According to Report by IFC (A Harvard Business School Affiliate) Reliance Jio’s disruptive entry in India led to $10 billion in annual savings for consumers
Reliance Jio’s entry in Indian market has led to $10 billion
in annual savings for consumers and will expand India’s per capita GDP by about
5.65%.
Reliance Jio has made data accessible and affordable, with average prices
per GB dropping to INR 10 from INR 152, bringing the internet within the reach
of a larger section of the Indian population. Such a drastic reduction in data
prices has also allowed newer segments of society to use and experience
internet for the first time.
As per our calculations, even the most conservative estimate shows that
due to Reliance Jio’s entry, the annual financial savings to the consumers
would be to the tune of $10 billion.
According to the report, through widespread network effects, Reliance
Jio’s entry would boost India’s GDP by about 5.65%, if everything else in the
Indian economy remains constant. This growth will not only be limited to
telecom sector but also spread across various externalities that arise out of
the internet economy.
Jio’s remarkable entry into telecom sector has changed the
telecom sector completely. It has changed the basis of competition by offering
free lifetime calling to its consumers in an industry that earns 75% of its
revenue from voice.
With Jio’s entry into telecom sector, the country became the highest
mobile data user in the world consuming over 1 billion GB data every month as
compared to 200 million GB earlier.
By the end of 2017, Reliance Jio users on an average consume almost 10 GB
data, 700 minutes of voice and 134 hours of video every month. No doubt, data
usage in the country has soared and now India is second largest country in
terms of app downloads. Such level of data consumption was unimaginable few
years back.
Jio’s offerings is not only limited to data and voice but it
also offers host of other utility and entertainment services to end consumers
ranging from banking, education, health etc. and thus catering to multiple
social-economic needs of its customers.
Source: https://indianexpress.com
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