Reliance Jio Infocomm is creating a lot of data capacity that for sure will be dumped in the market at low prices. Ambani's strategy will be based on taking the mobile data traffic market share, as churning the primary SIM from the incumbents will be a challenge.
Incumbents have superior voice network coverage, distribution reach, and significant experience in managing voice tariffs.
Reliance Jio will find it difficult to match incumbents' value proposition for voice, but can provide superior proposition for data, considering significant capacities on its 4G network. This will entail customers having to adjust to multiple SIM cards ? one for voice and one for data.
Data market has seen significant decoupling of devices as 80% of consumption of data happens at fixed locations through various devices like dongles, tablets, laptops, and handsets. With its LTE proposition, Jio will seed 4G handsets with dual SIMs where consumers will be able to retain their primary SIM cards for voice but use the secondary SIM for data services.
The strategy is clearly to seed the market with 4G handsets with provision for primary 2G SIM and secondary data SIM card. Apart from 4G handsets, Jio will also launch personalized WiFi products such as MyFi, dongles, and tablets for personal use.
