The country’s biggest conglomerate, Reliance Industries Limited’s telecom arm, JIO is expected to mop up 100 million subscribers by February/ March of 2017. The statement was made by Nitin Soni, who is a director Fitch ratings India.
He believes that the soon to be telecom giant JIO is using a very smart strategy to acquire customers and make them loyal to their brand. By offering free calls, messages and internet data till the end of March they have acquired over 52 million subscribers till date and they are on course to acquire a 100 million users.
It has to be noted here that many users may leave JIO once it starts getting charged, but it still is a huge number of subscribers in the first year of operations. Even if JIO starts charging customers, analysts do not believe that they will lose more than 5 – 10 % of their user base.
A major reason for users to choose JIO has been the pathetic data and call quality that all telecom service providers give. Call drops has been a huge challenge for service providers and customers. The competition in the over heated telecom sector has become tougher with the entry of Relaince JIO. With competition at its peak, consolidation has begun with the acquisition of MTS and Aircel by Reliance Communications, which is incidentally owned by Anil Ambani, who is Mukesh Ambani’s younger brother.
As of now, Airtel and Vodafone seem to be the only two players with the spectrum and other assets to compete with the deep pockets of Reliance JIO.