Days after Mukesh Ambani announced his long-awaited Reliance Jio 4G network with an audacious free service for the rest of 2016, followed by vastly cheaper data plans and free voice calls for life, everyone is asking the same question ‘How will Reliance make money by giving voice for free’?
And, the answer to this is very simple!
There will be multiple streams of revenue. Since Jio is a convergence of a telephone company and internet service provider (ISP), it is going to make money through advertising and subscriber service.
Mukesh Ambani on September 1 announced that domestic phone calls from the Jio network will be free forever, and unveiled a four-month introductory offer for everyone of a zero-tariff voice and data services, beginning on September 5.
Reacting to the Jio plan, Bharti Airtel said: “We welcome Reliance Jio’s entry to the digital world and wish them the very best. We also welcome Jio’s call to leading operators to work together. As a responsible operator we will fulfill all our regulatory obligations as we have always done.”