Reliance Jio's Audacious Bet: Disrupting India's Mobile Telephony and Data Market
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Case Code: BSTR547 Case Length: 20 Pages Period: 2017 Pub Date: 2018 Teaching Note: Available |
Price: Rs.500 Organization: Reliance Jio Infocomm Industry: Telecommunications Countries: India Themes: Disruptive Innovation |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In May 2017, the Telecom Regulatory Authority of India (TRAI) announced that Reliance Jio Infocomm (Jio), the telecom arm of India’s largest private sector company, Reliance Industries Limited (RIL), had cornered 9.29 percent subscriber market share as on March 31, 2017, to become the fourth largest telecom player in India. For the same period, Jio also stood as the top wireless broadband service provider with 108.6 million subscribers, which made it one of the fastest-growing mobile networks in the world.
Jio was launched by Mukesh Ambani (Mukesh), Chairman of RIL, in September 2016 with an initial investment of US$ 20 billion. Industry observers felt that the investment was humongous compared to the investments by other telecom majors. For instance, other telecom companies such as Bharti Airtel (Airtel), Vodafone Group plc (Vodafone), and Idea Cellular invested on expanding their network infrastructure to the tune of US$ 1.86 billion, US$ 1.24 billion, and US$ 1.21 billion respectively in fiscal 2016...
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