Mukesh Ambani’s Fondness for the Telecommunication Sector
When Reliance Communications Ltd. first came into existence in early 2000s Mukesh Ambani played a pivotal role in laying the foundations of the company. However, after a property ownership brawl between the two Ambani brothers, Anil Ambani inherited the telecommunication business with a non-compete clause refraining Mukesh Ambani from entering the sector for almost nine years. With the collapse of the non-compete agreement in 2010, Mukesh Ambani reacted aptly and bought nearly 96% share in Infotel Broadband that had won rights to distribute 4G spectrum services across all the regions in India. Infotel Broadband was later renamed as Jio that started laying of fiber optic network around the country. Jio’s long term success will mean that Mukesh Ambani will further extend his control over the telecommunication sector in India.
Jio Miraculously Pulling the Data Subsidy
Services that will Run Rampant
Apart from the low-cost data, the company has also launched special segments such as Digital fund and ‘Jio for young entrepreneurs’. The introduction of such segments indicates that Jio not only aims to cater to low-earning groups but is also willing to persuade high income groups of customers. Moreover, Reliance Jio is gearing up to launch low-end 4G LTE smartphones and broadband service ‘Jio-Fi’ at a competitive price, which in one way or another, will pose a threat to Prominent smartphone manufacturers and leading ISPs in the country.