Reliance Jio Business Model: The sweetest data bait


Reliance Jio is created so much hype in India Telecom sector, with its offering. However, after looking at its business model, it could be concluded that is its just ‘The sweetest data bait.’ And for the same, I have published a report on my blog and introducing some part of it which will help you to know how Ambani is trying to attract the audience.

Reliance Jio, the simple and effective trap created by Mukesh Ambani is working as smoothly as ever, alluring people in its unlimited data bait. Surprised by what I have said. Well, you should be. The real truth is that Reliance Jio has cleverly  wrapped its hidden motive under the simple Reliance Jio Business model.

In other words, it clearly means that eventually, in the end, you sir going to dish out same or more money as compared to other network data provider.

Reliance Jio business model

Now, coming to the Reliance Jio Business Model, being the businessman Mukesh Ambani is, the Jio Business model is very clear –  to extract more money from the consumers by providing them with free voice calls as compared to the current tariff charges that you have to pay for the same to other telecom providers.

To make it more clear, currently the network providers get around Rs. 150 per month average revenue per user (ARPU). So, you will be considered a high value customer if you are shelling out more money on your network.

Coming to tariff plan announced by the Reliance Jio, the basic tariff is Rs. 149 per 28 days with free unlimited voice calls and an insufficient free data. This plan is perfect for those of you who are interested in only voice calling. You can see clearly, that with the 149 plan, Reliance ARPU is well above Rs. 150, even after the unlimited voice calls.

Reliance has simply changed their pricing tactics. They are making almost same/more money on Average user per month by charging you for the data and keeping the rest services including SMS, voice calls free. Whereas, if you have subscribed for the same amount of tariff from other telecom companies, then your plan would have included SMS, Data, and Voice calls too.

Now, if you are a moderate data user like me then the next best option would have been the Rs. 499 plan. At this point is where the actual game begins, a psychological trick to assure that you will fall for the Rs. 499. The logic behind this plan is that humans have a tendency to compare and the Jio business model is set so carefully that on comparing with the smaller tariff plans, you will immediately fell for the 4GB data + unlimited 4G night data and choose the Rs. 499 plan.

Reliance Jio also has smaller plans of Rs. 19, 199 and 299 offering fewer data per rupee. If you go into detail of these smaller plans, then you will find that they carry less validity and lesser value.  The 299 plan comes with a 2GB and 21 day validity and on exceeding the plan, you will have to go for the ‘add-on packs with the validity of the main pack. In reality, you will be spending more for lesser value. However, the Rs. 19 plan for a day is a better option for once in awhile usage.

Next, if you are more than an average user and have data needs of more than 4GB, then you will find that the next plan is Rs. 999, which is just the double of the Rs. 499 plan. I did find it strange to know that there’s no plan in-between the two of them.

Have you ever noticed that Reliance Jio and other telecom providers plans are only for 28 days? For you, it may mean as an equivalent to a month, but for the telecom providers, its means an extra billing cycle. Shocked! Yeah, me too. If you divide 28 days by 365 days of a year, the solution will be 13 billable months. Don’t believe me? Go, on try it yourself.

READ MORE at Reliance Jio Journal:

  • The Truth  Reliance Jio Rs. 50/GB
  • Unlimited Night Data
  • unlimited free voice call
  • Reliance Jio Apps – the Cash Cow of the Business model
  • Cashing on via LYF phones
  • The Effect of Reliance Jio on your Monthly Bills
  • Do we need Services like Reliance Jio

About the author

Rishabh Rajvanshi

Rishabh, with six years of experience in the newspaper industry, has co-founded The TeCake in 2013. Apart from writing and editing articles on Technology at The TeCake, he also contributes to other esteemed newspapers.

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