Mukesh Ambani's speech at Reliance Industries' 42nd annual general meeting confirmed the worst nightmares of incumbent telecom operators on Thursday. There was also a warning for rival service providers in the target he set for Reliance Jio as a major chunk of the 100 million new users will most likely be those switching over from existing services. According to this business tycoon, Reliance JIO will have the lowest data rate, while the voice calls and roaming facility will be available at free of cost.
Bringing in disruption in the Indian telecom industry, Reliance Industries today announced free voice calls and roaming services for users, while data would be charged at one-tenth of the prevailing market rates.
At present, no other telecom operator offers unlimited, full-speed 4G. None of this is to suggest Airtel and others haven't moved from the dumb-pipe era or that Wynk movies and music, Hooq, Eros and so many more entertainment networks that telcos are using will not prove a match.
The Reliance Jio service, he said, is based onfive pillars - network, devices, content, services and tariffs. Officially, Reliance maintains that it plans to launch commercial 4G services at some point in fiscal 2016-2017, which began in April. These plans will also offer free unlimited data at night. Unlimited SMSes will also be available to all plans except for the "S". Moreover, there are a day's charges starting at Rs 19, 199 and 299 with all the benefits of voice, data and SMS.
In a bid to fulfill prime minister Narendra Modi's vision for India, Ambani said, "World's demand for data is growing".
Jio "is future-ready, and can easily be upgraded to support even more data as technologies advance", said Ambani, in the report. Apart from this offers, it is also announced that the complete suite of Jio apps can be utilised free of cost for all the users until the next year December. Shares of Bharti Airtel dropped 8.99 per cent to Rs 302.
The next Jio plan is of Rs 999. "In our data plans, the effective rates will be 5 paisa per MB or Rs 50 per GB".
At the AGM, while announcing the tariffs of Jio services, also has declared about the 'Jio welcome offer, ' which is going to commence from 5th September.
With the launch of Jio, India's rank among cellular country users will shoot up to the top 10 list.