Monday, July 6, 2015

Reliance Jio Plans to Disrupt India Mobile Market

When Reliance Jio enters the Indian mobile market, it will do so offering voice and data services at about half--or possibly less than half--of current market tariffs. Some potential competitors believe it is possible voice services could be offered free.

In a market where voice services represent 80 percent of industry revenues, that would likely satisfy anybody’s definition of a disruptive attack.

Reliance Jio will offer data and voice services at half or less than half the current rates at Rs. 300-500 a month, Ambani said in June 2015 at the Reliance Industries annual meeting.

Few would expect the price attack to last forever, however. A reasonable expectation is a year-long assault that reshapes market share, making Reliance the fourth-largest mobile service provider, and likely dooming a number of smaller firms to failure in the process.

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