May 17th was the World Telecommunication Day and as a significant day we decided to take a look at a significant achievement by Indian telecom company, Reliance Jio. The company has brought a revelation to the telecommunication industry of India.
Although Airtel overtakes Jio in the number of users (an estimated 30 million), Jio, in just 20 months, has managed to gain 17 million users! This was through the provision of cheap 4G superfast data. The free voice calling was also a boost.
Money From Data Rather Than Calling
From an Interview, we see how affordable services are made possible and why other companies shy away from it. The interview was conducted with the official Airtel spokesperson and some IT experts. In the interview, they stated that, “Jio came to the telecom industry with a new business model.” In addition, they added, “Other companies were making money from voice calling, but Jio adopted a model to make money from data rather than calling.”
They delved further into Jio’s investment in VoLTE. “With the data in VoLTE technology, the quality of voice calling is very good. Other companies are working on LTE, if they want to shift to VoLTE, then a big investment will be required. However, Airtel has started working on shifting its network over VoLTE.” They said.
They stated that Jio started off with VoLTE technology. Unlike Airtel, they do not upgrade their services but invest in new ones. It has strong financial backing from its parent company Reliance Industries. The Reliance industries work with new computer methods whereas the other companies are still stuck with age-old methods.
Jio’s Correct Investments
They also stated that LTA tech is also called 3.5G! The new technology goes through the voice packet in VoLTE. This means there is no blockage in it. When asked how users get an advantage by switching over to VoLTE, they responded, “Other companies use circuit switched network technology. If someone uses a call while using 4G data, the data will stop for a few seconds, because the network switches on 2G mode.” However, Jio did not invest in 2G or 3G technology. They invested in VoLTE that stands for Voice Over LTE. By this, when a user talks on phone, the network does not switch from 4G to 2G. This is a huge advantage to the company as well, as voice calls go from the data package itself.
Users, by taking damage, are benefiting from it themselves. Small companies, unable to take the market, argue that the affordability comes at a damaging price. Aircel soon went bankrupt. What do you think about their business plans and modules? Are you a fan of it? Let us know in the comments below. They are also have a 4G featured Jio phone which is completely free. Read about it, here.