RCOM and JIO competition or co-operation?

RCOM and JIO competition or co-operation? ******************************************************************* Reliance Communications, headquartered in Navi Mumbai, is a part of Anil Dhirubhai Ambani Group (ADAG). The company provides GSM telephony services and integrated (wireless and wireline), convergent (voice, data and video) digital network that covers more than 21,000 cities and towns and over 400,000 villages. The entry of Jio, with free data and voice offers, has triggered a price war in the country’s telecommunications sector. Telecom operators are facing pressure on income, profitability and other financial metrics on account of competition intensified by the entry of Reliance Jio. RCOM shares facility of JIO:- Strategic co-operation **************************************************************** In medium to long-term RCOM have this unique advantages of going for their (Reliance Jio's) one lakh towers, one lakh fibre, ICR arrangements in all circles. If there is an option in the future for the sale of spectrum auction for 5G, RCOM has options to use their future spectrum without incurring any additional capex. “If JIO’s free offers went on for five years, then it’s a different thing because nothing can compete with free. Only free can compete with free.” RCOM and JIO telecom ventures would continue to be separate entities. RCOM and JIO will have strategic co-operation in terms of spectrum, fiber, intra-circle roaming, towers and any other areas, which can bring synergies, cost savings and that is a strategic roadmap, which will continue.” RCom, along with other telecom operators, is reeling under pressure after Jio’s continuous discounts and free data offers. The latest rental plan from RCom can be seen as a way to counter other dominant players like Airtel, Vodafone, and Jio. The teaser confirms that the Rs. 299 plan for RCom users will offer unlimited calls, texts, and data. However, the exact details of the new rental plan are not available as of now. RCom subscribers can head to Eshop.com to avail the new offer. Anil Ambani-led Reliance Communications reported tumbled share and bonds in May this year, and indirectly blamed Mukesh Ambani-led firm Reliance Jio for offering "freebies". RCom, earlier this year, received 99.99 percent shareholders' approval for merger of its wireless business with Aircel. POSTPAID paln of RCOM:- ************************************************************************** RCom Offers 28 Percent Discount on Select Postpaid Plans for One Year The discounted monthly plans are priced at Rs. 333 and Rs. 499 These discounts are valid for one year The total discount for the subscriber comes up to Rs. 2,400 for one year In a bid to take on Reliance Jio and everyone else that has been introducing new plans and offers, Reliance Communications (RCom) has announced 28 percent of discount on select postpaid plans. These new RCom plans only seem to be available to 4G users in Delhi, Mumbai, Karnataka, Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh, and Madhya Pradesh. These new offers enable a consumer to get 1GB of 4G data for as low as Rs. 11.1. These discounted RCom plans are applicable to only those who subscribe to them online through the company’s portal rcom-eshop.com. The discount is offered on select monthly plans, and after the discount, these plans are now valued at Rs. 333, and Rs. 499 respectively. The discounted rate will be offered for 12 months to the subscriber, making the discount worth Rs. 2,400 for the year. The Rs. 499 plan RCom plan takes on the Reliance DS Rs. 509 plan, and offers 30GB of 4G/3G/2G data, unlimited voice calls to any network in the home circle, free 3000 SMSes, and free incoming and outgoing roaming calls. After exceeding the free SMS cap limit, the charges will be at 25paise/SMS. In comparison, the Reliance Jio plan offers 56GB data, 100 SMSs per day, Jio apps subscription, and free local and STD calls to all networks. Reliance Communications' Rs. 333 plan competes with the Reliance Jio Rs. 309 pack, and comes with 30GB of 4G data, 100 free SMSes, free incoming calls on roaming, and 1000 minutes of outgoing local and STD calls free. Outgoing roaming calls will be charged at 50 paise/ minute. This is an effort by Reliance Communication to attract new subscribers to its network, and to survive the tough competition it faces from not only the upstart Reliance Jio, but also from other incumbents, such as Airtel and Vodafone now offering new competitive plans regularly.