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HomeArticlesNew MediaThe RJio jin is out
Saturday, 08 October 2016 11:48

The RJio jin is out

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On 1st of September 2016, during the AGM of Reliance Industries, Mukesh Ambani announced the commercial launch of his dream child Reliance Jio, India’s largest 4G high speed broadband network based on the latest IP technology with the picture of the PM, Mr Modi on a huge back screen, epitomizing the Digital Revolution in the country. The service commenced on 5 September and  Mukesh  promised, it will offer free voice calls to all subscribers till 31 December 2017. The network also promises compelling apps, free digital content, superior digital services and over and above, lowest possible tariffs. The announcement was made in the Reliance Industry AGM.

Reliance Jio is the India’s first all IP network, Mobile video network, true 4G,  Voice over LTE (VoLTE), robust Data network built for high speed Internet services; is Future Proof – 5G, 6G ready. "Jio's 4G network covers 18,000 cities and towns, and over 2 lakh villages. By March 2017, we will cover 90% of India's population. It will be largest 4G network today," declared Mukesh. The network claims to charge the lowest data rate globally.  Reliance Jio 4G service is currently in beta (trial) phase, and the company claims to have more than 1.5 million users on the network already. The Preview offer, which was restricted to Lyf handsets earlier is now open to most smartphone brands. 

Appreciating the passion and hard-work of his 24 year-old twins Isha and Akash who are also working for Jio, Mukesh commented, “Jio is the creation of the young, by the young and for the young. Isha and Akash are directors at Jio. They have been hands on leaders and represent the large contingent of young people at Jio."

With the long awaited launch of RJio services, India enters into another era of mobile digital technology. Although Airtel started its 4G services much earlier, the real game has begun now when the competition is at its best.

  The Technology

 Reliance Jio uses the Voice over LTE technology (VoLTE). VoLTE is a new protocol for transmitting voice data over the LTE network. While 2G and 3G networks are circuit-switch based, 4G or LTE networks utilize Packet Switching. When a call is made over a 2G or a 3G network, a certain amount of network bandwidth is assigned to that call as a pipeline, which does not terminate till the call ends. On a VoLTE network, voice calls are broken up into packets of information, sent over the full data pipeline and then reconstructed at the receiver’s end. The result is that voice information can be carried over a higher bandwidth pipe, resulting in better call quality.

It is essential to understand that LTE also referred to as 4G-LTE is a wholly IP-based communications protocol. Existing carriers have all 2G, 3G and 4G setups on their network, allowing data to go through the 4G band while pushing calls through the 2G/3G band. While LTE is the next generation data transmission protocol with higher two-way bandwidth, it is capable of only transmitting data. VoLTE is the way in which a voice call can be converted to digital packets and transmitted over the LTE network. In effect, VoLTE is a subset of the LTE technology. Reliance Jio’s network is purely LTE, and does not have any 2G and 3G bands and as such, calls made on this network will only be VoLTE based. Therefore, in order to use the feature, you must have a handset which is VoLTE enabled.

Reliance is manufacturing its own 4G Mobile sets in China under the LYf brand, selling it’s services bundled in these phones that cost from Rs 2,999/- upwards.  Phones come with complimentary Jio apps like Jio Music, Jio TV, Jio Cinema, Jio mags etc. worth Rs 15,000/-, instant eKYC based Aadhaar Card activation, nationwide free calls to any network, no roaming, simple tariff plans, extra discounts for students, enterprise friendly solutions, and first platinum services makes Reliance Jio unique from other incumbent telecom providers in India.

The Big Disrupter

1.Jio's 4G network covers 18,000 cities and towns, and over 2 lakh villages. By March 2017, it plans to cover 90 per cent of India’s population. It is the largest 4GE Network in India.

 2.Free voice calling facility for lifetime. No roaming charges and extra messaging cost on Blackout Days (public holidays). Data tarrifs start from Rs 19 per day to Rs 4999 per month. Jio offers Rs 50/GB data for month against Rs 250/GB plan by rivals making it the cheapest data plan available across the world. You don't need to wait for month end to get your bill, you can manage your account via My Jio app.

3.Reliance has tied up with around 20 smartphone brands including Samsung, Micromax and LG to bundle Jio SIM cards with them with free voice and data for three months.

4.Largest 100 per cent VolTe network which lets you simultaneously talk over the phone and use internet. It is designed in such a way that it can work with 5G, 6G and beyond.

5.Reiance Jio redefines the mobile experience for users with several built in applications like more than 300 live channels,  upto 6,000 HD movies on-the-go thanks to Jio Cinema,  Jio Beats is a library that offers its users 2.8 million songs, Jio Mags and News Xpress giving access to thousands of latest magazines and newspapers in 10 languages.

6.The JioFi router has been launched at just Rs 1,999.

7.All you need for an active connection is an Adhaar Card and 15 minutes! Just walk into one of the Jio stores for immediate activation. This service starts in Mumbai and Delhi and plans to acquire 6 million user per day, trying to make the experience simple and delightful.

8.Students can avail 25 per cent more data by presenting a valid ID proof.

9.A fibre home service will start soon from select cities and extend to top 100 cities. It also plans to reach out to enterprise customers by rolling out fibre cables. Plans are being made to fund startups to build platforms for digital businesses, targeting a Venture capital investment of Rs 5000 crore in 5 years.

Are the Voice calls really free?

Jio claims free voice calls as only LTE networks and not circuit switch based networks. Rajan Mathews, Director General of Cellular Operators Association of India (COAI) has a different opinion that since Jio is an all data network, it is not offering special tariff for data and voice, but only for data and if the customers are using some amount of data for making a voice call they are paying as data charges and not voice charges. If two people are making a voice call over VoLTE, it uses data and doesn’t go through voice channel. Here the data is consumed which is payable. Further, the person receiving the call will also incur data charges. 


Difference between Jio 4G and others

Airtel, BSNL and Vodafone are also offering 4G services for quite sometimes. However RJio is different as given below:-

a)RJio promises cheaper data, as low as Rs 50 per GB.

b)Jio is all 4G network and the calls will never shift to 3G or 2G where 4G is not available. It is on data, so will remain on 4G.

c)Consumers can expect lower phone bills, faster internet speeds and more data at the same price.

Competition is catching up

Not that operators like Airtel and Vodafone will sit quiet and watch RJio capturing their markets. Firstly, Jio is just starting and is already experiencing the teething problem. For creating such a large market immediately, it need Points of Interconnection with other service providers and it is taking a long time to get these required POIs from other incumbents. RJIL has been raising the issue of insufficient POIs as anti-competitive aimed at hindering the entry of a new operator. Such hurdles result in poor experience for RJIL customers who are trying to make calls to incumbent operators' networks. The Company has repeatedly appealed to the incumbent operators to create a fair and reciprocal framework of competition that is good for India and good for Indian customers. The daily exchange of accusations and blames is going on and even has reached the PMO. TRAI is also trying to resolve the issue as soon as possible. 

Analysts see current market leader Airtel Bharti to be the best positioned operator to face the challenge from Jio. The number two and three operators, Vodafone and Idea, are likely to lose more of their market share to Jio. While Jio has the capability of providing 4G services across 22 circles, Bharti can provide it in 15, Idea in 10 and Vodafone in 8 circles.

Vodafone has recently injected $7.2 billion (Rs 47,700 crores) into the Indian subsidiary ahead of the spectrum auction to invest on more spectrum and build larger network. 

Not only the incumbent mobile operators but RJio entry will even shake-up the television market. With high speed broadband available on affordable mobile sets to view more than 300 channels anytime and anywhere, who needs the cable TV or DTH.  Atleast, the Gen-Next and the rural market will be badly affected.

The Future

RJio will try to disrupt the market in order to grab a large initial bite in already competitive scenario with present incumbent players as they are likely to come up with targeting specific usage of voice, data and/or both.  Free voice calls and pricing data well below existing tariffs has already forced incumbents to recalibrate their tariffs lower. Although, free propositions made by Jio could attract consumers, it is unlikely to cause an immediate churn by the way of consumers leaving existing networks. Consumers will maximize the use of ‘free’ but immediate switchover to Jio may not take place. People will wait and watch. However, one thing is sure that mobile consumers in India are surely going to have a ball of a time.

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