Jio Promises Regarding it's SIM.

Earliest Proposal of Jio?

When jio came in Indian market it come up with two main agenda which attracted the public.
1. To provide free data.
2. To provide free calls and sms.

Why did Jio levy this charge on customers?

1. Free voice calls on Jio network.
2. High tariffs on other 2G networks.

  • This causes the 35-40 crore 2G customers of other networks to give missed calls to Jio customers. Jio users then call them back , since calling for them is free.
  • Jio network receives 25 to 30 crore missed calls on a daily basis.  
Interconnect Usage Charge. (IUC)

  • IUC is the price that a telecom operator pays another to terminate a call.
  • The originating network pays the receiving network a fee.
  • If a Jio subscriber calls a Vodafone subscriber , then Jio will pay at the rate of 6 paise per minute to Vodafone.
  • The company claims it paid Rs. 13,500 crore in these interconnect payments to other networks over the last three years.
Jio's Logic

  • The IUC regime gives incentive to the older networks to provide bad services to it's poorer customers on 2G networks.
  • New companies like Jio which have invested in 4G VOLTE technology are being penalised for implementing new technology.
Jio's Achievement 

  • From it's launch in September 2016, Jio is the number 1 telecom company in India from a subscriber market share angle - it has 27.8% compared to Airtel's 27.6%.
  • If it grows as it's current rate , Jio could well control 45% of the market by 2022.

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