Two years of Jio: How free calls, data catalysed India's digital revolution

When Mukesh Ambani launched Reliance Jio in 2016, the telecom industry was a multiplayer market, consumers were careful about their data usage and very few cared to consume video content on their mobile data network.

Cut to 2018, two years after Jio first introduced free voice calling and months of dirt-cheap data services, content is in demand like never before.

Content provider and OTT services like Amazon Prime, Netflix, Eros Now, Voot, Hotstar, Gaana and Saavn among many others have taken off in a big way.

Global internet giants Facebook, Google and Amazon are prioritizing Indian language services to attract internet consumers in far-flung rural areas who prefer content in local language than English.

“Jio has built a Digital Connectivity Platform of unparalleled capacity and a nation-wide reach. This has enabled Reliance to strategically reinvent itself as a Technology Platform Company,” the company said in a statement on completion of two years.

Jio witnesses highest user engagement of up to 30% among all telcos

Reliance Jio apps witnessed the highest subscriber utilisation (number of subscribers using the app) of up to 30 per cent among telecom service providers, says a recent study. For other telcos, the utilisation level was 10-20 per cent.

While part of the high engagement is due to Jio’s presence across smartphones and app-enabled feature phones, analysts said this did not mean that Jio would be able convert that into higher average revenue per user (Arpu).

In a recent report, UBS Evidence Lab said: "While Jio is slightly ahead of incumbents on app engagement, overall engagement levels are low and will limit (all) telcos' ability to charge for these apps separately. Global examples of telcos being able to charge separately for content are limited." The report noted that customer engagement on apps of telecom operators is below 25 per cent.