Since Reliance Jio came into the telecom market, it has brought enough heat in the sector for other major players. finding too hard to compete with the enormous and rapid plans of the Jio, other telecoms are bound to restructure their mission and company policy. Launches of innovative schemes have become normal now.
People have become the biggest beneficiary in the town where they get the first-hand benefit of the services. Jio not only brought new challenges in the market but force companies to consolidate the telecom business. Anil Ambani led Rcom was already in the serious debt and recently, it launched a debt reduction plan where Anil is selling his telecom business Rcom, and Jio is believed to be leading purchaser.
Jio and Reliance
Anil Ambani opens up about the business of telecom saying every minute, every day it needs money, you can survive this business only when your deep pockets. He even gave the example of Tata company saying that even they had to sell off their business.
You should have a pipeline to the RBI printing then only you can thrive in this business. Without naming Jio, he said recent trends have created greater challenges for the existing players.
The recent merger between Vodafone and Idea is an example of the difficult conditions in the telecom market. Airtel has seen its debts rise and profits fall due to the introduction of many new challenges by the Jio. This telecom environment took a different turn when Airtel complained about Jio to the TRAI about its various plans and schemes.
THE FUTURE OF THE TELECOM MARKET
“It is a market of a 2 -3 players, where they can enjoy,” said Anil Ambani, who got the Rcom business after separation of Reliance on him and his brother. The telecom market is seeing a massive restructuring and development after the introduction of the Reliance Jio.
The TRAI has found itself between the telecom tussle of the major corporations, namely Airtel and Reliance Jio. In many countries, There are only two to three telecom service providers but India was one such country having more than five telecom service providers including the government operated and controlled BSNL. the Rcom has also tried to distance itself from the telecom war as it is not able to contain the demand of the market and consumers. High competition and low growth of the various other arms of the Rcom business contributed to a large amount of loss occurred by the company.
Reeling under pressure from the banks and consortium of the creditors, it was the first step in the debt reduction plan of the Reliance. Recently, Airtel also sold a significant part of stake in its Telecom tower arm to reduce its debt. The telecom services providers are bleeding as the debts continue to increase.
India with its vast consumer base offers companies vast opportunities, and telecom revolution had brought its own set of challenges for the companies. The War has just begun, and those who survive till last breath will emerge winner of the telecom sector.