Story of JIO: Winning smart or playing rough

Abstract

In 2016, Reliance Jio made its entry into the telecom sector of India, which changed the landscape of the industry. Today, India has the tag of “Cheapest Mobile Data in the World”. This was not the scenario prior to 2016, where the internet and data prices were considerably high. The entry of Jio with very low prices for data was followed by the competitors lowering their tariffs as well, and this sent the data prices spiraling down. Reliance Jio is the telecom arm of the Indian Multinational Conglomerate- Reliance Industries. Currently, Jio is the largest service provider in the telecom sector by subscriber base, and as of Sep 2020, is the 5 th largest company in India by market capitalization. Jio has over the years grown from a provider of internet data and calling services to an integrator providing a wide variety of products and services and is lined up to be the major forerunner in the race for 5G introduction in India. The question however that has buzzed around Jio, almost since its inception is that, are the prices of Jio predatory? Has it been subject to some unfair advantage that has sent it skyrocketing while many incumbents have struggled to keep pace? Or has Jio driven innovation by leveraging their competencies? In this report, we try to analyze the context of the same- the Indian Telecom Industry, the global scenario- and the advent of Jio, its key decisions, and resources that have contributed to its becoming such a large force in the sector.