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Reliance Jio's Business Model: How Will Jio Make Money With Its 'Crazy' Plans?

Reliance Jio's business model is really simple

You, as a customer will get 2x to 3x more value for your money, yet Jio will make make as much profit as existing telecoms by pricing things differently.

Why Mukesh Ambani wants to enter networking field so badly?

This story requires us to know why Mukesh Ambani is investing so much in yet another telecom company especially when there is already another company named Reliance Communications. In 2002, when Dhirubhai Ambani died, there were some major ownership issues between his two sons - Anil Ambani and Mukesh Ambani. After some public feud between both the brothers for the control of Reliance empire, their mother intervened and split Reliance into two parts in 2005. Anil Ambani got telecom, power, entertainment and financial services business while Mukesh Ambani received Reliance Industries and IPCL.

Although Anil Ambani got the Reliance Communications, it was Mukesh Ambani who started it and revolutionized the Indian mobile industry by reducing the call rates in the early 2000s, which made mobile phones affordable to Indians. It was his baby all the way, while Anil Ambani was not even having a seat in its board of directors.

That is not all. To prevent Mukesh Ambani from making another telecom company and competing with Reliance Communications, they had inserted a non-compete clause in the agreement.

In 2010, as soon as the non-compete agreement was scrapped, Mukesh Ambani bought 96 percent stake in Infotel Broadband which had won 4G spectrum in all sectors in India. Later they renamed it to Jio, and started building fiber optic network around the country.

Now, if you do not know much about Jio, then I recommend to read one of my previous answers. It will brief you about how awesome their network is. How likely is that Reliance Jio 4G will revolutionize the internet market in India.

This is not just about personal rivalry. With his experience in starting up Reliance communications, Mukesh Ambani knows that existing network providers are not good enough and that he can easily compete with them and win. Telecom is also a very lucrative business. It is like he gets to control Internet/ communications in India.

Jio’s business model

Everything Jio have done till now is intended at making money. Their tariff plans may look unbelievably awesome, but they will make more money by giving free voice calls than what the other companies make by charging you for it!

In India, the monthly average revenue per user (ARPU) the current network providers get is around Rs. 150 per month. That is the money they get on average from each user. If you spend over Rs250 per month, you are considered a high value customer.

Which plan would you choose? If you are a voice-only kind of person, then you would be okay with the Rs. 149 per 28 days plan, as you will get free unlimited voice calls. But, even though you are not explicitly paying for voice, you are already paying over Rs. 150 per month, thus their ARPU will by default be as good as the current players.

If you are someone who uses over Rs. 150 worth of voice calls every month then it is a totally awesome plan for you. But, my point is that other telecom companies make about Rs. 150 per month on average from each user by charging for voice, SMS, data and roaming. Jio will be making the same/more amount of money on average from each user even after providing SMS, roaming and voice calls for free, by just pricing things differently.

Now, if you are a moderately data using person, which plan would you choose? Did you see that there is no plan in-between the Rs. 149 and Rs. 499 plans? This is basically a psychological trick to get you into the Rs. 499 plan. Many people will compare it with the smaller plan and see that you are getting Unlimited 4G night data and choose at least the 499 plan.

They do have some smaller plans at Rs 19, 199 and 299, but these plans do not really offer any more value than their main plans as they have even less validity. Also, it offers less data per rupee. For example the 299 plan only offers 21 day validity and 2GB data. This may be adequate for many people, but if you ever exceed the 2GB limit, then you will have to purchase ‘add-on packs’ and these add-on pack will have the validity of the main pack. So, if you recharge on day 20 of this plan, then you will get only one day validity for the add-on. For practical purposes, you will be spending more for lesser value through these packs. The Rs. 19 pack maybe useful for those who want to use some Internet and voice calling once in a while.

Now, again see that if you want to really use more than 4GB of 4G, then you have to spend double and move to the 999 plan. Did you notice that there is nothing in-between?

Also, notice that all these plans are for 28 days which can easily be perceived as ‘a month’ by most people. If we divide the number of days in a year with 28, we will realize that we are paying for 13 ‘billable months’ in an year. (365/28=13.03)

What does 1 GB cost?

If we exclude the unlimited night data and the Wi-Fi data which many of us may not have access to, then the price per GB of these plans will be-

0.3 GB for Rs149      =  Rs 497/GB (Will anyone choose this for data?)

4    GB for Rs 499        =  Rs 125/GB

10  GB for Rs 999      =  Rs 100/GB

20  GB for Rs 1499    =  Rs75/GB

35  GB for Rs 2499    =  Rs71/GB

60  GB for Rs3999     =  Rs66/GB

75  GB for Rs 4999    =  Rs66/GB

Did you see that even their highest plans doesn’t go as low as their advertised Rs 50/GB rate. Jio came up with this Rs. 50/ GB rate by adding the Wi-Fi access you are getting, but I excluded it because it is not feasible for most people to utilize this as Wi-Fi hotspots are not available everywhere. It would be useful for you if there is a Wi-Fi hotspot near your house, at your work-place or your college.

How can they provide unlimited night data?

Once you have built an entire network infrastructure, it really doesn't cost anything for the network provider to give you Internet data. I have explained this in the form of a story in one of my other answers – What is the cost of the Internet? How much extra are we paying?

The reason why most Internet providers limit your data is basically because they do not have enough bandwidth to handle so much data. In the case of Jio, they have already laid an awesome fibre optic network which is designed to even handle the 5G and 6G. So, they do not have much of the data bandwidth problem.

Other telecom companies were primarily made to handle voice calls and they have limited data bandwidth. Also, other companies do not own nationwide fibre network, so they have to pay to use the fibre network of other companies. This is the reason other companies don’t usually provide unlimited plans.

Jio currently have the ability to provide truly unlimited data plans, but they will not do so, because that will decrease their profits. They have already decreased prices on average by 50 percent. This means people will anyway be happy to use their services. If they provide more GBs in the lower end plans, then lesser people will buy their higher plans. So, currently their pricing is optimally placed to increase their profit. When other companies reduce their prices, it is likely that Jio will also further reduce their prices.

And, the unlimited night usage is only valid for hours in-between 2AM and 5AM.

How can they provide unlimited free voice calls?

Jiio will give you free voice calls over any network if you have 4G LTE supported smartphone. Again, Jio has an all IP network, so all voice calls will go through the Internet just like Skype or WhatsApp. There is not really any point in charging for voice anymore. It is an outdated system and there shouldn’t really be any surprise in why Jio totally abandoned it.

If hypothetically, Jio had tariff for voice calls, then some company similar to WhatsApp would have launched an app through which you can do free voice call over the Internet (in fact WhatsApp itself has a voice-call option). Once everyone has a good Internet connection, people would anyway use such services to make their calls.

How Jio makes money with LYF phones?

Many of you may be knowing about the LYF phones. Few months ago, purchasing these phones were the only way you could get access to a Jio SIM Card to get their their free unlimited preview offer. Did you ever wonder why they have so many versions of these phones?

Nearly all of their phones have very low specs compared to the competition at the price point they sell. The only reason why people bought their phones were because of the unlimited Internet+voice calls preview offer.

This was a very clever move by Jio. The reason why there are so many versions of these phones is because of this business model:

1. Jio would go to China and then buy previous generation unsold 4G phones for dirt cheap prices in      bulk. No one wants to buy these phones, so obviously the manufactures will happily sell it for a          very low price. (This is oversimplification, they really do not have to buy old phones, instead they      need to just choose a manufacturer who is ready to build them phones with whatever previous            generation components are cheaply available in the market.) note- This fact is not confirmed by the    author.

2.Then it is re-labeled and sold in India. This is how they have several phones with totally different        specs.

3. A totally outdated phone which no one would otherwise buy is coupled with Jio preview offer and       now everyone wants to buy it just for the Jio offer.

4. Jio can now sell these phones and make profit. Plus, they get to test their network and solve the           bugs. Plus, they can venture out into the mobile device market.

    Brilliant idea, isn’t it?

The real money is in Jio apps

Many people may consider their apps to be bloatware and don’t even install it. I also thought of it as a bloatware when I first heard of it. But, when I tested them out, I saw real potential in them.

1. JioPlay : This has the potential to become a TV channel company. My prediction is that Jio will  soon release something like Google Chromecast to provide this service directly to TV The ability to watch Live TV channels on smartphones is also a cool idea, especially in India. This may become the most used app in rural areas too.

2. JioOnDemand : This has the potential to become the Netflix of     India. Imagine if those who currently pirate movies had an option   to get those movies in HD quality legally for nearly free. It can         benefit both the users and the producers.

3. JioBeats: Legal music. It has the potential to become Spotify of India.

4. JioMags : Most popular magazines in eBook format. My cousin who reads tech magazines on a                            regular basis loved it.

You get the point? They can make any type of app in the future and dominate that category with minimal efforts.

They are currently giving these apps for free till 2018. But, that is done so that they can get maximum users to get addicted to these apps. Then they can start subscription charges for these apps. Instead of paying for your TV service or Movie-DVD or Magazines, Jio wants you to pay them.

Apart from that, these apps are locked to Jio network. So, a person using any other internet service won’t be able to use it. Thus, this will force other people into joining Jio. Currently, only Airtel is capable of properly competing with Jio in the 4G market, but they too may not be able to release such apps on time.

Will Jio reduce my bills?

Mostly, yes.

If you are someone who uses more than Rs. 150 worth of voice calls every month, then you should see huge reduction in bills.

If you are someone who uses lot of 3G/4G data, then you should see over 50 percent reduction in your bills, provided that you do not increase your data usage. Also, you will get superior 4G network coverage with better speeds. Also, 3 hours night unlimited, Wi-Fi hotspot access, free voice-calls, free SMS, no-roaming charges, free access to live-tv and other apps are an awesome bonus. It is really a good deal.

But you will likely spend the same or more

If you are someone who uses 5GB of data every month, and you were currently spending Rs. 1,000 per month with the current providers, you will be happy that you can get same amount of data for Rs. 500.

But, you are likely to spend the same amount of money over the time and consume 10GB of data for Rs. 1,000, instead. This is because 4G speeds are awesome and now there are many more ways to spend the data. And, since you have the budget for it, you are likely to spend more.

So, even though you are getting much more value than the current operator, Jio can still make the same/ better revenue. This may not be applicable to everyone, but may happen to most people.

Is this good?

Yes, we need companies like Reliance to make such bold moves and invest in India. This is good for everyone. It is a win-win situation. It will increase the progress rate in India and will improve our quality of life. It will also give much needed jobs to millions of people

.

Their LYF branded phones are also some of the cheapest 4G phones in the world. Although it have low specs, it would bring 4G to the homes of many people.

Also, we absolutely need competition in this stagnated telecom industry which is currently dominated by players who may have secretly made agreements with each other to not compete on the basis of price. Why do you think Idea, Airtel and Vodafone have similar looking pricing which charges Rs. 250 for one GB data?

If you need to know how awesome their network infrastructure is, then I really suggest you read this answer of mine. It is totally relevant and useful here. How likely is that Reliance Jio 4G will revolutionize the internet market in India?

Conclusion

By just making their tariff plan in such a way that most people interested in 4G have to pay over Rs. 500 per month, Jio will be making way more money than the current players. Most of the high value customers of other players will instantly port to Jio, and they may be able to achieve a huge market share in next couple of years.

You, as a customer will get 2x to 3x more value for your money, yet Jio will make make as much profit as existing telecoms by pricing things differently.

"When their apps, devices, and fiber services are added up, they are here here to win multiple  business verticals. And, at current stage, they are almost unstoppable".

FIFA 17 Up for Pre-Order in India: Price, Release Date, and More

HIGHLIGHTS

FIFA 17 will be available from September 29 in IndiaThe game will cost Rs. 3,999 on discMuch like last year, FIFA 17 on disc is exclusive to Amazon India

FIFA 17's price has been revealed for India. It is Rs. 3,999 on the PS3, PS4, Xbox and Xbox 360 and is up for pre-order now. The PC version is digital only as it has been for the last couple of years. And much like FIFA 16, it will be exclusive to Amazon India. If you're wondering why FIFA 17 and all of EA's games are exclusive to Amazon, we have a post detailing this at considerable length.

The price of Rs. 3,999 comes as a relief considering that Battlefield 1, another high-profile EA game is up for pre-order at Rs. 5,199.

Interestingly, Amazon India only lists the Standard Edition of FIFA 17 which comes with an eight match FIFA Ultimate Team (FUT) Loan Item of Eden Hazard, Anthony Martial, Marco Reus, or James Rodriguez, five FUT draft tokens, and Special Edition FUT kits. The Deluxe Edition and Super Deluxe Edition haven't been listed yet. Safe to say they should be in days to come.

Furthermore, the announcement of FIFA 17's price and pre-orders this early is indicative that Amazon India is confident of getting the game on time. A major plus point considering how the grey market and parallel importers got the jump on the e-commerce giantlast year.

FIFA 17 will be available in the US from September 27 and the rest of the world (India included) from September 29. The game will be on EA Access for the Xbox One a week prior to release and on PC through Origin Access. You can also pre-order the game digitally.

On the Xbox One and the Xbox 360, FIFA 17 Standard Edition is for Rs. 3,500 digitally and comes with an eight match FIFA Ultimate Team (FUT) Loan Item of Eden Hazard, Anthony Martial, Marco Reus, or James Rodriguez, five FUT draft tokens, and Special Edition FUT kits.

And then there's a FIFA 17 Deluxe Edition available on the Xbox Store as well which includes up to 20 FIFA Ultimate Team (FUT) Jumbo Premium Gold Packs for 20 weeks, access to FUT kits early, an eight match FUT Loan Item of Eden Hazard, Anthony Martial, Marco Reus, or James Rodriguez, and a three match team of the week loan player, one per week over 20 weeks. This costs Rs. 4,240.

For Rs. 4,500 though you can get the FIFA 17 Super Deluxe Edition from the Xbox Store. This doubles the number of Gold Packs and three match team of the week loan players. The rest of the entitlements remain the same as the Deluxe Edition.

The same editions are available on PC, although the pricing differs. Rs. 3,499 on Origin gets you FIFA 17 Standard Edition, while the FIFA 17 Deluxe Edition will set you back by Rs. 4,799. If you have your sights set on the FIFA 17 Super Deluxe Edition, expect to shell out Rs. 5,499.

On the PS4 you'll be paying Rs. 3,375on PSN for FIFA 17 Standard Edition,Rs. 3,999 for the FIFA 17 Deluxe Edition, and Rs. 4,499 for the Super Deluxe Edition. If you're still on a PS3, expect to pay Rs. 3,330, Rs. 3,999, andRs. 4,499 for digital editions respectively.

These come with all the same freebies as the Xbox One and PC versions with the addition of a FIFA 17 theme. Keep in mind that buying digitally usually means a large download size and the lack of resale value, making the physical version a valid option especially in countries like India where Internet connectivity isn't the greatest.

We found FIFA 16 to be an interesting beast in our review. The core gameplay veered towards simulation with thoughtful ways that retool some of its most basic actions and your approach to a match. However it's hamstrung with flawed execution to some of it's headline features like FUT Draft and women's teams. How EA rectifies this in FIFA 17 remains to be seen.

Pokemon go Evolving pokemons and its fun !!

Pokemon a imagenary creatures that now is seems to be around us the new pokemon go is'nt a game but it is way to live the world which we want to live in childhood In the game we have to collect some candies of particular pokemons a theb transform them in new creature which really is a fun.

https://youtu.be/gKqeuQsLESQ

I have tried one its really a fun. If you have also tried it comment below

Pokemon GO : want to catch "Pikachu'' !!

Fan of Pokémon!! want to catch Pikachu in Pokémon Go I also want that :

so lets catch em all...

If you have just going to start your pokemon journey then you can straight away follow these steps and if you have started before  then you have to choose another google account for pokemon Go and start new journey.

Follow these steps below:

1. Sign up with a new Google  account. Professor Willow will offer you a choice o three Pokemon-Squirtle,Charmander, and Bulbasaur.

2.  Ignore all three and walk away. When you are sufficiently far from them, the same  three Pokemon will be visible again. 

3  .Ignore them again and walk away. Repeat this step again till you'll notice that Pikachu has appeared alongside the three Pokemon. 

4.Tap on Pikachu, throw the Pokeball and catch it.

If you don't get Pikachu in one or two attempts then don't loose hope as if you keep trying and don't be bored then you will surely get Pikachu registered in your Pokédex. I have found this method and its a proven method to get favourite pikachu. I firstly don't know this method and started my journey with Charmander but when I know this method can't control me to get a Pikachu right away.

So try this method and let us know this works for you comment below:

BAN on Whatsapp, Are you joking

What if Whatsapp is BANNED ? 

On Wednesday a RTI activists Sudhir Yadav from Gurgaon registered the 

petition in Supreme Court on ban not only on Whatsapp but also on other online messaging platforms like hike, viber etc.

What's the matter : In the updated WhatsApp message is enabled with the 256-bit encryption, which cannot be hacked. This petition is inspired after this update.

RTI activist said its not in national interest and compromise with security. With this encrypted services criminals can easily communicate and make plans. “Even if WhatsApp was asked to break through an individual’s message to hand over the data to the government, it too would fail as it does not have the decryption keys either,” the petitioner said. Decrypting a single 256-bit encrypted message by supercomputer would take hundreds of years.

This wasn't a small thing as now whatsapp could become a communication medium for malicious works. But Supreme Court dismissed this plea and directed RTI activist to approach Telecom Disputes Settlement and Appellate Tribunal (TDSAT) of India.

Worlds Cheapest smartphone, ready to dispatch

Freedom 251, which cost 251 rupees or less than 4 dollars the world cheapest smartphone, the product of India based startup Ringing Bells finally maker declares that 2 lakh phones are ready to dispatch and customer will start getting delivery from 30 June.

Specifications of Freedom 251-

Processor           1.3 GHz Quad Core
RAM                  1 GB
3G.                     Yes
Camera   

Primary              8 MP

Front                  3.2 MP
Battery               1800 mAh
OS                     Android 5.1( lollipop )
Variant               black and white
Storage

Internal               8 GB

External             upto 32 GB

Founder and CEO Mohit goel stated "we are ready with nearly 2 lakh freedom 251 headsets, we will start delivery from June 30 and after first phase of delivery we will again open the registration for freedom 251 and those who wish to buy the handset can register".

Problem for Ringing Bells starts from the launch of handset even FIR also registered against the company. Freedom 251 alao called a "fraud". Experts also said no phone could be manufactured for less than 2000 rs.

Company first planned to sell 25 lakh headsets in its launch in February this year but they received 7 cr registration that crashed the payment gateway within 3 days the company now stated  " we learn from our mistakes and decide to go silent till we came out with the product now we have 4 inch dual sim phones ready for delivery ". now let's wait till 30 June and see what happen?

After cheapest smartphone Ringing bells now decide to launch Cheapest LED TV  that will cost less than 10000 rs and said they have 1 lakh pieces in stock.
Have any query about handset comment below: