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JIO
 Mission – Take Digital Experience to
Remote Areas of India
 Target – To reach 100 million subscribers
as against current 150 million subscribers
 Not just another player in the market but
with clear vision and solid targets
 Ambani says “Data is the new oil”;
Reliance Industries mainstay is the
petrochemical business ; Data is what he
bets on.
BUILT ENTRY BARRIERS
 Country’s top billionaire industrialist did
6 years of rigorous preparation touching
every nook and corner of the country
 Made investment of Rs. 1.5 trillion with
free voice and data
 Reliance bought a company Pan-India
4G airwaves in 2010.He made
investments to tower FIBRE technology
in last couple of years
ARRIVIAL OF JIO
 The industry have been disrupted and the entry of
the game changer has put pressure on existing
players in the market
 Enticing customers with freebies, understands Indian
customers are very price sensitive
 Consolidation - Smaller Players have exited the
market and some have merged to compete with the
deep pockets or be the market leader
 Existing Players want to retain their customers and
increase Average Returns Per User
 Airtel and others in the market might benefit because
of Jio, as after their welcome offer of free trial period,
customers might be back to their loyalties.
Complementing
 The data speed and apps, make it the
perfect platform for Modi’s Digital India
Programme
 As the use of internet increases and
spreads to remote areas, even others are
benefited. For ex. Apps like Facebook
grows in India.
 Cash flows through partnership with other
companies like Uber
 By their increasing subscribers and
success and name the investors and
demand on share increase.
Channels of Revenue
 Jio is advanced – all in one – app family
To access services online <Payment, Money,
Messaging, News, Shopping, Ride>
 Jio hasn’t started earning its profits yet as it is
yet giving free services. It has Profit from
subscriptions, regular tariff charges
 Lyf Phones – very low prices – customers
have cheaper option to reap benefits of plans
by Jio
 Increase in sales of handsets – monitor
customer preference – roll out other offers –
create stickiness to customer loyalty
AIRTEL
 Mission – Hunger to win customers for life
 Vision – To enrich lives of customers, obsession is to
win customers for life through an exceptional
experience
 Tagline – The Smartphone Network
 Setup new towers – Fastest network and market
leader
 Reached the public, increased users in the market
with ads and promotions
 Known for Innovations – cont. tech upgradation,
value added services, highest standard of customer
care, Lifetime Prepaid, Hello Tunes, My Plans,etc
 Satisfied customers
 Faces strong competition from rivals
aiming to be market leaders
 Only telecom to deleverage itself in next
2 years
 Got the pinch with Jio s Unlimited free
voice calling
 Experts advise investors to consider
Airtel stock as a long term investment
oppurtunity
 Merge with Telenor
Rising tensions
 Airtel claims itself to be Officially the
Fastest Network by Ookla s Testings.
 But Jio says, Ookla gives such awards
on money and the word officially is
misleading to the public as if it from
govt. like DoT or Trai
 Jio says due to lack of interconnect
points – calldrops
 Airtel blames Jio for calldrops as due to
underpreparedness
Market
 Oligopoly market
 Few sellers
 Interdependency
Market
 India - Fastest growing mobile market in
the world
 Airtel’s net profit fall by 55% because of
price war started by Jio
 Loss of Airtel’s 7.7 million data users in
3 months of Jio s entry
 R-Jio added more than 51 million in 3
months, 72 m in 4 months of entry –
world record!
2012 market share
2016 subscriber base in market
The subscriber additions in market
has seen decrease in last months
 The already data users have become jio
users
 Reduction in the rise of subscriptions
 Airtel cut 80% price to check The Jio
Effect
 The debt burden
Airtel -10k crore debt
Jio - 49k crore debt
Idea - 2k crore debt
Vodafone – 47k crore debt
 Risk of default in payments
Sources of Data
 Business Today
 Business India
 Economic Times
 India Today - Business

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Telecom Market JIO and Airtel

  • 1.
  • 2. JIO  Mission – Take Digital Experience to Remote Areas of India  Target – To reach 100 million subscribers as against current 150 million subscribers  Not just another player in the market but with clear vision and solid targets  Ambani says “Data is the new oil”; Reliance Industries mainstay is the petrochemical business ; Data is what he bets on.
  • 3. BUILT ENTRY BARRIERS  Country’s top billionaire industrialist did 6 years of rigorous preparation touching every nook and corner of the country  Made investment of Rs. 1.5 trillion with free voice and data  Reliance bought a company Pan-India 4G airwaves in 2010.He made investments to tower FIBRE technology in last couple of years
  • 4. ARRIVIAL OF JIO  The industry have been disrupted and the entry of the game changer has put pressure on existing players in the market  Enticing customers with freebies, understands Indian customers are very price sensitive  Consolidation - Smaller Players have exited the market and some have merged to compete with the deep pockets or be the market leader  Existing Players want to retain their customers and increase Average Returns Per User  Airtel and others in the market might benefit because of Jio, as after their welcome offer of free trial period, customers might be back to their loyalties.
  • 5. Complementing  The data speed and apps, make it the perfect platform for Modi’s Digital India Programme  As the use of internet increases and spreads to remote areas, even others are benefited. For ex. Apps like Facebook grows in India.  Cash flows through partnership with other companies like Uber  By their increasing subscribers and success and name the investors and demand on share increase.
  • 6. Channels of Revenue  Jio is advanced – all in one – app family To access services online <Payment, Money, Messaging, News, Shopping, Ride>  Jio hasn’t started earning its profits yet as it is yet giving free services. It has Profit from subscriptions, regular tariff charges  Lyf Phones – very low prices – customers have cheaper option to reap benefits of plans by Jio  Increase in sales of handsets – monitor customer preference – roll out other offers – create stickiness to customer loyalty
  • 7. AIRTEL  Mission – Hunger to win customers for life  Vision – To enrich lives of customers, obsession is to win customers for life through an exceptional experience  Tagline – The Smartphone Network  Setup new towers – Fastest network and market leader  Reached the public, increased users in the market with ads and promotions  Known for Innovations – cont. tech upgradation, value added services, highest standard of customer care, Lifetime Prepaid, Hello Tunes, My Plans,etc  Satisfied customers
  • 8.  Faces strong competition from rivals aiming to be market leaders  Only telecom to deleverage itself in next 2 years  Got the pinch with Jio s Unlimited free voice calling  Experts advise investors to consider Airtel stock as a long term investment oppurtunity  Merge with Telenor
  • 9. Rising tensions  Airtel claims itself to be Officially the Fastest Network by Ookla s Testings.  But Jio says, Ookla gives such awards on money and the word officially is misleading to the public as if it from govt. like DoT or Trai  Jio says due to lack of interconnect points – calldrops  Airtel blames Jio for calldrops as due to underpreparedness
  • 10. Market  Oligopoly market  Few sellers  Interdependency
  • 11. Market  India - Fastest growing mobile market in the world  Airtel’s net profit fall by 55% because of price war started by Jio  Loss of Airtel’s 7.7 million data users in 3 months of Jio s entry  R-Jio added more than 51 million in 3 months, 72 m in 4 months of entry – world record!
  • 13. 2016 subscriber base in market
  • 14.
  • 15. The subscriber additions in market has seen decrease in last months
  • 16.
  • 17.  The already data users have become jio users  Reduction in the rise of subscriptions  Airtel cut 80% price to check The Jio Effect  The debt burden Airtel -10k crore debt Jio - 49k crore debt Idea - 2k crore debt Vodafone – 47k crore debt  Risk of default in payments
  • 18. Sources of Data  Business Today  Business India  Economic Times  India Today - Business
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