WHEN THE WORLD'S 6TH RICHEST MAN ENTERED THE INDIAN TELECOM MARKET, HE COMPLETELY DISRUPTED THE SECTOR & INITIATED THE DAWN OF INDIA'S DIGITAL AGE. HERE'S HOW.
Mukesh Ambani is a famous man in India. Touted as a business mastermind, he is the modus operandi of Indian conglomerate Reliance. An oil to tech company, Reliance is a behemoth in the Indian market. According to Moneycontrol, it's future prospects look exceedingly bright.
This sudden vote of confidence can be accounted for recent moves executed by the Reliance top brass. They have partnered with tech giants like Google & Facebook, have received heavy investment by major VC's like Silver Lake, ventured aggressively into the lucrative retail market, entered the Indian smartphone sector in collaboration with Google, established a profitable energy empire for decades & successfully disrupted the Indian telecom market. Today the focus shall be on the impact Jio (Reliance's telecom arm) had on India's digital aspirations.
THE REVOLUTION IS NOW
When Jio entered the market, it completely changed the standard price of the industry. The cost of phone calls, per GB price, messaging as well as internet surfing plummeted. The effect is illustrated well by TOI below.
Due to the fall in prices, the Internet which was previously the monopoly of the affluent became a mass product. The number of people having access to the Internet skyrocketed due to the cheap rates.
THE BUSINESS IMPACT
The Jio effect i.e. fall in internet rates & more accessibility lead to the emergence of business opportunities for various internet-based businesses:
Streaming services like Netflix rightly identified the opportunity & launched one device one account affordable plan for the Indian market.
Online e-commerce blossomed as companies like Amazon & Flipkart (regional giant) gained access to the previously cut off rural areas where internet subscribers increased exponentially.
Chinese smartphone brands like Vivo, Oppo & Xiaomi introduced low-cost smartphones to cater to the new users.
OTT services streaming live sports also became gained traction as they were cheaper & mobile in comparison to TV broadcasting.
Ridesharing companies like Uber, EdTech startups like Byju's & and food delivery apps Swiggy & Zomato also experienced growth as online facilitation became the new normal.
THE NEW DIGITAL AGE
India is rapidly catching up with the world in terms of incorporating internet-based business solutions to their operations. Conglomerates & MNCs based in India are embracing data analytics, AI & machine learning after observing the rich dividends of technological upgradation from their foreign peers. Even in broadband, Jio is slowly improving its market share.
The increased usage of the internet, as well as demonetization in 2016, have accelerated the growth of mobile POS (Payment Operating System.) In fact, India has its own globally acclaimed User Payment Interface which has facilitated the rise of digital payments.
FINAL THOUGHTS
As we draw closer to the Industrial Revolution 4.0 where technologies like AI, IoT, machine learning, 3D printing, cloud computing, robotics, digital twins & 5G will play a pivotal role, it is imperative that economies have basic internet infrastructure. Already economies like China, Germany & South Korea are thinking ahead of the curve and formulating tech-centric plans. In such an environment, developing nations will have to catch up and catch up fast. India is already en course.
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