By far we know how Jio came into being, what were the technicalities involved and what is the Jio revenue model.
In case you missed anything:
- If you have no or little idea about Jio, visit here: Reliance Jio – What it exactly is? (Part-1)
- Want to know how Jio came into being, visit here: Why a new Telecommunication company by Reliance? (Jio Series- Part 2)
- Having idea about revenue model? No! Visit here: The revenue model (Jio series Part-3)
LYF Phones and the JioApps are also making a lot of fuss in the market. How will they help Ambani to strengthen his grasp over the wanted market ? This step might seem a bit irrelevent that why a company making SIM cards is providing it’s apps and it’s own Smartphone line!
In this final article of Jio series we will be extending our discussion over this. This is the “part 4” of the Jio series.
What is the deal behind the LYF phones?
Few months back, buying these LYF phones was the only way to get access to the Jio SIM card as they were launched under the Jio unlimited preview offer.
The story goes something like this:
- Reliance contacted China as there they could find cheap manufacturers of their phones. They bought the old 4G phones which no one wanted to buy and hence the sellers would nearly give them away (this may be the oversimplification of the facts). Apparently, they have five manufacturers in China including ZTE and Intex.
- They manufactured the phones for Ambani and then the devices were just re-branded and sold in India.
- So the phones whom no one wanted to buy, when coupled with unlimited preview offer became everyone’s choice.
How this helped Ambanis?
Jio had it’s own user base as most people will not buy a phone just because of unlimited 4G. This user base helped Jio to run it’s pilot plan and testing it in the real world. This gave them the information about the bugs and other drawbacks of the network without much negative pubilicity.
This was the reason for the LYF Phones.
What is the noise about JioApps?
This is the real masterstroke. The real money will be earned through the Jio apps. To know how keep scrolling:
The various apps launched by Jio are:
- JioPlay – Live TV and content of the previous 7 days,
- JioOn Demand – Movies on demand,
- JioBeats – Unlimited music,
- JioMags – Magazines for the mass,
- JioNews – Switch off the TV and open your phones for news,
- JioXpressNews – News in short,
- JioDrive – Indian cloud storage,
- JioSecurity – Protection from digital threats.
They are providing services in almost every sector and hence with proper strategies it will be a cakewalk to capture the entire market.
JioPlay is providing free live streaming and who knows maybe Reliance will produce their own TV shows. So JioPlay has the capacity to become the Netflix of India. The same goes for JioBeats as it is providing free legal music and has the capabilty to be India’s Spotify.
The point which shows how clever Mukesh Ambani is and to what extent he can play with the minds of the masses is that JioApps are free till 2018. This is because till 2018, majority of the user base will get addicted to the JioApps and will be ready to pay the subscription fees too. Another interesting thing is that JioApps will only work on Jio 4G. This fact will attract other network users to opt for Jio too.
How will this benefit the nation?
- LYF phones are cheap and affordable. They will connect the masses better and will reduce the technology gap the rural areas are facing.
- JioApps are providing quality services. So, I don’t see any negatives in paying for it. Further they are Indian and “desi”. *smiles everywhere*
- Cheap 4G is a double sided sword. It is fast and it is affordable.
Jio is ready to capture the entire market and apparently only Airtel has the potential to compete with them. If Airtel will not compete, Jio will do some serious damages to Airtel. On this note, lets end this final article of the Jio series.
Hope you liked it!