echo ''; Clamorworld » In everyday life every one of us comes across various experiences, incidents which we either don’t share with anyone or share with family members and friends. Print media, electronic media and various medium shows the news, but its ends up showing one sided of the story. We never come to know the other side of story. With so much happening every day, every second across our neighborhood, society, and world it’s difficult for the news media to cover all the news. Many times we have felt wish we could share our voice, opinion, thoughts with the world. Many a times we have felt the frustration, anger and helplessness for not being able to do anything about an incident. Have you ever felt, for a good cause, you need support, but don’t know how to garner the support and attention. So, now you have an option “www.Clamorworld.com“. This is a platform to share everything you want to. A website 100% runs by the people for the people. The world is waiting to listen to your voice, the voice which has kept you suppressed so far. If you do not want to share the incident, event personally, please send it to us at contact@clamorworld.com, and we will share it on your behalf and assure to keep your name confidential. Let’s make this world a peaceful and a happy place to live. » 13 years later, Reliance set to ‘disrupt’ India’s telecom market again

13 years later, Reliance set to ‘disrupt’ India’s telecom market again

 

Reliance Jio’s much-anticipated launch on Thursday offering free voice calls and data services at very low tariffs resembles a similar “disruptive” strategy that the company had adopted 13 years ago.

In 2003, Mukesh Ambani-controlled Reliance India Mobile stormed the market with a “Monsoon Hungama” scheme, which offered mobile connection and a handset at R501.

As incumbent operators jostled to keep their customer base intact, tariffs plunged, making mobile phones affordable for millions and breaking down class barriers.

From about R5 then, a call now costs as low as 45 paise per minute despite intervening years of inflation and growth that makes the rupee go less far.
With voice calls no longer expected to remain the dominant money spinner, a similar tariff war looks imminent on data services as browsing battles move to palmtops.

Reliance Jio has placed its bets firmly on low tariffs to push data volumes, which is evident from the strategy of making calls free. The move will force incumbents to lower rates.

“We foresee operators gradually moving towards simpler all-you-can-eat plans wherein subscribers would be offered unlimited voice and fixed data access for a lumpsum amount, rather than the forest of foggy options available today,”said Ajay Srinivasan, director at Crisil Research. “Tariffs will tumble, and we project average data realisations halving to less than R0.10 per MB by 2017-18, compared to less than R0.20 per MB currently.”

In 2003 when Reliance entered the market, it was dominated by a few incumbent players, including Airtel, which commanded a significant market share in the voice telephony business.
The conditions are different this time round.

The data sector is still very much in its infancy and remains a fledgling line of business for operators.

This will make it easier for incumbents to adjust their data tariffs to match Reliance Jio’s offer.

“The Indian telecom sector is at an inflection point of massive data adoption, repeating the precedence of the voice market growth trajectory (2007-2011),” said Tanu Sharma, associate director at India Ratings. “This will necessitate continued investment in the key resource—spectrum—during the coverage expansion phase.

“Competition has to gear up. Operators have to make increased investment both in terms of coverage and quality,” Rajan Mathews, director-general, Cellular Operators Association of India (COAI), told HT.

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