How Does Mukesh Ambani Retain Jio Customers?

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    As of March 2018, Jio's market share had widened to 20 percent while the subscriber share made up for 15.8 percent in just 19 months of launching its services. Its dirt-cheap data caught the interest of most consumers in India, shifting to Jio as their primary contact number for communication. Apart from leaving the rivals struggling, the operator also changed the rules of competition in the sector. More and more customers flocked to Jio, making it the third-largest telecom operator in the country by market share, and researchers continued to analyze the recipe of Mukesh Ambani-led network's success.

    How Does Mukesh Ambani Retain Jio Customers?

    A recent survey by Bank of America-Merrill Lynch cited in Bloomberg explained how Jio moved the focus to mobile phones as the medium of mass entertainment. It said that customers were using the network "primarily" to watch live television. "The telecom aggregation apps like JioTV and JioCinema are turning into one-stop places for consumers to view all content as they do not have to download the individual over-the-top streaming apps," the report said.

    Thanks to Jio, the consumption of mobile data by an average user is gone up to 2GB per day compared to 0.23 GB before September 2016 (Jio launch date), as per the data from Telecom Regulatory of India. As per consultancy firm EY's forecasts, the data is expected to reach 18 GB a month in the next 5 years.

    Free services for the first six months of launch, cheap data package rates, followed by making of 4g phones by Jio fuelled usage of data over smartphones in India. Customers now get 1 GB data for about Rs 15 compared to Rs 300 earlier (rough estimates).

    Out of 1,000 Jio users surveyed by Bank of America-Merrill Lynch, two-thirds of them said that they used mobile data to stream videos online. 68 percent of these people surveyed said that they download videos on their phones and 23 percent said that they have not changed their usage despite Jio's entry. The result shows that Jio has changed people's use of their smartphones from just for communication purposes to entertainment.

    Read more about: jio mukesh ambani
    Story first published: Saturday, June 23, 2018, 14:16 [IST]
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