Reliance Jio has launched its integrated instant messaging application today, both on iOS and Android. The application has the following features 1) Free texting facility to Jio Chat users; App can also be used to SMS non-Jio (termination charge of Rs0.02 per SMS) 2) Video Calling 3) Voice conferencing 4) Jio Drive to store pictures/videos. We believe that this is unlikely to move the dial for the company given 1) Presence of a multitude of similar cross-platform OTT apps available such as Whatsapp, Viber, Hike, Wechat 2) Limited success of VoIP globally.
Though Jio chat is a one stop shop OTT, we do not see any differentiating feature on the app which could not be replicated by existing OTT players over time. In our view OTT like WhatsApp who enjoy the first mover advantage (and hence a network effect) could not be displaced by a new app. Jio chat could be add on OTT (i.e. apart from having WhatsApp, consumers may have Jio chat). We remain unsure how Jio could offer differentiating services to make this a sticky app.
