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After Jio, Mukesh Ambani is Set to Take on Internet, Video Streaming Giants

"Every phone in India will be a 4G-enabled phone and every customer will have access to 4G connectivity," he added

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Ambani. Source-conclave.intoday.in

Reliance Industries Chairman and Managing Director Mukesh Ambani who has disrupted the mobile telephony market with Reliance Jio, is set to take on Internet and video streaming giants like Google, Netflix, Amazon Prime and Spotify.

According to an article in the winter 2019 issue of Foreign Policy magazine, “the second stage of Ambani’s plan is more ambitious” after creating a mega base of 28 crore Jio subscribers with ultra-cheap data plans and sending rival telecom operators into a tizzy.

“Jio’s real competitors aren’t local cellular providers, such as Airtel or Vodafone India; instead, insiders say Ambani has long had his eyes set on competing with Google, Netflix, Spotify, and Facebook,” read the article.

Jio services now include attractive lifestyle products — a streaming TV service with hundreds of channels, a digital payments system, a music library, a health care app, a connected home system, a messaging platform.

“Each of these could reach Jio’s growing customer base in a multitude of Indian languages,” the article added.

Reliance Jio Infocomm last week reported a 65 per cent increase in its standalone net profit for the October-December 2018 period.

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Jio services now include attractive lifestyle products as well. (Wikimedia Commons)

Its standalone net profit stood at Rs 831 crore in the third quarter of the financial year 2018-19, against Rs 504 crore reported in October-December 2017-18.

“The journey of Jio has been truly remarkable and has surpassed all expectations.

“The Jio family is now 280 million strong and growing on one of the world’s largest mobile data networks, in line with our vision of connecting everyone and everything, everywhere — always at the highest quality and the most affordable price,” said Ambani.

For Jio, average data consumption per user per month was 10.8GB and average voice consumption was recorded at 794 minutes per user per month.

Video consumption drove most of the usage, increasing to 460 crore hours per month and this is the next growth area Ambani has firmly set his eyes on.

According to a latest survey by global digital content delivery platform Limelight Networks, Indian viewers are now watching online video content for an average of eight hours 28 minutes each week, more than the time they spend viewing TV every week.

Mukesh Ambani.

The amount of time Indian viewers spend watching online videos is far higher than the global average of six hours and 45 minutes each week in 2018 which itself marks a 58 per cent rise from the 2016 figure.

Through online channels, Indian viewers largely watch movies, followed by news, TV shows and sports.

Asserting that the data is the “new oil and wealth” in the new world, Mukesh Ambani in his speech at the India Mobile Congress last October said that Reliance Jio’s broadband offering can place the country among the top three nations in fixed broadband from a low rank of 135 currently.

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Mukesh Ambani said that India can be transformed when people get “Pehla TV, pehla camera, pehla Internet and pehla Artificial Intelligence (AI) — at just Rs 100 per month”.

“Every phone in India will be a 4G-enabled phone and every customer will have access to 4G connectivity,” he added. (IANS)

Next Story

Is Internet Usage In India Calculated In A right Manner?

According to industry experts, the research methodology to derive the average number of Internet users would entail a large-format survey.

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According to Mohanty, Internet usage is calculated based on the number of people using Internet. Pixabay

If we look at government or independent research figures, Internet users in India are growing exponentially — currently hovering around 560 million and likely to cross 600 million by the end of the year.

According to the Telecom Regulatory Authority of India (TRAI), India has amn Internet subscriber base of nearly 560 million, including 482 million broadband subscribers – which means 43 per cent overall Internet penetration.

The country has 366 million Internet subscribers in urban locations and 194 million in rural areas, says the latest TRAI report that came out in December.

The “ICUBETM 2018” report from market research firm Kantar IMRB said this week that the number of Internet users in the country will reach 627 million by the end of this year.

The numbers are overwhelming but when it comes to the methodology behind deriving the average number of Internet users, there appears some gap.

For example, if a person in a family has 2 mobile numbers and he or she uses multiple devices for Internet access, how is that accounted for?

According to industry experts, the research methodology to derive the average number of Internet users would entail a large-format survey.

“Such a survey would typically cover 50,000 to 1,00,000 households in India, spread across urban and rural India, and covering all socio-economic classes (SEC) segments,” says Satya Mohanty, Head-User Research Practice, CyberMedia Research (CMR).

According to Mohanty, Internet usage is calculated based on the number of people using Internet.

“Therefore, if in one household, there are three people using one device PC/smartphone, then it is calculated as three users instead of one user,” he told IANS.

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The numbers are overwhelming but when it comes to the methodology behind deriving the average number of Internet users, there appears some gap. Pixabay

The average number of users derived from the sample survey is extrapolated to the total number of households in India to find out total number of users.

“For example, consider that the survey findings point to the average number of Internet users per household being 2.5. And, in India, there is 250 million households. Replicating the average figure of 2.5 with the total number of households, we have 625 million Internet users in India,” Mohanty elaborated.

According to Kantar IMRB, their latest “ICUBETM 2018” report covered over 70,000 individuals, selected through a sampling process across over 400 urban areas and more than 1,500 rural locations.

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“As data costs plummeted, more Indians than ever before are experiencing broadband for the first time on mobile”. Pixabay

“ICUBE members are of users and not subscribers. Thus people carrying multiple phones will be counted as a single user,” Biswapriya Bhattacharjee, Executive Vice President, Kantar IMRB, told IANS.

Similarly, Bhattacharjee added, a person using his or her spouses/parents’ phone for Internet access will also be counted as an Internet user.

One thing, however, is clear: the data usage is growing thanks to Reliance Jio, along with the increasing number of smartphone and entry-level feature phone users.

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“Jio has been a transformative force in enabling digital inclusion, by connecting the unconnected. Since its foray, Jio has achieved a remarkable feat of covering 95 per cent of India’s population with aggressive 4G network roll-out aided by innovative pricing strategy,” Prabhu Ram, Head-Industry Intelligence Group, CMR, told IANS.

“As data costs plummeted, more Indians than ever before are experiencing broadband for the first time on mobile,” Ram added. (IANS)