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by KumarAseem 2556 days ago
They had the advantage that they did not have any legacy systems to take care off. All the other operators have to take care of 2G and 3G network supporting infra along with putting in investment for 4G. So, Jio had a lot of money to use to grab the customers by offering free deals. They applied the approach of cannibalistic business growth. Also, there network is not good anymore now, as the subscriber base has grown. I have seen cross connects happening which used to happen in the days of landlines. Cross-connect, not sure if all know it by the same name, is when you call a number and you get connected to some other number. I have never faced this with other providers like Airtel, Idea and Vodafone in 13+ years of mobile phone usage. Jio is now in the same league as others, and is actually bad at the customer front level when compared to Airtel and Vodafone+Idea. This is from my own experience and of those in the close circle.
1 comments

> Jio had a lot of money to use to grab the customers by offering free deals

How do you make money offering free deals?

Jio is part of reliance, a conglomerate in the “more money than god” category.

They also are known for their ways with price competition. Even worse if you are an OEM, delayed payments are the norm.

offer free deals build a large customer base very quickly take a large chunk off competitors' customers offer much cheaper plans than competition kill some competitors, make others struggle to survive. gradually increase tariff. start making profits.

all you need is a large chunk of money, or absurdly low-cost loans, or some govt "assistance", or a mix of these, to last until that "start making profits" line.

I believe they are trying to make money out of other services by commoditizing internet. It seems unlikely that this aggressive pricing is to elbow out of the competitors because in this age, the tech companies normally have short-lived monopoly and long bets don't make much sense.