Reliance Jio has set a new revolution in the telecom industry by offering unlimited free calling and data services at a very minimal rate as compared to the other market players. In fact, the offers and services which were provided by JIO have proved to be the best to its users and it gained a lot of customer base in very less time. This all led to the Telecommunications sector change rapidly.
The rival companies tried their best to put restrictions through legal proceedings. They appealed to TRAI but JIO fought fair and is still able to sustain its position in the market. Among the rival companies, Airtel suffered the most.
As Airtel was the main network before JIO was introduced in the market, it had to drop its calling and network rates to retain its customers. Meanwhile, the sources from the Airtel claimed that they have suffered a loss of approximately Rs 550 crore in the current period.
However, the Chairman of Airtel, Sunil Bharti Mittal, blamed Reliance Jio for the existing challenges faced by the telecommunication industry.
Billionaire Mukesh Ambani currently hit again at Bharti’s Sunil Mittal for blaming his telecom venture Jio for the enterprise’s losses, pronouncing corporations ought to discontinue watching at regulators and governments to guarantee their profit earnings.
Jio reported a net loss of Rs. 270.59 crore in the first results in mid-October while in the quarter that ended in September, it showed a revenue of Rs. 6147 crore with earnings before interest and tax in positive. Some business analysts are of the view that Jio will post profit in the quarter ending December 31.
The chairman of Reliance Industries, Mukesh Ambani, responded to this allegation and said, “there’s no need to cry so much” and a businessman should always be ready to face setbacks.
While talking on Friday in New Delhi, Mukesh Ambani said,
“If there are some losses that you take, then we’re all big boys — we shouldn’t be crying. This country has given us a lot more, all of us have started with nothing.”
Jio, the subsidiary of Reliance Industries, was launched in market in September 2016 and it consumed the income and revenue of present telecom gamers of that point, like Airtel, Vodafone and Idea, by using offering free voice and information services for the first six months and now it has started charging for information offerings however voice offerings are given free for life. The other market players had been compelled to minimize their plans in order to compete and preserve their customers.
Ambani further said,
“We all get into business and we take a risk in terms of putting capital. Profit or loss is not guaranteed, that depends on the consumer and depends on the product. That’s a risk that business people take.”
Mukesh Ambani finally chose to speak over this controversy. His reply shut the mouth of his competitors. He said, “For all of us in the Industry, I think profits and losses are the risks that we take. I don’t think we can rely on, governments and regulators to guarantee our profits and losses.”
He further stated that, “To me, what is most important is did we move the country forward and does the consumer gain.” Ambani continued, “The question…you should be thinking about is even if there are profits and losses, who gains and who loses.” He really put his stress on the fact that if the country is moving forward and the consumer is gaining then “it is worth taking those losses.” He added, “Some of us are big boys, we can afford it.”
Putting a stop to the controversy, Ambani concluded by saying that they only want to be the best in the world and if that appears competitive he is very sorry about that.
During an interview, Sunil Mittal blamed the free offers provided by Jio as the main reason because of which the telecom companies had to write-off investments worth $50 billion. He also said that Jio was also against the relief package for the sector which is already burdened with debt.
Mukesh Ambani said,
“The regulator’s job is not to guarantee us a profit, however much we cry. The regulator’s job is to first make sure that the country goes forward and then make sure that the consumer goes forward.”
Mukesh Ambani further added:
“If I have to invest and I cannot take the country forward, then it doesn’t work. Second, consumer. And, after creating the consumer piece, yes, I have to give return to my shareholders, and you will see all my quarterly results coming, and I’m pretty confident that we will give sensible returns to our shareholders. Our share price already reflects that.”
Mr. Mukesh Ambani was asked how he keeps himself motivated in such cut-throat competitive situations.
“Our DNA is that we are very focused. We always believe in the principle of saying that if you focus on the goal, you will overcome all obstacles. If you focus on the obstacles, you will never achieve your goal,” he said.
“At Reliance, we want to be the best in the world,” he stated. “I am sorry if it appears competitive,” Mukesh Ambani added.
Mukesh Ambani also stated that India has become the number one mobile broadband market in the world after Jio’s entry in the market, leaving behind the number of data users of China and USA.
Mukesh Ambani concluded,
“If data is destiny, new India is well and truly ready for its new tryst with destiny.”
As per Ambani, Jio is ahead of schedule on turning profitable and the digital technology will also be helpful for various sectors such as manufacturing, agriculture, education, healthcare, commerce and financial services.