Reliance Jio needs to be stopped, NOW!

With only 3 private operators left in the industry, the Indian Telecom sector looks to bend in a monopolistic direction in favour of Reliance Jio

Look back to 2010. The local shops had banners and posters of Tata Docomo, Loop, MTS, Videocon and Aircel. Customers had tons of telecom operators to choose from. Honestly, there was real and fair competition in the Indian Telecom sector. 

Read: The history and rise of Reliance Jio

Fast forward to 2020. Among the top telecom operators in India, only 3 private telecom operators are in the market. Recovering from the heavy storms of financial debts, Vodafone Idea and Airtel survived the storm only to meet their new competitor; Reliance Jio. With the public sector operator BSNL, private operators Vodafone Idea, Airtel and Reliance Jio are the existing telecom operators in India. But with Vodafone Idea and Airtel in losses of more than Rs. 20,000 each, the focus of the telecom operator industry has started to incline towards Ambani's Jio. 

Jio's history dates back to 2011 when it was in its trial stages. Post the BJP-ruled Indian Government's decision of Demonetisation, Jio has sparked its reach and user count in the market. Rolling out free cellular services, Jio with aiding from the government got hold of a substantial chunk of customers of the Indian Telecom sector. 

With over 33% of the total market on its side, Jio is the biggest telecom operator in India

On the other side, Vodafone merged with Idea and is now on the brink of bankruptcy.  In the first last week of June, Vodafone reported a staggering Rs. 73,878 crores of net loss in fiscal ended March 2020 which is the highest ever by any Indian firm. The loss is because of the pending payments to the government and a loss of almost 20 million subscribers in less than 4 months. 

Airtel recorded a loss of over Rs. 15,000 crores. With unpaid dues to the government and the rising competition mainly with Jio, Airtel is slowly coping up but at a snail's speed. Signs of a hike in the various tariffs by the telecom operator are clearly visible. Bharti Airtel CEO Gopal Vittal stated that the company may think of rising tariffs in its old plans. 

As both the stalwart telecom operators in India are in the web of losses, Reliance Jio has emerged with over 10 foreign deals in a quick succession of time. Selling over 25% of its share, the biggest telecom operator of India got hold of around Rs 1,18,000 crores. Alongside, Reliance Jio issued their rights worth over Rs. 53,000 crores to become India's first debt-free telecom operator. These deals are going to provide Jio with a new platform that will result in the creation of jobs, advancements and much more.

Since demonetisation, Jio has introduced data plans which are the cheapest in the history of the Indian telecom sector. Jio's never-ending rise poses a risk for the present and the future. The rising of one of the competitors and the fall of the others showcase the early shadows of a monopoly. With the foreign deals and assistance from the government at power, Jio will be able to take over the telecom sector in the next decade or so. As more funds come in, it will assist the company to expand its wings in other verticals. As monopoly kicks in, the control over the company's power in the market would be next to impossible. 

Read: A book Banned for tarnishing the Ambani family's image

Mukesh Ambani's media power

Network 18, owned by Mukesh Ambani's Reliance Industries Limited is one of the biggest news media organisation in India. India's richest man has control over media in regional news arena too which helps in developing the light of Jio. 

With news channels in Bhojpuri, Gujarati, Assamese, Tamil, Bengali, Rajasthani and other vernacular languages, RIL and Jio has an upper hand over other telecom operators PR aspect. 

The monopoly of Reliance Jio in the Indian Telecom Sector is not far

Can the Monopoly be controlled?

This is the question of the hour. Monopoly leads to the formation of a stagnant business plan; in which only the leading business house prospers. This leads to the involvement of the company in politics which in destroys the foundational element of a nation. 

As Vodafone is on the verge of bankruptcy and Airtel rolling in losses, Jio's rising influence can create a total monopolistic telecom sector in India. Jio in its initial stage (post demonetisation) gave free services. After building a substantial market space, it rolled out its money-formula and starting cellular plans from Rs. 84 to Rs. 1300. This indicates the long-run plan of Jio as it has based its business model on free-money-more money sachet. 

Urgent: Government helps Jio to conquer the telecom sector 

In the case of Jio, Mukesh Ambani has honey-coated ties with the top leaders of the ruling-BJP. Reports in the news media have already stated the foundation of Jio's political impact has begun. As things have started to deteriorate in the Indian Telecom sector, monopoly is not far. 

With control over the mass' daily dose of news and information and eyes on the cellular industry's absolute dominance, Jio has to be stopped now. 

More: How Jio become India's biggest telecom company?
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