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Chapter 8 Jio-Bharti Airtel Data War

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 171

Chapter 8
Jio-Bharti Airtel Data
War and Strategy
Anil Kumar
BML Munjal University, India

Mohan Balaji
BML Munjal University, India

Ujjwal Krishna
BML Munjal University, India

Mohit Yadav
BML Munjal University, India

ABSTRACT
The chapter examines various viewpoints in regards to Reliance Jio and Bharti Airtel.
This includes the entry of Jio in the telecom space along with the difference in the
market Jio bought right after its introduction of the services for public. The focus
area for the research has been the secondary sources. A complete understanding
of both these companies has been taken into account for this study to pick up the
points that both Jio and Bharti have been lacking upon and areas in which one
has surpassed the other by attracting a new set of consumers into their family. The
chapter as recorded by the facts presented through the Telecom Regulatory Authority
of India Analytics Portal witnessed that Jio proved to have an upper hand in terms
of the quality of service, which included data speed and tariffs. The other side of
the story shows Bharti Airtel’s lack of dominance in 4G experience delivery after
Jio’s entrance.

DOI: 10.4018/978-1-5225-4038-0.ch008

Copyright © 2018, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
 Jio-Bharti Airtel Data War and Strategy

INTRODUCTION

It was in 2009 when the 4G Spectrum of the Indian Telecom Industry was at auction
and an unlisted firm named Infotel Broadband Service limited got down into the
race and bagged all the 22 telecom circles broadband spectrum. In 2010, Reliance
Industries bought 96% stake in Infotel Broadband Service Limited which resulted
in Reliance industries becoming the Parent Company and Infotel Broadband being
their Telecom Subsidiary. In 2013, Infotel Broadband Service limited was renamed
as Reliance Jio Infocomm Limited (RJIL) .The Company initially went of with beta
testing by late 2015 with initial users being the Reliance Family Members i.e. their
Employees. After successful results of the testing Phase, Jio launched its commercial
service for the general public on 5th September 2016. Reliance Jio Infocomm Limited
is owned by one of the most powerful personality in India - Mukesh Ambani whose is
the Chairman of Reliance Industries Limited. Reliance Industries as a conglomerate
has diversified verticals for business which includes Petrochemical, Retail, Textiles,
Energy etc. It is one of the Prominent Business Groups of India which has been
featured in Forbes 500 list for the highest market capitalization in Indian Industry.
On September 5, 2016 Jio launched its commercial operation for the public by
providing services under a suite called the “Welcome offer” through which the user
would be entitled to get unlimited data, sms & calls throughout the national circles
with access over other operators as well. The initial entry of Jio created curiosity
among consumers as True 4G Experience was guaranteed and that too without any
charges. This led the Incumbents like Airtel, Vodafone and Idea to get a pressure of
increase in the competition. Not much of the surprise within the initial months of the
Welcome offer the majority of Incumbents Consumers went on to join the Jio offer.
The reaction with which Bharti and other player responded didn’t helped them as
the Regulatory Violation which the players reported as against Jio to the Telecom
Regulatory Authority of India(TRAI) which quoted violation of the Telecom Services
through the freebies that were offered by Jio. In addition to the above move Bharti
reportedly didn’t supported Jio further and blocked the Point of Interconnection
(PoI) which resulted in Call Failures by the Jio users. All these chain of activities
had framed a competitive stage for both the players in the near future and with the
mind-set Jio has been addressing its users it would not be wrong to categorise that
the Consumer has been the Ultimate Winner who has been capitalizing on this
opportunity to earn and experience a true digital world with an array of freebies.
What India seeks in the coming years is to be a digital economy and with that
vision the Current Government has worked tremendously till date which has also
been complimented very well by the Pioneer of Reliance, Mr. Mukesh Ambani
through the Introduction of a True Digital Experience called “Jio”. The Public Private
Partnership model initiated by the government of India through this Jio experience

172
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