As large emerging economy, India faces challenges which are unique and diverse. While rest of the world was getting on digital bandwagon, India was lagging due to basic digital challenges like

• Prohibitive cost of data and communication

• Use of old 2G technology by incumbent companies

• Limited data usage options

• Technology interfaces mostly in English (in a country where 90% cannot read or write in English)

• Complex telecom products and poor customer service from existing companies

At Jio, we believe that access to technology is a basic tenet of modern economy and access of data should be democratized to bring about structural change in the economy. This believe is reflects in our products and services, which offer world class experience at most affordable prices to our consumers. Jio’s simple pricing model and transparent product structure became instant hit with consumers. In a short span of 30 month, since launch, over 300 Mn consumers have joined our network and we still are the fastest growing telecom company in India. Before launch India ranked 155th in the world in terms of mobile data consumption, today we are leaders.

Insignt:

While developed world was moving towards 4G and data revolution. India continued to be plagued with data scarcity (Data usage per subscriber was mere 130 MB/month in Mar-16). Core to digital revolution is information accessibility along with enabler like affordable data and devices. Many digital based models like Uber, flipkart etc. gained quick traction among Indian users. However, their success was limited to few small urban pockets. The limiting factor and major opportunity area was making data available to vast majority of Indian in an affordable manner.

Challenges/prevailing market conditions:

• Mobile devices in the market were predominantly 2G or 3G based

• Pricing of incumbent’s 4G plans were prohibitively high

• Voice communication was primary driver for telecom industry

• There were only limited avenues to use data

Our solution

We challenged the status quo in the market by providing a holistic customer-centric solution-

• Affordable 4G devices which were made available at every nook and corner of the country

• Simple, transparent and most affordable plans. We made voice calls free for all

• Unmatched content to consumers for anytime, anywhere use and in language of their choice

Digitization and data consumption in India were subdued because of inadequate investment in infrastructure, lack of credible competitive environment coupled with steep pricing. The available technology was not customer centric.

Jio’s entry not only unlocked existent latent demand, but also consumption patterns leading to exponential increase in per capita data consumption. Jio provided a holistic solution comprising

a) Making technology accessible to all through

I. Pan India advanced 4G network

II. Devices suited to Indian customers’ needs – local language support, voice assistant

b) Making technology affordable to all through

I. Simple and affordable data plans (data rates of USD 0.3 per GB)

II. 4G devices at effective price of Rs 0 (USD 0)

III. Unlimited free domestic voice calls with no roaming charges across India

c) Enhancing usage of technology through

I. Bouquet of lifestyle and business app like JioTV (live TV on mobile), JioCinema (VOD content library)

Jio is one of the fastest growing telecom companies in the world. In a short span of 30 months, Jio has over 300 Mn customers. Launched in September 2016, Jio added 100 million subscribers in 170 days, the fastest achieved by any technology company in the world.

As per Institute of Competitiveness’s study Jio’s entry in telecom has led to the annual financial savings to the tune of $10 billion for Indian consumers. Econometric analysis in the same study shows that through widespread network effects, Jio’s entry would boost India’s GDP by about 5.65 percent, if everything else in the economy remains constant

Prior to launch of Jio, India ranked a dismal 155th in terms of mobile data consumption. By end of 2017, India become No. 1 in mobile data consumption, surpassing countries like US and China. It has been ranked 1st in Fortune’s ‘Change the World’ list.

India is home to 1.3 billion people with a literacy rate of 74% (90% don’t read or write English). There are about 500 million people who use basic feature phone, another 300 Mn who doesn’t use any mobile services. Close to 75% of rural Indian household have income less than Rs 5000 (USD 70) per month or Rs 33 (USD 0.5) per person per day. Per GB data costed Rs 250 (USD 4) prior to Jio launch.Uptake of mobile technology was limited due to high data prices, difficulty in understanding and managing technology as most of it was in English. Incumbent companies were neither know for good customer service nor good product and services.

History of Indian telecom sector can be clearly characterized as Pre Jio and Jio era. A comparison below depicts tectonic shift that Jio brought in the industry-

Pre Jio

Customer used to pay roaming charges while moving from one state to another

Prohibitive data charges: Rs 250 per GB

Manual customer onboarding: 1-2 day TAT

90% of industry revenue from voice calls

1000’s of telecom plans leading to confused customer & retailer

Differential treatment to customers

4G devices starting price Rs 4000 (USD 70)

India ranked 155 in mobile data consumption

Jio Era

Roaming charges abolished. Entire country as one market

Most affordable data in the world: Rs 15 per GB

Digital onboarding: 15 min TAT

Domestic voice call made free and unlimited

Handful simple and transparent plans

Every customer treated as king (for Jio)

4G devices for an effective price of Rs 0

India leader in mobile data consumption