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  • Category: Club House Discussion

    How do you think Reliance Jio earns profit with those plans?

    Reliance Jio has launched really crazy plans. Though quite beneficial from the consumer point of view, one thing that really baffles me is how can they make profit with such plans.

    I know, once you have invested in infrastructure, there will not be much that a telco needs to spend on providing you the internet data. The reason why other telcos limit your your data is just to save bandwidth last their network will collapse. Jio on the other hand has no such data bandwidth issue. That could be one of the reasons why Reliance Jio is offering those plans. Same may go for voice calls too. Jio uses data for voice calls. Could that be the reason for those unlimited voice and data plans?

    I wish our techians can shed some light on this aspect.
  • #24493
    From what I have found out. The plans from the reliance JIO were not like old reliance "kar lo duniya muthi me" type. And they have this plan for limited time . So this was pure marketing gimmick and market disruption. So that is one reason the vodafone and others were not in panic. And they didn't changed their price structure for 2G and 3G immediately after JIOs ads. So it seems there is nothing for the competition to fear as of now. Besides CDMA technology being removed from the scene, all networks are just sharing the bandwidth.

    I am guessing this may not matter much for the average budget line consumers. And with this sort of market competition will reduce the data rate to such an extent that it will definitely help most consumers. A lot of things still need improvement though. Like for under 10GB, consumers should have some relaxation and then 2G data speed. otherwise charging high for data won't keep people into 4G plans and company may not profit at all.

  • #24504
    As far as as my info goes, the usage of data for almost services could be one of the reasons Jio is offering those crazy plans. Moreover, there are no intermediate plans- like between Rs. 149 and Rs. 499 - you have no other plan. So, if you are a heavy user, you will opt for the higher plan, just because you won't want to pay more by means of add on packs. Isn't it a marketing trick to get into a higher plan?
    Live....and Let Live!

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