Errc.docx

Eliminate

Raise

Which factors that the industry has long competed on should be eliminated ?

Which factors should be raised well above the industry’s standard?

1. Price wars on voice calling services 2. Higher tariffs when network on roaming

1. Data services technology (3G to 4G to 5G) 2. Higher internet speed 3. Increased network availability, especially in rural areas 4. More affordable voice and data packs

Reduce

Create

Which factors should be reduced well below the industry’s standard? 1. Hassle in obtaining a connection 2. Poor internet connectivity 3. High priced data packs

Which factors should be created that the industry has never offered? 1. Newer data technology – LTE VoLTE 2. Connectivity in rural areas 3. Low priced voice calling and data services

Reliance Jio has offered free voice calls ever since its launch since it believes that customers should pay only for only either voice or data. They extended the free services also on roaming. The data rates have been slashed to an extent that it costs only INR 50 (USD 0.70) per GB with no upfront payments, making it one of the cheapest in the world. Whereas the average charges per GB for data in India is a high of INR 250 (USD 3.50). To combat Jio’s move the other telecom operators have reduced its data charges but require subscribers to pay an upfront payment. This is clearly because they cannot replicate the lowcost business model of Reliance Jio.

Subscribing to a network was much of a hassle with extensive paper-based formalities. However, Reliance Jio simplified the process by requiring only one national identification document, Aadhar Card, to link the customers details to the connection. This move made Reliance Jio an even more attractive telecom operator to go to. Jio also has smartly identified the need of data services for students and offers 25% more data for students. To widen its customer base, Jio also offers extremely cheap smartphones for people who want to access the internet but cannot afford the smartphones. Buying the Jio handheld device along with the connection makes it a great deal for people who cannot or do not want to spend much. Thus, they captured that segment of the market as well which did not have a smartphone till Jio’s launch.