It s time to say hello to Reliance Jio
The prospect of the Big Boy of oil and gas, Reliance Industries, muscling its way into the telecom sector has been watched with much interest in recent years.
So, will the entry of Mukesh Ambani Reliance Jio Infocomm (RJio) into the fray force the top playpatagonia outlet reno store hoursers to rethink their strategies?It has been nearly four years since the company first successfully bid for and won spectrum for offering data services on a pan India basis. But the venture has not commenced patagonia better sweater jacket naturalactive operations yet.
In the meantime, patagonia discount ventura3entrenched players in the market have emerged much stronger and have enhanced their revenue share. Even in the broadband space, BSNL, Airtel, RCom, Idea and Vodafone have very strong presence. These operators together command nearly 85 per cent market share.
In wireless modeIn the specpatagonia discount ventura0trum auction this February, RJio bid for spectrum to offer voice services in 14 circles.
It also signed tower sharing agreements with several players. But even after these moves, what its bouquet of offerings will be is unclear.
It now appears that RJio woupatagonia jackets where to buyld not just be a data services provider but would offer a combination of broadband (wireless) anpatagonia down sweater hoody reviewsd voice services. Recent data from the telecom regulatorpatagonia nano puff cheap indicate that nearly 92.5 per cent of all internet consumptpatagonia discount venturaion in India takes place through the mobile wireless mode.
This means that patagonia mens better sweater jacketRJio will first have to look at adding a substantial number of mobile subscribers first before getting them hooked to its data and internet plans.
In the mobile services space the top three operators have a 70 per cent revenue market share.
Other prominent players such aspatagonia outlet store washington RCom, Tata Teleservices, BSNL and Aircel too would compete for subscriber and revenue share. So, RJio task is certainly not going to be easy.
One patagonia arizona ranch for saledifferentiated strategy could be that, given that the metropatagonia discount ventura1s and top cities are already saturated, it will set its sights on smaller cities.
A recent report from the telecom regulator shows that while urban teledensity is 139.7 per cent, the figure for rural areas is just 43.7 per cent. So there is an undertapped market to target for RJio.
Not for tariff warThen, there are reports that it may offer 4G LTE (long term evolution) services, where speeds are likely to be faster than even 3G offerings.
But handset compatibility would need to be worked out and smartphones need to be configured to work with 4G technology.
The company has invested an estimated $8 10 billion thus far in capex and spectrum charges; so it is unlikely to start a tariff war as a new entrant. It would know from the experience of new entrants in the last few years that playing the tariff war against seasoned incumbent players is a sure way to lose patagonia guide jacket 6742money.
While over time RJio may emerge as a strong fifth or sixth player in the telecom market, trying to race to the top through tariffs would surely mean a race to the bottom.
The industry itself simply cannot afford any more tariff wars, as evidenced by the kind of erpatagonia discount ventura2osion in margins and realisations of operators that it led to during 2009 12.
