From the recent report India’s largest telecom operator Airtel has reported a loss of Rs 480 crore (before taxes) for the first time in their service of fifteen years. On the other hand, the Aditya Birla led Idea has reported a loss of Rs 1020 crore before interest and tax after adjusting for exceptional items.
The Indian telecom sector is going through one of the worst phases ever, but Reliance Jio is unstoppable. Already the Mukesh–Ambani–led Jio has disrupted the market with unlimited voice plans bundled with free high-speed 4G data. The data prices have come down by a precipitous 90 ppercentwith the industry teetering from one challenge to the next.
The Next Big Step: Jio 5G Network
Reliance Jio currently has one of the largest 4G network in the country. The company has been able to build the largest next-generation all-IP data network. Jio uses the latest 4G LTE and VoLTE technology and is now all set to deploy the next-gen 5G technology and beyond.
Currently, the company has a total spectrum footprint of 1,108 MHz across three spectrum bands. It has bands presently ranging around 800 MHz, 1800 MHz and 2300 MHz band in 22 circles. All the circle has an average life of over 15 years.
As Reliance Jio has tightened their belt to cover 99 per cent of the whole population of the country by the end of the current pecuniary, the worries remain countless. The incumbents are even struggling to remain operational under the current circumstances.
The company has now started to target the post-paid and international segments, which will add to further losses. The companies are not even able to compete against each other as the pricing pressure remains vulnerable to all the market threats.
Hence, Jio is now targeting to cover the rest of the segments intensifying into the current operational areas to achieve 99 per cent of the country’s population.
The Increasing Numbers
Reliance Jio claims that they have earned a net profit of Rs 723 crore. The company stands at a turnover of Rs 23,714 crore in the current year of its commercial operations. At the end of the March 2018, the company has 186.6 million subscribers.
Reducing Data & Call Rates
The voice call costs have seen a serrated drop by 58 per cent. Also, the data rates have fallen down drastically by 90 per cent with the industry struggling badly to stay buoyant.
The Government is soon rolling out Ultra-Fast 5G technology and the full action plan to meet the 2020 deadline of 5G, according to the Jio’s president Mathew Oommen.
The cost has experienced a gigantic transformation in last 1.5 years since Jio entered the market.
While the outlook for the telecom industry looks desolate, Jio is going out to amplify their network and subscribers base.
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