Giving away three months of unlimited data to win customers. Samsung bundles Jio's offer and saw a jump in sales. ETTEL expects Apple and almost all others to do the same. Shruti Dhapola tested a LYF phone and found, "download speeds came in the range of 6Mbps to 10Mbps, which is way above what you get from other players now." (Indian speeds are low because the telcos, including Reliance, don't have enough spectrum. The auction will change that.)
Over 1.5M have already signed on, using a remarkable 26 gigabytes/month each. The official launch date may be August, taking advantage of Jio's support of the Indian Olympic team. The first announcement featured some of Bollywood's biggest stars.
Jio is confident they can handle 100M subscribers drawing 5 gig. They intend to get them. Most prices will be under $10,
putting to shame the Europeans and especially the Americans. They have a line of smartphones costing from $45 to $300, taking advantage of the latest cost-reduced or more powerful components. The worldwide slump in phone sales this year has brought component prices to new lows. Everyone from Qualcomm to Sony to memory makers geared up for continued sales growth. Jio is buying chips from three different suppliers to get great prices.
This is already one of the world's largest networks, covering a population of over 800M. They have built 250,000 kilometers of fiber so have essentially unlimited backhaul capacity. They are part owners of the 55 terabit Bay of Bengal Gateway undersea fiber. BBG connects Mumbai and Chennai to both Singapore and the Persian Gulf, meeting numerous routes around the world. Wavelengths are 100 gigabits.
They are planning to increase capacity 4-10 times in the next four years, depending on demand. Ambani has consulted some extremely respected wireless engineers and knows MIMO and MU MIMO are ready, raising capacity 2-4X. Wireless technology is advancing incredibly fast. In western markets, the telcos are cutting capex despite continuing traffic growth.
India is about to begin one of the largest spectrum auctions in history, 2300 MHz. Compare that to the 40 MHz that carries > 90% of Verizon's traffic today. Ambani can easily triple his spectrum holdings and efficiently put that to work, Indian telcos have neither the cash or the borrowing power to buy even half of the $86B of spectrum offered. Ambani can buy as much as he needs for almost any level of customers. The auction story is worth a click.
The 20M fiber homes they intend to serve will have gateways with a second SSID for sharing. Turning on Wi-Fi can reduce LTE demand by as much as half where it's most needed - dense urban areas. With near infinite backhaul capacity, the fiber build will very profitable if Jio can keep construction costs down.
20M fiber customers are more than twice the size of the largest fiber service in the Western world, Verizon FiOS.
Here's the pr with interesting details.
Reliance Jio Launches Mi-Fi Devices at Rs. 1,999
Reliance Jio's portable Wi-Fi hotspot devices called JioFi to be launched at a discounted price of Rs. 1,999. The company's pricing strategy is aimed at increasing its subscriber base with high-speed data and affordable handsets. The LYF EARTH 2 sold at Rs. 19,999 is the latest addition to the LYF smart phone range.
Mumbai, Maharashtra, June 30, 2016 /India PRwire/ -- Mukesh Ambani led Reliance Jio is set to launch two Wi-Fi hotspot devices priced at Rs. 1,999, although their maximum retail price stands at Rs. 4,899 each. Currently only available to Jio employees, the devices are being tested for efficiency.
The portable mobile Wi-Fi hotspot devices, called JioFi, may be conveniently carried because of their light weight properties. Available in black variants currently, they have an in-built battery which lasts for around five hours. While one device allows up to 10 connections, the other one lets 5 devices connect to it. Both devices also contain a single USB connection feature.
In addition to the portable Wi-Fi connection, the devices also facilitate HD voice calls and video calls. The Voice over Wi-Fi (VoWiFi) technology enables users to make calls virtually with the help of the JioJoin application.
The commercial launch of the JioFi devices will see Reliance Jio officially release prepaid as well as postpaid plans. Users may choose between only data or a combination of data and voice calling plans. Jio applications like Jio Play, Jio Beats, and Jio Express News are also included in these plans, at no extra cost for three months.
The prepaid data plan offers individuals 4G data amounting to 75GB which is also valid for three months. The HD voice combination pack offers users with 4500 minutes of voice calling and 9000 SMSs for the same period.
Jio's pricing strategy
Jio aims at increasing its subscriber base to over 100 million users in one year. Its pricing strategy is devised to attract customers who are most likely to opt for low to mid-range phones, since they constitute the largest chunk of the smart phone market.
Reliance Jio's decision of offering an all-encompassing digital ecosystem to the public at economical rates may greatly benefit them.
Reliance Industries Limited (RIL) has invested over $ 22 billion in Jio. This capital has helped Jio gain access to the largest 4G spectrum, cutting-edge technology, and the widest optical fiber network system in India.
Jio has three operational data centers in Navi Mumbai, Noida, and Nagpur measuring 500,000 sq. ft. Prior to the commercial launch, the largest start-up in the world aims at increasing its data-handling capacity by expanding the data centers. The centers would serve the function of acting as servers for Jio applications.
LYF EARTH 2
The newest addition to LYF's collection of smart phones, the EARTH 2, debuted at Rs. 19,999. Being a premium device, it boasts of a 13 MP front camera that enables users to auto-focus as well as use the flash option. Another striking feature includes the Iris retina scanner that allows users to unlock the phone with their eyes.
Reliance Jio's stronghold in the Indian smart phone market continues to increase with every quarter. Its commercial launch is highly anticipated, and analysts continue to make predictions regarding the possible date for the same.