Jio turns one. Lets see changes seen by telecom market on completion of Jio’s first year of launch.

One year ago Reliance Jio services were launched for subscribers use and telecom industry has witnessed many transitions during this period of one year. There have been many changes in telecom sector since launch of Jio. In other words, Jio launch has created tsunami in the market what has completely changed the dynamics of telecom industry. One year ago, prelaunch of Jio, 1 GB internet data was offered at price of Rs 250 which is now being offered by companies at average cost of Rs 50. Apart from this, there working practices & strategies of telecom companies have completely changed. Here we assess the major changes witnesses by telecom post the launch of Jio.

The data war has brought lots of benefits and advantages for the customers. New mobile SIM is now activated in thirty minutes, mobile service providers are pouring lucrative offers for customers, the unused data has started carried forward and there are several benefits being offered to retain existing customers & make new customers. Telecom companies faced problems of reduced revenues & market shares, mergers to meet the competition & operations cost and industry has been divided in factions.

In telecom war, winner is the customer – Till 5th September 2016, when Jio was not launched, data services was not affordable for common man use as it cost Rs 250 for 1GB data. When Jio announced data services free of cost till 31st March 2017 & post 31st March services as low as Rs 1 per day, other companies too offered many offers to the customer who were rapidly switching their sides to Jio. Now, customers are getting data at very economical price, free calls, SMS, roaming and other benefits. As promised by Jio to provide free calls, SMS & roaming services, other operators had to change their strategies to be in the market.

Use of smartphone increased to many folds – In last one year, use of smartphone, especially the 4G phone has increased to many folds. At this time, more than fifteen crore 4G handsets are being used which numbered 4.7 crore a year ago. So, there has been three times more 4G users added in span of one year.

Consolidation started in industry – The 2016 multiplayer telecom industry is no longer multiplayer now. In war of tariffs, small players like Aircel, Telenor, MTS had no option except getting merged with big establishments. Mergers of Idea Cellular with Vodafone, Reliance communication with Aircel & MTS and Airtel prospective merger with Videocon mobile are believed to be consolidation initiatives of companies to take on Jio.

People’s dependence on phones increased – Few days after Jio launch, demonetization was implemented. In shortage of cash people’s dependence upon e-wallets & money transfer increased. Jio offered unlimited data to customers, thus people did not care about data overuse and paying hefty costs of data.