Reliance Jio Plans to Expand its Customer Base through Preview Offers

Reliance Industries (RIL) is making its foray into the broadband and telecom sector through its digital arm Reliance Jio. Therefore, in order to expand its user base and encourage individuals to switch to Jio, the world’s largest start-up is partnering with leading smart phone manufacturers.

Subscriber base

Due to the referral invite system and tie-ups with phone manufacturers, Jio has already acquired a consumer base of 1.5 million individuals much before its commercial launch. This comprises LYF buyers, retailers, employees, and business partners.

Predictions are being made by leading industry analysts regarding the launch date and Jio’s expansion. Morgan Stanley reports stated that the company will garner an estimated 30 million subscribers by the end of the current financial year. This will enable Jio to earn over $ 1 billion through revenue.

Jio’s long-term plan

Jio’s strategy is focused on providing non-LYF smart phone users the opportunity to avail of Jio’s services. This would help in attracting consumers to test the network. The tie-ups with several smart phone brands offer the buyers limited access to data services through Jio SIM cards. These allow the individuals to make use of free unlimited data and calling plans for 90 days. Satisfied customers would then be offered the mobile number portability (MNP) option on expiry of the trial period.

The company is also emphasizing on its Jio Join application which would allow non LTE-enabled smart phones to also make VoLTE calls using Jio SIM cards. The app is available on Google Play Store and enables HD voice calling, media-rich messaging, and seamless file sharing.

Smart phone associations

Mukesh Ambani led Reliance Jio recently collaborated with Samsung and many other partnerships are expected in the near future. The upcoming telecom provider intends to associate with all leading manufacturers of smart phone devices in order to thoroughly penetrate the market. A partnership with Apple iPhones is said to be next on the cards.

The company is conducting tests on the smart devices to ensure their compatibility with Jio services. The phones that qualify are expected to help Jio reach out to more demographics, thereby, also increasing the sales of the affiliated devices.

Jio and Samsung

On purchase of select Samsung devices, customers will now be able to avail of Jio SIMs. This would enable them to access unlimited free data and voice calling in addition to using premium Jio applications. The offer also helped Samsung boost its sales by 15-20% according to an industry source.

Fundraising for Jio

The parent company of Jio, Reliance Industries Limited (RIL) released rights issue to its shareholders which helped the company raise Rs. 15,000 crore. The amount will be used to enhance Jio’s network services and will help it cover 90% of the Indian population within two years of its commercial launch.

Additionally, out of the Rs. 1.5 lakh crore investment made by RIL, Rs. 1.34 lakh crore is being used to increase the spectrum coverage and enhance the network.

Summary

Reliance Jio is devising a strategy to expand its current consumer base of 1.5 million users through tie-ups with phone manufacturers.

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