Reliance Jio

Group L
 Introduction: Telecom Sector in India

Telecom sector- rapidly evolving in wake of Second

innovation, which posed exponential growth largest
opportunities market in
Face changers of Industry- Smartphones, Internet the world
of Things application, Mobile Payments, and Mobile
Wallet Subscription Subscription
Continuous investment in research and technology
required
High base price of spectrum

Reliance Jio has already triggered fierce price war

Urban Rural Wireless Wired
among players
Questions over profitability of heavily debt ridden
business model
2
Growth Drivers in Telecom Industry

Utility of Mobile Revenues

internet penetration

License fees by Operational

government efficiency
Price
Availability of war Edge over
spectrum in competitors
auctions burden

Customer
Income level of Consumption
base of the
population
company
3
Internet Penetration in India

462 mn Internet user

internet base in the
users in country
Users growing India. Of expected to
at a CAGR of which grow at an CAGR
30% for the 80%use of 7.23% on a
last 10 years internet Year on year
through basis.
mobile

4
Network Health in India

In the past, 3G services have struggled because of lack of blanket

coverage
With adoption of 4G services the problem signal strength persisted
Operators like Airtel present in every circle, but traction less!
Challenge for Jio: To establish VoLTEs seamless presence in such scenario
Rural Areas: Low Utilization Towers with breaks in coverage/loss of signals
Urban Area: Call drops and congested network

5
Activities on Mobile Devices

6
Activities on a Smartphone

7
Smartphone Usage in India

Smartphone Adoption rate => Higher Adoption of

Apps + Browsing 8
Reliance Jio : A Background

Alpha Stage: Employee + Referral System

Beta Stage: Selected KROs thus targeting customers via PULL

strategy

Commercial Launch : September 5, 2016 pan-India

Targeting 100 million customers within one year of commercial

launch

Main goal: Shifting customer usage to LTE

9
Jios Offers Analysis

10
Competitor Offers Analysis
Airtel Vodafone

11
Market Opportunity
Only 50% of DEH base using Data!
Circle % Non Data UU % Data UU
UP East 57% 43%
Allahabad 56% 44%
Lucknow 58% 42%
Bihar & Jharkhand 50% 50%
Patna 57% 43%
Ranchi 41% 59%
Rajasthan 45% 55%
Jaipur 41% 59%
Jodhpur 49% 51%
Gujarat 49% 51%
Ahmedabad 50% 50%
Surat 46% 54%
UP West 51% 49%
Agra 47% 53%
Dehradun 53% 47%
Total 51% 49%

Around 11% of Data Enabled Handset is HSPA base! 13

Urban vs. Rural Data Subscribers
Datas Demand is Everywhere!!

Circle RURAL URBAN

UP East 50.85% 49.20%
Allahabad 46% 54%
Lucknow 54.70% 45.30%
Bihar & Jharkhand 48.50% 51.50%
Patna 48.10% 51.90%
Ranchi 48.90% 51.10%
Rajasthan 47.80% 52.20%
Jaipur 44% 56%
Jodhpur 53.40% 46.60%
Gujarat 45.90% 54.10%
Ahmedabad 45.30% 54.70%
Surat 47.20% 52.80%
UP West 50.80% 49.20%
Agra 51.80% 48.20%
Dehradun 50.30% 49.70%
Total 50% 50%
Not a huge divide between Urban & Rural 14
Area
Competitor Strategy for Data Users

Data Seeding Low MRP Play

Content Longer Validity

Offer Seeding Low Ticket Price
Seeding of Tickets

15
Jios STP Strategy

Segmentation Targeting Positioning

Demographic: Age: >15 years, Youth; Income: >1 LPA

Psychographic: Social Class: Middle class, Upper Class;

Lifestyle: Tech Conscious user, Multiple/ Differentiated Internet
Platforms ;
Geographical: Urban, sub-urban, small town and some rural areas

Usage: ARPU, Data usage, STD/Local calling

Jios STP Strategy

Segmentation Targeting Positioning

Want to target the quality subscribers- want to occupy the primary sim slot
High end data users
Value for money seekers

17
Jios STP Strategy

Segmentation Targeting Positioning

The only operator providing VoLTE services
High Quality Internet service provider for smartphone users on affordable
devices(LYF)
Position themselves as the only telecom operator who will charge one-tenth
of the standard telecom charges
Targeting a typical data-savvy user
Break-up of usage(on a Data benefit
User Type
typical day) required in a month
2 hours of video : 480 MB
Updating 10 apps: 100
MB
Heavy on video
10 web pages : 6-10 MB
1 streaming/downloadi Approx. 20 GB
30 basic IMs/emails:
ng
<1MB

TOTAL: 600 MB
2 hours of video calling:
400MB Updating 10 apps:
100 MB
Heavy on video 10 web pages:6-10 MB
2 Approx. 15 GB
calling 30 basic IMs/emails:
<1MB

TOTAL: 510 MB
50 songs : 250 MB
Updating 10 apps:100 MB
Heavy on audio 10 web pages:6-10 MB 19
3 streaming/downloadi 30 basic IMs/emails: Approx. 10 GB
Jios Promotion Strategies

Infrastructural support- Data plans operating at speeds of 8 to 10

Mbps.
E-health services
Integrated closed-app ecosystems
Competitive pricing
Exciting plans :
Unlimited texts , local or STD
Unlimited high speed night time 4G usage
Additional 25% data usage for students
Absolutely free roaming
20
BTL activities like installation of WiFi routers at prominent public
 Jios Value Addition for Customers
All IP network,
Positive 18000 cities
Perception and 2 lakh
villages
Acceptability Accessibility
Compelling
Applications Instant eKYC
and Content activations by
Aadhaar Card
A successful solution

Low overall Aggressive

cost for marketing and
regular users visibility
Affordability Awareness
Full banquet
of services Extensive
21

offered for Awareness

similar pricing campaigns
Problems for Jio

Poor Signal strength

Over-extended pilot phase- Tariff strategy still a mystery
Are the consumers ready?
Jioapp ecosystem- ClosedoffApp-telecom ecosystem
Data Speed has fallen with a rise in the number of users

22
Data Usage Pattern

240 MB/
200
Hour
MB/
20 MB/ Hour
35 MB/ Hour
10 MB/ Hour
5 MB/ App
0.6 MB/ Song Live
webpag Stream
500KB/
messa e Video Call
3KB/ Messagin
Messag ge g
Voice Call
e Update
App
Download
Browsing
Mail with
Attachmen
t
Mail

23
Way-Ahead

Need to smoothen inadequate spectrum mix

Openecosystem& third-party associations (Paytm, Netflix, Amazon
Prime,Hotstar)
Trigger demand and create the market
Acquisition of customers; strong MNP strategy
Partnering with more smartphone handset manufactures so as to
expand its outreach

24
THANK YOU!!

25