMPLAINT AGAINST
OPERATOR ONLINE TO DoT
IT WAS ESTABLISHED IN 1985
MAJOR MARKET PLAYERS
INDIA GLOBALLY
• 2nd largest in the world by number of
telephone users with 1.183 billion subscriber
• It has one of lowest tariff in the world
• 2nd largest internet user base in the world
with 581.51 million broadband subscribers in
the country
• India’s share globally in terms of internet
userbase in 17%
• India surpassed USA in term of number of app
download to become second in the world
TIMELINE- MAJOR EVENTS
LIBERALISATION
INTRODUCTION GLOBALIZATION
TELECOM IN INDIA BEGAN JIO LAUNCH
WITH INTRODUCTION OF PRIVATIZATION
JIO SERVICES WERE
TELEGRAPH. THE FIRST INDUSTRY WAS OPENED LAUNCHED FOR GENERAL
EXPERIMENTAL ELECTRIC UP FOR INTERNATIONAL PUBLIC ON 5TH SEPTEMBER
TELEGRAPH LINE WAS
STARTED
TELECOM OPERATORS 2016.
1850 1991 2016
1902 1995
INTRODUCTION OF
WIRELESS TELEGRAPH INTERNET
FIRST WIRELESS TELEGRAPH FIRST MOBILE TELEPHONE
STATION ESTABLISHED SERVICE STARTED ON NON-
BETWEEN SAGAR ISLAND AND COMMERCIAL BASIS ON 15
SANDHEAD. AUGUST AND INTERNET WAS
INTRODUCED TO INDIA.
• JIO WAS FOUNDED ON 15TH FEBRAURY 2007.
• SUBSIDIARY OF RELIANCE INDUSTRIES
• HEADQUATER IN NAVI MUMBAI
JIO LAUNCH • JIO SERVICES WAS SOFT LAUNCHED ON 27
DECEMBER 2015.
• ON 5TH SEPTEMBER 2016 IS WAS OFFICIALLY
LAUNCHED FOR GENERAL PUBLIC.
• OFFICIAL SLOGAN “JIO DIGITAL LIFE”
JIO APPS
SERVICES OF
RELIANCE JIO
• CELLULAR SERVICE
• JIONET WIFI
JIO PRODUCTS
TELECOM MARKET - BEFORE AND AFTER JIO LAUNCH
BEFORE SERVICE PROVIDER AFTER
(Rs) (Rs)
BSNL 111
176
AIRTEL 48
249
VODAFONE 49
252
IDEA 49
249
1GB/30DAYS 3GB/30DAYS
ROLE OF TRAI IN LAUNCH OF JIO
• ALLOWED JIO TO EXTEND ITS FREE PROMOTIONAL OFFER
• INCREASED THE LICENSE FEES DRASTICALLY
• FINED RS 3050 CRORE ON BHARTI AIRTEL, VODAFONE INDIA, AND
IDEA FOR ALLEGEDLY DENYING ADEQUATE POINT OF INTERCONNECT
TO JIO
HOW DID JIO MANAGE SUCH LOW PRICE ?
READY TO TAKE HUGE LOSSES
OPERATIONAL COST –ONLY 4G
NETWORK
INFRASTRUCTURE – SELF OWNED
FIBER (OFC) NETWORK
VOLTE – FREE CALLING
OTHER STRATEGIES
• BULLET-GUN STARTEGY
• SECOND MOVERS ADVANTAGE
• ECONOMY OF SCALE
• ROBUST MARKETING
• QUICK ACTIVATION , SMOOTH SERVICES
ECONOMY OF SCALES
• IT’S A COST ADVANTAGE THAT ENTERPRISE
OBTAIN DUE TO THEIR SCALE OF OPERATION
• JIO IMPLEMENTED ECONOMY OF SCALE
• IT ACHIEVED 130 MILLION USERS WITHIN A
YEAR
• THIS REDUCED COST PER CUSTOMER, THUS
LOWERING THE TARIFF
MARKET SHARE AS ON 31ST MARCH 2016
8.43% 9.91% 16.94% 19.15% 21.26% 24.31%
AIRCEL RELIANCE IDEA VODAFONE OTHERS BHARTI AIRTEL
COM
SUBSCRIBER BASE
MARKET SHARE AS ON 31ST JULY 2019
Ice Cream Infographics for PowerPoint
0.002% 0.29% 9.98% 28.12% 29.08 % 32.53%
RELIANCE MTNL. BSNL BHARTI RELIANCE VODAFONE
COM AIRTEL JIO. IDEA.
SUBSCRIBER BASE
WHAT WENT WRONG WITH RELIANCE COM ?
• LACK OF PROACTIVENESS –CDMA TECHNOLOGY
• LACK OF FLEXIBILITY
• FINANCIAL UNVIABILITY
• INCREASE IN COMPETITION
• INTRODUCTION OF RELIANCE JIO
MERGER AND ACQUISITION AFTER JIO LAUNCH
CONCLUSION
COCLUSION
ROBUST COMPETITION LED TO CONSUMER BENEFIT
INCREASED CONSUMPTION OF ONLINE CONTENT
PROLIFERATION OF 4G SMARTPHONE
THE DEATH OF 3G
ARTIFICIAL PRICING ATMOSPHERE
• WAR OVER CALL RING TIME AMONGS JIO ,VODAFONE AND AIRTEL.
• JIO’S REVENUE PER USER DECLINE FOR SEVENTH SUCCESIVE
QUARTER.
• JIO TO CHARGE FOR CALLS ON OTHER NETWORKS.
• 5G SERVICES TO ROLL OUT IN MID 2020.