Hi Leonid, its not as simple as it seems to be....
Majorly there are 3 types of cost that a telecom company bears...
first is the cost of spectrum, which is highest among all 3, may be in tune of 14000 crores per circle or like that...
second is buildup and maintenance of infrastructure like cell towers and their operation
third is advertisement, outlets and staff... which is lowest among these 3
Now let move on to year 2002 when rcom launched, it was dream and passion of mukesh to enter and establish reliance in telecom
after their division, rcom goes to Anil and as we all know he dont know how to manage it
In year 2007, mukesh again started thinking of telecom industry
but as I told its his passion so he studied the industry very deeply...
telecom is very fast moving industry, fast in terms of technology
At that time we were living in 2G and drifting towards 3G but in rest of world 4G was already introduced
Shifting from 1 technology to the next is very very costly and painstaking
and to remain in bussiness a company have to cover its cost in a span of 3 years of launch, its mandatory
Airtel has aalready good customer base at that time so its compelled to shift from 2G to 3G bearing all costs may in tune of 3-4 lakh crores, I dont know exactly
But Jio as a new entrant, has a choice
I took a very bold decision and instead of entering at that time rather it started preparing for next technology which mukesh estimated to be just 4-5 years far
So cleverly jio invested 1 time in 4G whereas other players invested 2 times i.e in 3G and 4G
and are in pressure to cover costs of both
actually real cost of 1Gb data is just may be Re.1
but the cost customer bears is of infra and spectrum that company has already invested at time of auction
Now jio saved lot n lot of money in 3G
and this is where he found chance to offer services free for 6 months coz he's not in pressure of 3G losses
Airtel still couldn't recovered the cost of 3G and now is compelled to upgrade infra for 4G and auction of 4G was also costly due to jio
There is no cheating here....
He also saved a lot money by not providing any support for voice
its transponders work only for data
In short an airtel tower has to maintain transponders for both voice and data
but a jio tower has only for data.... savings coz of lesser maintenance
If we are facing probs in jio then its normal as its just a baby company with life of only 8 months
they were kept testing thier for past 2-3 years and already estimated that what type of response they will get but hoping for 100 marks and then actually getting them, makes lot of difference
all of their equipment are in stress and in backend I know they improving at very very fast pace
and future of jio wont be same as rcom
Their management is entirely different form inexperienced to highly experienced
Dont go by just name Reliance
we open a showroom and hope for good sales but what happens actually when we have mad rush in festive time.
Its a simple story for any businessman
Thanks
I am from IT industry
Majorly there are 3 types of cost that a telecom company bears...
first is the cost of spectrum, which is highest among all 3, may be in tune of 14000 crores per circle or like that...
second is buildup and maintenance of infrastructure like cell towers and their operation
third is advertisement, outlets and staff... which is lowest among these 3
Now let move on to year 2002 when rcom launched, it was dream and passion of mukesh to enter and establish reliance in telecom
after their division, rcom goes to Anil and as we all know he dont know how to manage it
In year 2007, mukesh again started thinking of telecom industry
but as I told its his passion so he studied the industry very deeply...
telecom is very fast moving industry, fast in terms of technology
At that time we were living in 2G and drifting towards 3G but in rest of world 4G was already introduced
Shifting from 1 technology to the next is very very costly and painstaking
and to remain in bussiness a company have to cover its cost in a span of 3 years of launch, its mandatory
Airtel has aalready good customer base at that time so its compelled to shift from 2G to 3G bearing all costs may in tune of 3-4 lakh crores, I dont know exactly
But Jio as a new entrant, has a choice
I took a very bold decision and instead of entering at that time rather it started preparing for next technology which mukesh estimated to be just 4-5 years far
So cleverly jio invested 1 time in 4G whereas other players invested 2 times i.e in 3G and 4G
and are in pressure to cover costs of both
actually real cost of 1Gb data is just may be Re.1
but the cost customer bears is of infra and spectrum that company has already invested at time of auction
Now jio saved lot n lot of money in 3G
and this is where he found chance to offer services free for 6 months coz he's not in pressure of 3G losses
Airtel still couldn't recovered the cost of 3G and now is compelled to upgrade infra for 4G and auction of 4G was also costly due to jio
There is no cheating here....
He also saved a lot money by not providing any support for voice
its transponders work only for data
In short an airtel tower has to maintain transponders for both voice and data
but a jio tower has only for data.... savings coz of lesser maintenance
If we are facing probs in jio then its normal as its just a baby company with life of only 8 months
they were kept testing thier for past 2-3 years and already estimated that what type of response they will get but hoping for 100 marks and then actually getting them, makes lot of difference
all of their equipment are in stress and in backend I know they improving at very very fast pace
and future of jio wont be same as rcom
Their management is entirely different form inexperienced to highly experienced
Dont go by just name Reliance
we open a showroom and hope for good sales but what happens actually when we have mad rush in festive time.
Its a simple story for any businessman
Thanks
I am from IT industry
I was referring to Ethics [which takes into account the total business sphere of this particular company]. Can't specify points [legally being laid down in courts but being ignored by current govt.] in my response due to this platform not being the right medium.
