Business Insights

Jio’s ₹4000 plan to disrupt India’s Telecom Market

0
Jio ₹4000 plan to disrupt India’s Telecom Market

A few days ago, it has been reported that Mukesh Ambani is planning to roll out ₹4,000 smartphones in collaboration with Google. Reliance Industries Ltd. has asked local suppliers to expedite production in India so they can make upwards of 200 million smartphones throughout the following two years. A conceivably huge lift for the nation’s innovation desire and an admonition shot to rivals, for example, Xiaomi Corp. This new Jio phone would run on Google’s Android and these phones will be promoted with low-cost wireless plans from Reliance Jio.

Ambani on a “Mission” with Jio

Mukesh Ambani is on the mission to change the nation’s smartphone industry as he did in wireless services, where his aggressive prices and basic plans made him the predominant power. The very rich person is additionally adjusting himself to the Indian government’s arrangements to construct more homegrown assembling, a potential lift for domestic manufacturing agents like Dixon Technologies India, Lava International and Karbonn Mobiles.

“India still has 300 million mobile subscribers trapped in the 2G era, their feature phones keep them excluded even from the basic users of the internet at a time when both India and the rest of the world are standing at the doorsteps of 5G telephony.”

Mukesh Ambani, few weeks ago

With this new ₹4,000 smartphone, he aims to provide low-cost 4G services to everyone and wants to create a better India with fast 4G technology.

But, Reliance’s 2G Mukt Bharat might deal a serious blow to Telcos. This new mission got Airtel and Vodafone-Idea (Vi) worried because there is a massive 2G subscriber base in India. According to March 2020, Airtel has 13.5 Cr 2G users and vi has over 17.4 Cr 2G users which means 47% of Airtel’s users and 60% of Vi’s users are on 2G.

Solution to a problem

Let’s discuss the main reason behind rolling out the new smartphone. When Jio launched its free calls and cheap data services in 2016 so it was unsuccessful in shifting 2G subscribers to Jio. The problem behind this is Jio’s 4G sim only works in 4G smartphone and in 2016, the price of the smartphones was expensive for low-income groups and they couldn’t afford it and that’s why they had to manage with 2G technology only.

Mukesh Ambani’s new weapon of launching ₹4,000 will surely boost local manufacturing in India and promote “Make in India.”  According to the data released by the Ministry of Commerce (MoC), smartphone imports are lesser than exports as local production is ramping up. Smartphones exports in August 2020 totalled Rs 1781.1 crore by worth, higher than March’s Rs 976.3 crore. Imports, however, were Rs 1050.1 crore, far higher than March’s Rs 13.4 crore.

Talking about the components used in the manufacturing of smartphones such as chipsets and others. Generally, almost all the major components are imported from China and assembled in India. But, if talk about this new smartphone, so we personally don’t think that Mukesh Ambani would import much or none components from China. There is a prominent reason behind why he will not import components from China i.e., Our Honourable PM Narendra Modi Ji supports him very much in every aspect so he cannot engage in any activity which is not in the favour of India or hurts the sentiments of Indians.

View on ITC, McDowell & Marico

Previous article

Indian App Store Saga

Next article

Comments

Leave a reply