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Tag: 4G network

  • Reliance Jio Business Model | How does Jio Makes Money?

    Reliance Jio, we all have been hearing a lot about this company for the past few years. Reliance Jio is a well-structured company whose business model is considered ‘the sweetest data bait.’

    Jio has proven itself the icon of international tech and private capital investors. According to estimated data, Jio has raised Rs. 67,194.75 crore from the forthcoming technology investors including Silver Lake, General Atlantic, Facebook, and Vista Equity.

    With the vibrant interest of the foreign investors in the Indian market have signed several deals for Reliance Jio. When it comes to the business model of Jio, the company has opted for very cleverish strategies which have resulted in remarkable profits for the company.

    Reliance Jio holds a very strong position in the market with an immense customer base. Through this article, we will be discussing the business model of Reliance Jio briefly along with its tremendous marketing strategies. Let’s begin!

    About Reliance Jio
    Key Product and Services of Reliance Jio
    Target Audience of Reliance Jio
    Business Model of Reliance Jio
    What is unique about the business model of Reliance Jio?
    How does Reliance Jio make money?
    Conclusion
    FAQs

    About Reliance Jio

    Reliance Jio Logo
    Reliance Jio Logo

    Jio is officially termed as Reliance Jio Infocomm Limited which functions as the Indian telecommunications company. Jio was founded by Mukesh Ambani in 2007 as the subsidiary of Reliance Industries.

    Reliance Jio, which functions as a subsidiary of Jio platforms and telecommunications services providers has its well-established headquarter in Mumbai, Maharashtra, India. Alongside the company operates all 22 telecom circles through the National LTE network. Through this, Jio provides the voice service on its 4G network, that too only from the LTE network.

    Today, Jio is known as the largest mobile network operator across India and the third-largest in the world. The company has over 42.62 crore subscribers. Recently in 2019, Jio launched its service of fiber to the home, where it offers television, telephone, and home broadband services. As of 2020, Reliance Jio raised its funds by selling around 33% equity stake in Jio Partner, worth Rs. 1.65 lakh crore that is, US$23 billion.

    Jio Business Model and the success story

    Key Product and Services of Reliance Jio

    Reliance Jio Services
    Reliance Jio Services

    Reliance Jio offers tons of amazing services through its fiber-to-the-home services. Its key services include telephone services, television, and home broadband services.

    While its key products are Mobile Phones, top-notch internet speed and services, fixed-line telephone, OTT services, and Wireless broadband.

    Target Audience of Reliance Jio

    Reliance Jio majorly concentrates on the audience who are smartphone users. It provides the service of high-speed internet and great android mobile services. Jio targets the urban and two-tier middle and upper-class people. Jio works towards transforming India into a digital nation.

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    Business Model of Reliance Jio

    Jio, being the highest in the market strategizes its business model in a very significant and unique way. It has opted for the formula of ‘Unique Selling Point.’ This basically means Jio offering such unique and advantageous services to their customers that can not be resisted.‌‌ This can be elaborate as when Jio launched the unlimited offer with a 4G server, people of India weren’t encountered 4G at all. And with such a unique offer, how can someone turn it down? And that’s what benefits the company of Reliance Jio.

    Jio offers a broad range of customer-based features and services like high-speed Internet, free voice calls, unlimited texting, and many other. All these are developed to charge money from the customers. Its tariff plans are exclusively built to catch consumers’ eyes.

    Jio has offered some very exclusive services to its customers with a fully served 4G network. Jio was the first to bring on the popularity and use of 4G network while other telecom companies were still working with 3G networks. And with this significant approach, Jio builds the biggest loyal customers base.‌‌ People wanted more things in less price, Jio took the opportunity and provided them that. This unique strategy is what brought Jio where it is now!

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    What is unique about the business model of Reliance Jio?

    Jio has opted for the most powerful and promising business strategies, which has surely brought great benefits and profit to it. Its business model is very simple, yet unique. The most unique thing about Jio is it offers free voice calls to its customers. According to statistics, only 10-15% of the Jio 4G network is used for calling while the other 85-90% is used for data. And when you have this amount of popularity and usage, paying a little price is always worth it. That’s what Jio does!

    In this way, it attracts more and more customers to its services and creates a significant marketing buzz with free offerings. In all manner, it’s beneficial for the company.

    How does Reliance Jio make money?

    Reliance Jio generates its money from two major options- Charging extra per unit and selling more units. And as compared to other telecom companies, Jio sells way more of its units to generate more money.

    For those who refer to Jio as a cheap telecom service provider, they are talking about its per-unit cost. But apart from this, the company charges its customers INR 154 for ARPU. And this amount is higher than any other telecom operator company.

    So, the Jio customers are actually paying more for the cheap products. Jio does not provide the facility of paying just INR 10 per month as compared to other telecom companies. Jio majorly focuses on generating more money through all its plans.

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    Conclusion

    ‌‌With its incredible marketing strategy of generating money through Jio tariff plans that come in 4G network brings great profit for the company. Jio follows different pricing options and makes enormous customer deals.

    They offer various applications, devices, and fiber services to multiply their revenue. This helps Jio to win numerous business verticals. And with such marketing strategies and development, Jio’s market value and position are unbeatable.

    FAQs

    What is the revenue of Reliance?

    Reliance has a revenue of 7.27 lakh crores INR (US$100 billion, 2021).

    Who is the CEO of Reliance Jio?

    Atul Kansal is the CEO of Reliance Jio.

    When was Relinace Jio founded?

    Mukesh Ambani founded Reliance Jio in 2007.

    Who are the top competitors of Reliance Jio?

    Some of the top competitors of Reliance Jio are:

    • Airtel
    • Vi (Vodafone Idea)
    • AT&T

  • What is BharatNet Project and How Startups can participate in it?

    The Rural areas in India are still deprived of the fast internet connections as well as e-services that are available to the Urban population of the country. India has been advocating the concept of Digital India for a very long time and it has been really successful in the Urban areas of the country, whereas there has always been a digital divide between the urban and rural population. In order to solve this problem, the Union Cabinet has come up with a project. In this article let’s look at more information about it.

    Bharat Net – Latest News
    How can Startups participate in BharatNet?
    What is BharatNet Project?
    Advantages in Rural India due to BharatNet
    Advantages bought in through the PPP model
    FAQ

    BharatNet – Latest News

    Bharat Net has recently announced to widen its connection and services to around 3.61 lakh villages in around 16 different states in India. The broadband connection will be offering a high-speed data and enable better access to the rural India towards e-services that are offered by various Government Agencies.

    Bharat Net will also enable the rural population to attend online classes, OTT, e-commerce, skill development, tele medicine and other applications of the broadband service.

    The Union Cabinet had conveyed on 30 June 2021 that it would launch a revised implementation strategy of the broadband service through a Public Private Partnership in 16 states of the country.

    How can Startups participate in BharatNet?

    The Union Cabinet has announced that this expansion procedure is going to be undertaken through a Public Private partnership model, this will enable the startups to take part in the bidding process and provide their services in setting up the connection.

    The revised strategy includes not the creation but also the upgradation, maintenance, operation and utilization of the broadband service. The company which will be receiving the tender will have to undertake everything.

    The tender will be decided based on a competitive bidding process and the estimated maximum viability gap funding that was approved by the Union Cabinet for the public private partnership is INR 19,041 crores.

    What is BharatNet Project?

    BharatNet is said to be connecting all the inhabited villages beyond gram panchayat under this project in the 16 states. The 16 states that are approved by the Union Cabinet include Kerala, Karnataka, Himachal Pradesh, Rajasthan, Haryana, Punjab, Madhya Pradesh, Uttar Pradesh, Assam, West Bengal, Manipur, Meghalaya, Tripura, Arunachal Pradesh, Mizoram and Nagaland.

    As per the estimation, around 3.61 lakh villages will be covered under this project which includes Gram panchayats. The Union Cabinet has also given permission to provide the services to other inhabited villages in different states as well as Union Territories.

    The Department of Telecommunication has announced to work out the modalities for the remaining villages in the other states and the Union Territories.

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    How BharatNet will impact Rural India

    The extension in the reach of the broadband services that is reliable will enable better access to the e-services that are provided by the Central and the State governments.

    The main advantage is that there would a source of revenue that will be generated from the rural India through different sources which include the proliferation of broadband services to individuals and institutions, fiberisation of mobile towers, e-commerce, sale of dark fiber and many more.

    The extension will also enable to reduce the gap between the Urban and Rural divide of digital access and will increase the achievement of Digital India. The penetration and proliferation are also expected to increase income generation as well as direct and indirect employment in the rural sectors.

    Advantages bought in through the PPP model

    The PPP model will bring in a lot of consumer friendly advantages that include the use of innovative technology for the consumers by the private sector, faster development of network and quick connectivity to the consumers, OTT services and other variety of services to the consumers, access to all online resources, faster deployment of network and quick connectivity to consumers.

    The PPP model is also expected to bring an equity investment and is also expected to raise resources towards the capital expenditure.

    Conclusion

    The PPP model towards Bharat Net will improve the quality of service, customer experience, efficiency, entrepreneurship, leverage private sector enterprise and capacities for accelerating achievement for digital India.

    FAQ

    What is Bharat Net project initiative?

    BharatNet project is a project to provide on demand, affordable broadband connectivity in rural areas. BharatNet is said to be connecting all the inhabited villages beyond gram panchayat under this project in the 16 states.

    Who has the largest fiber network in India?

    State-owned Bharat Sanchar Nigam Limited (BSNL) has the largest fiber network which is nearly 8 lakh km long.

  • 5G Technology: Countries that are leading the 5G Race in the world

    Countries all across the world are racing to deploy 5G. 5G networks, once placed perfectly, will impact everybody and everything. It will change the face of remote industries, smart cities, and digital transmissions.

    Every country understands the power of connectivity and is keen to commercialize 5G. It is meant to connect new industries through its high multi-Gbps data speed. It will provide increased reliability, immense network capacity, and a more uniform user experience.

    Germany
    UK
    Hong Kong
    Switzerland
    Kuwait
    Canada
    Taiwan
    Australia
    South Korea
    Saudi Arabia
    China
    USA
    FAQ

    Below is the list of top countries that already have 5G

    Germany

    Average 5G’s speed: 102.0 Mbps

    Service Providers: Vodafone, Telefonica Deutschland

    Germany is one of the leading users of the 5G network. 5G services are available in around 1000 towns across the country. Telefonica Deutschland has already reached 16 million people. The Vodafone CEO said, “We aim to reach 30M people by the end of 2021.”

    UK

    Average 5G’s Speed: 133.5 Mbps

    Service Providers: EE, Vodafone, Three UK, O2

    United Kingdoms is one of the earliest countries to commercialize 5G. Here, the service providers began 5G in May 2019. It has expanded to 125 towns now. Vodafone’s 5G was made available to Coventry University to train student nurses and healthcare workers through virtual reality. Meanwhile, another service provider, Three UK is focusing more on providing 5G for homes and 1.6 million households are now covered.

    Hong Kong

    Average 5G’s Speed: 142. 8 Mbps

    Service Providers: China Mobile Hong Kong, 3 Hong Kong, HKT, SmarTone

    Hong Kong is comparatively new to the race of 5G. 5G in Hong Kong became active in 2020 only. China Mobile, SmarTone, and other operators have acquired 200 MHz of the whole 3.5 GHz spectrum for HKD 1 billion i.e., $129 million. 5G is available in both indoor and outdoor locations. China Mobile claims that it is going to cover 90% of all Hong Kong City.

    Switzerland

    Average 5G’s Speed: 150.7 Mbps

    Service Providers: Salt, Sunrise, Swisscom

    5G has also begun in Switzerland and it’s already have secured second place in top countries to serve 5G. Swisscom and Ericsson covered over 54 cities. They aim to provide 5G to everybody in the country whether they’re living in the countryside, city or mountains. However, the government of Switzerland is also concerned about the adverse effects of the radiation coming from the 5G towers. They’re actively working to control it.

    Kuwait

    Average 5G’s Speed: 150.7 Mbps

    Service Providers: Zain Kuwait, STC, Ooredoo

    Kuwait is one of the earliest 5G consuming countries. It started serving 5G in mid-2019. Kuwait has the largest mobile penetration in the world. The introduction of 5G will take internet usage to the next level. The 5G network will help users to engage with advanced models of technology that can increase efficiency, reduce costs and improve health.

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    Canada

    Average 5G’s speed: 171.8 Mbps

    Service Providers: Rogers Wireless, Bell Mobility, Telus Mobility, Videotron

    5G network has been launched in Canada along with mobiles to connect to 5G. It is available through subscription and pre-paid is not yet available. Other smaller network operators will also launch 5G by 2021-22. Also, it’s important to know that old 4G phones cannot be upgraded to 5G so people have to buy a brand new 5G phone to enjoy the high-speed network.

    Country with the most cities with 5G availability
    Country with the most cities with 5G availability

    Taiwan

    Average 5G’s speed: 210.2 Mbps

    Service Providers: FarEasTone, Chunghwa, Taiwan Mobile, Tatar

    Taiwan launched 5G in July 2020 and reached 1 million subscribers in no time. Chunghwa Telecom claims to have reached 3 million subscribers later that year and 5 million by the end of that year. 5G is growing at a tremendous rate in Taiwan. Taiwan Mobile expects to cover 15 to 20% of all subscribers in the country.

    Australia

    Average 5G’s Speed: 215.7 Mbps

    Service Providers: Telstra, Optus, TPG Telecom

    Australian telecom service providers have managed to provide 5G services to a large percent of the total population. Telstra alone has covered 50% of the population including 46 towns and cities. Meanwhile, Optus covers over 4 lakh households. Together, they’ve covered 85% of the total population.

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    South Korea

    Average 5G’s speed:302.7 Mbps

    Service Providers: SK Telecom, KT Corp

    In South Korea, 5G was initially launched for B2B customers as they had businesses as their main focus. As far as customer focus is concerned, 15% of the total population is using 5G as of September 2020. The government is also supporting 5G service providers with taxes as they plan to expand their network across the country. This opens many gates for a hefty expansion of 5G in South Korea.

    Saudi Arabia

    Average 5G’s speed: 404.2 Mbps

    Service Providers: STC, Mobily, Zain

    Saudi Arabia has a total of 51 cities under 5G coverage. Saudi Arabia is ambitious with its 5G project as they plan to achieve one goal- “Thriving Society, Thriving Economy, Ambitious Nation”. They plan to expand their network to 71 cities by the end of the year. They will be targeting three major sectors through top-class connectivity- oil & gas, public sector, and manufacture.

    China

    Average 5G’s speed: 301.60 Mbps

    Service Providers: China Telecom, China Unicom, China Mobile

    China has the world’s largest number of 5G subscribers. At the end of February 2021, it was reported to have 260 million 5G subscribers. In the Mobile World Congress 2021, the Chinese government officials claimed that they’ve invested more than $40.2 billion to build the world’s largest 5G network.

    It must be noted that China lacks transparency in its claims so they are not trusted by many officials across the world. But still, China has more 5G subscribers than many countries combined.

    USA

    Average 5G’s speed: 70 Mbps

    Service Providers: T Mobile, Verizon, AT&T

    In the USA, T Mobile is winning the race as it has successfully provided 5G to over 279 cities with over 200 million Americans. Verizon is also working its best to deliver the network speed in 60 major cities. Meanwhile, AT&T serves some parts of many states. The number of cities with 5G connectivity increases each year in the USA.

    FAQ

    Why is 5G such a big deal?

    The new 5G standard is faster and more responsive, which will leverage machine learning, artificial intelligence and to automate network management and security.

    Where is the most 5G in the world?

    The top three countries that have the most cities with 5G are China, the United States, and South Korea.

    When 5G will launch in India?

    Jio one of the leading network providers in India has announced that they will be ready to deploy 5G technology in the second half of 2021.

    Conclusion

    5G will soon take over 4G, 3G, and LTE networks. These were the leading countries that have their citizens already equipped with 5G. It’s safe to say that this new super fast network is going to change the way we perceive data transfer. However, we must not forget to keep an eye on the side effects and dangers that these changes pose. But all in all, we should brace ourselves for this new generation of connectivity and speedy downloads.

  • How will 5G Revolutionize the Indian Startup Industry?

    The Industrial Revolution of the 1800s came with unprecedented levels of production which greatly boosted the GDP per capita income of the economies in American and European nations. While this greatly reduced the need for imports in these Economies, Nations like India merely ended up as suppliers of raw materials and this had an adverse effect on the economy.

    From then till now, there has been a lot of technological revolutions but none has come close to the role digitization and mobile broadband play in the growth of the Indian industry. The world is in the midst of yet another revolutionary change with the Information communication and technology industry and its focus on mobile broadband and the imminent rise of 5G technology that is expected to serve as a catalyst in this sector.

    What is 5G
    Where does India stand among others
    Industries that 5G begins to impact
    Opportunities that 5G will provide to Startup Industry
    FAQ

    What is 5G

    5G is a 5th generation technology that offers wireless connectivity across virtually all people and devices including objects and machines. Compared to its predecessors, 5G offers speeds in the range of multi-Gbps and reduced delays while improving reliability to assist with a wide range of critical activities such as remote surgery, self-driving cars, and increased surveillance, by offering lighting speed data with which movies can be downloaded within just seconds.

    5G technology is all about the race to the future and whichever countries adopt this technology early in the race stands to gain a competitive edge among their rivals. However many countries are still early in their race to implement 5G networks due to the high cost and infrastructure required to implement the rollout of 5G technology.

    Which Country is Ahead in 5G
    Which country is ahead in 5G

    South Korea has been one of the successful early adopters of 5G technology. American and European countries are not far too behind and have been heavily implementing 5G technology across their networks. China has also launched its own fully operational 5G network.

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    Where does India stand among others

    The rollout of its predecessors such as 2G, 3G, and 4G had been extremely slow in India with major delays in its implementation and this raises some questions on how India will fare in the race to setup 5G networks.

    While the highly anticipated 5G is still in its planning phase, In December 2020, the chairman of Reliance Industries, Mukesh Ambani had revealed that his telecom company, Jio, would launch 5G networks in the second half of 2021 owing to native developed technology, hardware, and network components.

    With the rise of mobile usage and increased need for data services, the digital economy in India is expected to reach 1 trillion dollars by 2025. With nearly 1.2 billion mobile users and 560 million internet users, India is the second-largest internet in the world. With a stride of developments, India had taken in the past years to enable digital growth, 5G is expected to add more in empowering a Digital India.

    Industries that 5G begins to impact

    Agriculture, Healthcare, Education, Automobile, Retail, Banking, Sustainable Energy, Tech Enterprises, Automation, Artificial Intelligence, Logistics Industry, Smart cities & smart homes, Gaming & entertainment Industry and Industry 4.0 are some of the fields being drastically altered by 5G technology. These are just some of the use cases I have provided at this time and 5G is enabling to do much more.

    Majority of IoT devices of the future depend on 5G to provide connectivity and transfer massive sums of data to help companies bring more innovation. 5G is a major paradigm shift from 4G in the sense that 4G put the world in our hands and 5G seeks to do away with hands. IHS Economics projects that by the year 2035, 5G will enable around $12.3 trillion of the global economic output which from a business perspective will add a lot more jobs in the future.

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    Opportunities that 5G will provide to Startup Industry

    The key to the successful implementation of 5G networks lies in the telecom partnering together with startups to focus on driving innovation and disrupting the marketplace. The usage of 5G technology is unlike other technologies where you build the block and the uses present themselves rather 5G should be geared towards specific and focused use cases.

    Telecom ecosystem has a large responsibility to transition into 5G, they should be able to provide high speeds at zero near latency and should make it sustainable. Telecoms partnered with startup companies will likely lead to more use cases and new ideas being generated. For example, Radisys a company headquartered in the US which builds IoT and 5G product was acquired by Reliance Industries to help strengthen their 5G networks.

    Mymo, an Indian based startup that makes chipsets for 5G devices and Signal chip which makes chipsets for a 5G powered modem is taking on Qualcomm a global giant in the 5G chipset segment.

    FAQ

    When 5G will launch in India?

    5G will roll out in India by the end of 2021 or the beginning of 2022.

    When will Jio launch 5G?

    Jio is planning to roll out 5G in India in the second half of 2021.

    Which countries have 5G now?

    South Korea is the first country to deploy 5G network.

    Conclusion

    With all the hype surrounding 5G, it is easy to lose track of all the innovations it has to offer. The technological advances with 5G mean newer business models wherein it possible to decide and allocate resources over shared networks geared towards specific users to enhance their user experience without disturbing the existing users.