Reliance Jio 4G User Acquisition Plan May go Wayward - Risk vs. Reward May Pinch in long Term


Reliance Jio turned very aggressive in their plan to launch impending 4G network. Loaded with fund which they generated through Bond offering also offered them lots of confidence that investors are positive about their plan.

In their quest of controlling end to end user base, they aggressively launched their branded LYF device and offering device bundled 4G data plan. Interesting step from their side but seems they missed to learn their misstep which happened during their Reliance Communication initial days when they offered bundled voice to end user to buy out the user an in 2012 -2013, Reliance communications voluntarily disconnected more than 20 million from their network and created a perception of one of the network with lowest ARPU

Recently, post facing the problem in pushing their low end LYF device with higher price range, Reliance Jio slashed the device price by 25% but attached two riders with device such as 2 year warranty and 3 months of free 4G. In my point of view and understanding around the segment; Reliance Jio is repeating the mistake again.

The target segment of the device is the entry level Smartphone user who is willing the experience of Smartphone. In that category of user segment the average balance never cross INR 100 and most are on prepaid model. Even though Reliance Jio offer 4G free for first three months, I dont see the repeat subscription of more than 5 to 7% from that category and APRU will not even $1.

 I wish Reliance Jio and LYF team for grand success in their strategy while I keep my finger crossed.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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