he Reliance brand that rules Indian petro chemical industry among others is now all set to tighten its grip over India’s communication networks. The company led by Mukesh Ambani has invested a massive sum of Rs 70, 000 crore in spectrum, wireless network, customized towers, etc. Reliance Jio Infocomm is all set to launch 4G services across the country.
The Reliance already possesses spectrum in all categories like 2300 MHz, 1800 MHz, and 800MHz. This allows Reliance to operate telecom services in all the 22 telecom zones. According to the company’s latest annual report, it will provide services in 800 towns and cities across the nation.
In 2003, with the slogan of Karlo Duniya Muthi Mein, the Reliance shoot up to the top position by providing basic services at the cheapest rate. This helped the company to grab the market space by driving out the competitors. The Reliance expects to repeat the slogan with its 4G offer. It slipped after the company’s split between two brothers with the younger one retaining telecom segment of the family empire.
Now, the Mukesh Ambani-led Reliance is aspiring to regain the market space. The Reliance is planning to converge a host of services like 4G , Internet , DTH television services at prices that would make its market rival to go for a run, says Gurbir Singh in his editor’s note , in June 15 edition of Business World.
Quoting the company’s authorities, senior journalist K Yatish Rajawat writes in the same issue that the Reliance Jio is expected to launch the 4G in this July itself. With the 3 G services disappointing the customers, the market analysts hope that the 4 G would catch the imagination of young and enterprising Indian awaiting high speed and reliable internet.
Mukesh Ambani’s power of investment to emerge as market leader is quite evident. According to US based investment research firm, Alliance Bernstein, Reliance Jio has invested $13 billion in five years when compared to an investment of $15.78 billion by Bharti Airtel in a span of 23 years and a life time investment of $11.4 billion by Reliance Communications of Anil Ambani.
The Reliance group is not just known for bold investment, path breaking market entry. It captures the market by manipulating it through disruptive pricing (cheaper pricing aimed at driving away competitors using its deep pockets) and using the policy loopholes. The company is hoping to repeat Karlo Duniya Muthi Mein yet again over a decade after.
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