How has Jio affected the Telecom Sector?

4 Nov 2019 Read 510 Views

Reliance Jio took a ‘showstopping’ entry in Indian Telecom space. It was a good ‘Jugaad’ by Jio to offer Internet services.
How was Jio born exactly? Read and find out below..

“Reliance Jio” this name has given nightmares to telecom operators since its arrival. It’s quite probable that if you’re reading this article on your phone, you might be using Jio’s 4G networks as well. If we may ask you, what’s so special about Jio? The answer would be quite obvious, that it’s free! (Not completely free but… whatever)

Enough of generalized opinion… Now, let’s come to the point.

Have you ever given it a thought that, after all how was Jio born? How was it able to disrupt the market so badly that till date the telecom sector is unable to recover? You don’t need to scratch your heads and start researching. We’re there to provide you researched information that you’ll find interesting!   

Infotel Broadband Services Ltd. – The Side Hero

What on Earth is this company doing in this article?

We’re pretty sure that you wouldn’t have heard of it. But, do you even know that today if you’re able to enjoy ‘Free’ 4G data service, that’s just because of this company!

Here’s exactly what happened – In 2010, government auctioned an all-India BWA (Broadband Wireless Access) Spectrum. Guess who won the spectrum?

Infotel Broadband Services Ltd. So, now the question is that how did Mukesh Ambani’s Reliance get the spectrum? Simple, it acquired 95% stakes in Infotel!

Has Reliance Jio Done the Right Thing?

Well, we’re not used to giving judgments, we just give interesting information. So, here’s how it is. A PIL (public interest litigation) was filed in the Supreme Court by an NGO against granting of 4G licences to Reliance Jio in 2016. Currently, Jio is still functioning hale and hearty, giving tough time to other telecom operators so,
maybe there’s not much of an effect that the PIL had.

It is well known that the Indian Telecom sector is currently bleeding. Jio has been able to grab the market share and continues to do so. Besides this, it is leaving no stone unturned to make its competitors suffer financially even more. In future, what’s worse could be that, only Jio would be left in the market to compete with itself!

In such a situation, customers will have no option but to do what Jio asks for.

That might not happen though, if industry regulations are streamlined and government interferes with monopolization. What would exactly happen in future, we’ll have to wait and watch.

Hope you liked this information. Comment below with your opinions/suggestions. Should you wish to stay updated and would like to receive relevant financial news and analysis straight in your inbox, subscribe Smart Mornings. 

About the Author: Ratan Deep Singh | 138 Posts

Ratan is a Biotechnology graduate and a former print-media Journalist, who specialized in marketing to take up Brand Communication. He’s a grammar Nazi & big-time foodie who appreciates creativity and often tries his hand in creative poetic writing.

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