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  • Category: Miscellaneous

    Reliance Jio is it bad for the Indian economy

    Reliance Jio is hugely popular with the common man.
    In the last week of September, Telecom Regulatory Authority of India, TRAI has reduced the interconnect usage charge (IUC) from 14 paise to 6 paise applied by the telecoms. The companies stand to loose Rs2250 crores in 3 months.

    The new Reliance Jio 4G phone is apparently 40% subsidized. In Karnataka alone, the 6 competitors have lost 22.36% of their earnings. Aircel has lost nearly 52% of their earnings.

    Jio has basically snatched the cake from its rivals. It has managed to capture the market and eat into the profits of its competitors.

    Not being an expert by any shot, I can see that the telecom operators have taken us for a ride and made huge profits in the past. Will have at least now give back some of their earnings to the customers that have been loyal to their companies by not switching to reliance jio.

    In the long run, I can see job cuts, salary cuts, shutting down of smaller units of the suffering companies, impact on the share prices. Ultimately does it mean that we pay back indirectly later on for the freebies given by the Jio.
  • #611267
    Well we cannot give all credit to Jio. Just yesterday I had my new New Jio phone to my hand. The hand set is small and compact with minimum features. But I am afraid the battery back is very nominal and given the data availability and usage of the same, surely one has to keep power bank recharging kit with them. My connection has not yet started and I have not tested the voice and other things. Let me come back to you after two or three days when the MNP would be complete and I shall use the new phone with new features. In India new things are welcomed and if it has the power to sustain people would support it. Same is the case with Jio.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #611295
    I have changed the title from 'too good to be true' to is 'it bad'.

    Tata Teleservices/telecom is planning to shut down because of mounting losses. The first big venture in Tata's 149-year history to be shut down Is finalizing exit plans for its 5101 employees. Don't know the status of other telecom companies.

    So the question Ultimately does it mean that we (tax payer) payback indirectly later on for the freebies given by the Jio that is drowing the competitors.

  • #611297

    Definitely, once the competitions die down, the survivor will definitely make merry. This is the rule of the business. Same is the plan of Jio also. It is sad a company like Tata is going to say goodbye to 5101 employees. My brother was working with them only till recently. Luckily he got selected for a better post in another company in Chennai and joined in that company last month. He is lucky in coming out. But initially, we have paid high amounts to one company after some years we may have to again pay still more amount another company. Overall we are burdened. It is same in all the fields. But one thing is true, the employees of this telecommunication field may have some bad times in future. People should realise early and look for alternatives.

    always confident

  • #611334
    I heard that Reliance GSM to be closed, like wise Tata Docomo has no takers , and hence loss making units are starting something new and again gaining the confidence of customers, and Jio is on that line.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #611340
    Reliance Jio has introduced a lot of competition in the market and it is very clear that earliar other operators were charging with good margin and now if the volume is captured by Jio benefiting by low margins but high volume, others will have problems in sustaining their business.

    There are job cuts in other companies but Jio is recruiting. Business is like that and when there is cut throat competition only the capable stand out.

    It is not first time that Reliance is monopolizing the business. If we recollect when Reliance started their business in polyester and polystyrene raw materials, they became the biggest in that and for some time there was no one to compete with them. You can say it the power of surplus funds or whatever but the truth is they are aggressive players and know their focus well.

    Knowledge is power.

  • #611432
    Glad to see the replies, tough competition, not good times for telecom these employees, monopoly in a particular industry and a good cash base can make it a one-sided contest

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