Will Reliance Jio's aggressive pricing impact incumbent operators' (Bharti Airtel, Vodafone and Idea) profitability and sustainability or would it change the paradigms for the telecom sector. Comment.

Yes,definately reliance jio's entry with disruptive offers of free voice calls and the world's cheapest data plan would impact other operators sustainability and profitability in the market.

Because india has always been a country with poor internet availability and speed,especially in rural areas.Even for those who can afford to purchase expensive 4G plans ,poor connectivity issues prevent them from taking full advantage of the services.Also airtel and Vodafone’s per GB rate could equal Jio’s current rates, but their rates come into effect only after users pay a monthly/upfront fee of Rs 1200+.

Reliance Jio’s LOSS-LEADER STRATEGY is simple and is one being played out in other markets such as online taxi  and e-commerce .i.e to sacrifice short-term profits, have more Indians to come and use services, hike prices slowly and reap the rewards of the larger addressable market.
but at the same time its long term impact can only be decided with its ability to sustain low tarrifs and sevice quality.

According to me imperfect competition is going on between the telecom companies with oligopoly market structure.
And they have adopted penetration pricing strategy as in there initial prices are kept low to reach a wide area of market.

Yes according to me, r-jio's aggressive price are impactin the other operators very much as R-Jio Info comm kicks off its much awaited but delayed 4G services , shaking up the industry with free voice and dirt cheap data, which top rivals Bharti Airtel, Vodafone and Idea are facing huge loss in their own customer and they are being forced to react to, draining their finances.
Mukesh Ambani-owned Jio's management is counting on its introductory offer of free calls and data to grab a 100 million customers rapidly.
It is expecting that the weaker revenue growth for No.1 Bharti Airtel and third ranked Idea to lead to 7 per cent and 10 per cent cuts in earnings before interest, tax, depreciation and amortisation and 10 per cent and 65 per cent cut in earnings per share, respectively.
And i think they will do little changing in there offers like in call rates, sms packs and data packs because they are loosing there customer slowly and no company will want to loose and customer and decrease their profit.

According to me, Reliance Jio's aggressive pricing will impact incumbent operators profitability & sustainability and would also change the paradigms for the telecom sector.

Reliance Jio's much anticipated launch on Thursday i.e. 5th September offering free voice calls and data services at very low tariffs resembles a disrupted strategy adopted by the company.
RJios price aggression is expected to exacerbate pressure on both revenue growth & profitability of existing incumbent operators.As a result the incumbent operators jostled to keep their customer base intact, tariffs plunged, making mobile phones affordable for millions of people. This could hurt voice tariffs and average revenue per user of existing operators as well as push them to match the pricing, in a bid to protect their market share.

Introducing of RJio is a game changer for the Telecom sector because now the competition is geared up and the operators have to increase their investment both in coverage & quality.

I think the telecom sector will come under the Monopolistic competition because there are many number of firms i.e. large number of sellers and product differentiation is high.And they used market penetration as their pricing strategy with the aim to attract large number of customers by lowering their prices.

Reliance Jio's pricing is definitely attacking on competitors price. As we can see that Airtel, Vodafone and Idea have cut tariff and bundled free calls with data. The market share has already goes down after launching of Jio. Incumbents have been trying various strategies to retain top end users
.I will include telecom companies in oligopoly market structure because Oligopoly is a market structure in which a small number of firms has the large majority of market share.
They use market penetration as a pricing strategy, aim to attract buyers by offering lower prices on goods and services. Many new companies use this technique to draw attention away from their competition

Yes, Reliance Jio will have a great impact on the other telecom sectors. As Reliance Jio's commercial
launch nears, incumbent telecom operators Airtel, Vodafone, and Idea have cut tariff and bundled free
calls with data to drive mass market adoption.
We can see that Reliance is trying to be acquired monopoly market for attracting all buyers.
It wouls surely affect the profitability and sustainability of other telecom sector in short run but we
cannot predict any situation in long run. As a marketer point of view its a case of penetration
marketing, in which lower price of new goods are charged.

Yes, i agree that the entry of Reliance Jio in the market with its aggressive pricing is bringing an enormous effect on the operators such as Bharti Airtel, Vodafone and Idea's profitability and sustainability. Because it has launched with its super cheap rate of internet .i.e., providing 4G internet in just rupees 50 per Gb. Also it has many attractive features such as no voice call charges, no roaming charges , no high data charges , no blackout days. The various tariff plans offered by reliance jio is 30-50% lower than other operators, which has created a huge pressure on operators . I would place the operators such as Airtel, Idea ,Vodafone in a monopolistic competition as there are many firms in the market and their product differentiation is very high. Pricing strategy adopted by reliance Jio is penetration pricing in which lower price of the new product is charged which in turn helps in prompt sales and keeping the competitors away from the market.

Yes , according to me the reliance JIO aggresive pricing will imapct the various operators like bharti, idea, vodafone etc. The profitability and sustainability of all the other operator will be affected as JIO is providing a super fast internet with cheap rates at Rs 149 the company is offering 300 MB of data and unlimited local and roaming voice free and access to Jio entertainment apps. The company does not plan to charge for SMS either. with the various plans for customer JIO is increasing its market value at mass which is affecting the other operators.
As per me, reliance is playing a monopoly market structure, as there is no other operator at this cheap rate facilities and it has a unique services.Reliance is using penetration pricing, in which lower price of new goods are charged, as it is providing all tariff as cheaper rate like  No voice call charges both STD & Local,No roaming charges, No high data charges, No blackout days and many more.
It is new in market so just to increase the sale it has kept its price low so that it can get a postion in the market.

Yes, It would impact incumbent operators '(Bharti,Airtel,Vodafone and idea) profitability and sustainability as Reliance Jio shareholders's wealth gained ₹20,000 crore in the past last two weeks as the markets gradually factored in the contribution of telecom venture towards the company 's valuation and the stock recouped its position as the second most valued Indian company by market capitalization. Jio 's 'Welcome offer', which gives free service until December 2016, is adding as high as 5 lakh subscriber per day.If current subscriber ,additions sustain, it will have a good chance to bring sizable subscribers at the end of free service period and may surpass the street expectatin of 2.5 crore subscribers by FY 17- end before time.It will definitely reduce the profitability of other operator's company. On to the question of sustainability, due to low pricing of jio, other operators also reduce their prices

Yes, in my opinion the entry of Reliance Jio has aggressively impact the profitability ans sustainability of other operators like Bharti Airtel, Vodafone and Idea because jio is offering free calling, free data,free roaming and due to this a large number of customers are attracting towards Jio as we all need internet on daily basis Because of thisOther operators ( Bharti Airtel, Vodafone etc.) reduced the rates of data pack and calls to maintain the balance and to retain their customers.
I would place Reliance Jio in monopolistic market structure because there is large number of sellers and the products are differentiated with high elasticity of demand.
The pricing strategy adopted by Reliance Jio is Penetration Pricing, it is a strategy where the price of the product is initially set low to reach to a wide fraction of market as because of low price most of the customers switch to Jio.

well, the profitability and sustainability is quit far for JIO at this point of time compare to airtel,vodafone, idea and all. Aggressive pricing is really the thing that everyone is talking about the JIO. it is open market for every one you never know what gone happened but still the composition and shares will jagged around among them, As the call drop and voice calling problem is roaring towards its data pack JIO still need to do more apart from announincing the rosy things, ( voice call & roaming free) and to fulfill custommer's expectations what they have created on there mind, but definitely JIO created bambooza to other operators mind. And there will be change in telecom market because of JIO.

Yes,according to me the reliance jio pricing will impact the various operators (idea, airtel, bsnl).It was launched with its cheap rate of internet and with free calling,Thus the market share of different telecom companies reduced.
Reliance is trying to acquire monopoly market to attract the buyers with single seller.Suddenly, every vegetable vendor to rickshaw-pullers owned a mobile phone within just 10 days, Reliance had a million subscribers rolling in and still the count continues.The long term impact of jio will depend upon for how long it will maintain its low tariff for its customers...!!

According to me, Reliance JIO aggressive pricing will surely impact incumbent operators (vodafone, airtel and idea) profitability and sustainability, as this effort is shaking up the telecom industry with free voice and cheap data plans. Reliance Jio’s 4G is using “penetration strategy” which believes in ‘one must pay for only one service, either voice or data’, that has threatened one of the main revenue sources for incumbents who charge for both. Competitors have been trying various data-pricing strategies to retain top-end users and have already cut effective rates. Recently Bharti Airtel and Vodafone India have offered unlimited voice calls on high-value postpaid packs to retain higher revenue paying customers ahead of Jio’s launch. These two along with Idea have also cut down effective data prices by nearly 70 per cent on some plans. This would definitely change the paradigms of telecom sector as more and more competition will be seen in the near future that may lead to several issues like rising expectation of customers from the incumbents and from telecom industry, spreading imperfect competition and monopolistic competition in the market, as there are few sellers in the market and buyers have huge choice of what to buy.

In 2010 Mukesh Ambani bought 96% stake in Infotel Broadband which had won 4G spectrum in all sectors in India. Mukesh Ambani, Chairman of Reliance Industries (RIL) announced the launch of Reliance Jio from September 5th 2016 with an aggressive pricing structure. He also said that "Incumbent operators have significant advantages over new entrants, since incumbents have well established networks and existing customers. New entrants require fair access to both.
Later, they named it to “Jio”, and started building fiber optics network around the country. Reliance Jio has the longest fiber optic network in the country, ranging over 2.5 lakh Kilometers of fiber. Reliance has invested Rs 150,000/= corers into this fiber optic network, which is more than two times the combined investment of Airtel, Idea and Vodafone. Everything Jio have done till now is intended at making money. Because once fiber optic is laid down the cost of operating it is not very huge. On the contrary, one can operate network at minimal cost. Therefore, the only focus is to get more internet users.
So, I think the company’s market structured has transformed from PERFECT COMPETITION to OLIGOPOLY COMPETITION. Because the minimalist approach of Vodafone and Idea towards data creates a paradox. Oligopoly is a market structure in which a small number of firms has the large majority of market share. An oligopoly is similar to a monopoly, except that rather than one firm, two or more firms dominate the market. There is no precise upper limit to the number of firms in an oligopoly, but the number must be low enough that the actions of one firm significantly impact and influence the others. And the pricing strategies followed by the company is PENETRATING PRICING as company quickly wanted to establish large market share. In order to attract customer, the company has established various offerings. Since the customers are very responsive to price change the effective penetration requires a very elastic demand for goods to increase the quantity demanded.
There is no match of RJIO’s with other incumbents because of their unlimited voice offering and free usage which will lead to strong demand for its services as compared to others incumbents Now, the volume of incoming calls on network and on a network depends on two things: Firstly being the number of subscriber on that network and second being the calling rates on the network. Currently, Airtel, Vodafone, Idea have significant subscribers base in India which means incoming calls on their network is pretty high. Secondly, Airtel, Vodafone, and Idea have higher calling tariffs which mean people try and use cheaper networks to make outgoing calls whenever possible. The combination of high subscriber base and high calling rates means that as of now Airtel, Idea, Vodafone operators are net receivers, in most cases against other operators

Yes i am agree with this statement because relaince jio offering to customer at cheaper rate intrenet, calls. so this is highly beneficial to customer according to reaserch Jio's pricing plans to trigger an accelerated consolidation in the fragmented voice market, adding that spectrum and balance sheet limitations of GSM new entrants such as RCom, Aircel, Telenor and Tata Teleservices would enable incumbent carriers to benefit from improvements in voice average revenue per user (ARPU) improvements at the lower end of the market.

yes i think the new plan launched by reliance is very effective and has made a great impact on the other competitors, with such cheap rates and providing 4g services, this plan will definitely trigger many customers and it will eventually hamper the position of the other existing telecom companies, keeping in mind this current scenario many companies have started to bring a decline in the price ranges and the available plans. even the no1 company bharti airtel is coming up with various strategies to attract all the customers.

Jio is a Mumbai-based provider of 4G internet and broadband services in India. Jio provides 4G services on a pan-India level. On September 5, 2016, Jio launched its 4G services. Jio's plans are more focused on the mass market than that of incumbents. At Rs 149 the company is offering 300 MB of data and unlimited local and roaming voice free and access to Jio entertainment apps. The company does not plan to charge for SMS either.
Yes, we see an adverse impact for incumbents. Incumbents have been trying various data-pricing strategies to retain top-end users and have already cut effective rates. Former Airtel CEO Sanjay Kapoor said Jio's entry will impact margins of telcos by 3-4%, making it that much more difficult to raise funds. The launch of reliance Jio is likely to transform the Indian telecom sector, but at the same time, put pressure on multiple fronts on the present telecom operators such as Airtel, BSNL, Vodafone, Idea etc. The company announced always free voice call and lower data tariffs.
As a result, Vodafone India is also offering free calls but within its network for a limited period. From my point of view, there is an imperfect competition which is going on between the telecom companies and the market structure is “OLIGOPOLY”. Pricing policy adopted by RELIANCE JIO is “PENETRATION PRICING POLICY.” On the other hand, reliance jio’s aggressive pricing policy will surely impact incumbent operators like bharti aritel, Vodafone and idea on their profitability and sustainability and at the same time it will change the paradigms of the telecom sector.

yes reliance jio is setting up an example that how internet can be served like water across the country and at the price of mineral water,the new slogan of jio "here begins the datagiri" from "kar lo duniya mutti me" both the concept are greatly appreciated by the people and reach to max no of people in very short duration, free incoming call in 2002 now free outgoing calls in 2016,Reliance is bringing a revolutionary change in the telecom sector and giving a loud and clear message to other companies if you dont have potential you can no longer survive in the market.
JUG JUG JIO..........

Talking about the competiton in this case monopolistic competiton arises because there are few sellers in the market and consumers has choice what to buy the only difference is that only price level changes of different operators.
The telecoms sector is currently reeling under financial stress, high debt burden and slowdown in revenue growth. Further decline in data tariffs may impact operators' profitability and sustainability,"

Yes, In my opinion Reliance Jio's aggressive pricing impact incumbent operators (like Bharti Airtel, Vodafone and Idea) profitability and sustainability.We believe the entry of R-Jio could see some weaker participants such as R-Com, Aircel, Tata DoCoMo and Telenor fail. We believe India’s tel-cos have a tremendous opportunity in data: data revenue has already grown 5-6x over the past 12 quarters for Airtel and Idea.

yes in my opinion Reliance Jio's aggressive pricing impact incumbent operators' (Bharti Airtel, Vodafone and Idea) profitability and sustainability or it would change the paradigms for the telecom sector because it is shaking up the industry with free voice and dirt cheap data, which top rivals Bharti Airtel, Vodafone and Idea will be forced to react to, draining their finances.

Mukesh Ambani-owned Jio's management is counting on its introductory offer of free calls and data to grab a 100 million customers rapidly. Prashant Singhal, global telecom leader at EY, expects Jio's aggressive pricing to impact incumbent operators' profitability and sustainability while Hemant Joshi, partner at Deloitte, said it would change the paradigms for the telecom sector. Rajan Mathews, director general of GSM industry body Cellular Operators Association of India, however, put on a brave face, saying with Jio's offer the battle lines are drawn, and incumbents Bharti Airtel, Vodafone India and Idea Cellular will doubtless match the rates to retain their mid-to high-end customer.

Jio has filed its tariff plans with Telecom Regulatory Authority of India (Trai), promising free voice calls and mobile Internet at a fifth of current market rates along with a wide range of entertainment options once the free offer closes.

Announcing Jio's 4G launch earlier this week, Ambani had said customers must pay for only one service, either voice or data, underscoring a principle that threatens one of the main revenue streams for incumbents-they charge for both.Jio will effectively charge for data at five paisa per MB or Rs 50 per GB.

The type of competition i perceive is going on between the telecom companies is oligopoly competition because Oligopolistic market: The market for service providers is oligopolistic where the participants fight for market share and profits on the basis of prices and differentiated products. Reliance jio has both. It has differentiated its product by setting up a huge bandwidth to handle the traffic of enormous data. And the plans they are offering is at amazingly cheap rate. Masses are overwhelmed by the announcement of unlimited free calling. Jio has an IP network hence all the calls will be routed through internet just like whatsapp calls and skype calls. And once the huge optical fibre network infrastructure is built, there isn’t any marginal cost for the company for providing call service. In an oligopolistic market if some player creates such kind of ripple it forces other players to slash the prices. The strategy of other player’s in the market is solely dependent on Relaince Jiyo. Well played Jio!

predatory pricing is adopted by reliance jio and it is a term that is associated with competition law, and experts in the field say that is something Jio cannot be accused of.

Yes according to me JIO aggressive pricing will impact operators profitability and sustainability as with the launch of super cheap yet super fast internet people will get more attracted to JIO as today everything works with internet. though the other operators have lost millions of rupees because of it and yes this would definitely change the paradigms of telecom sector as to compete with JIO, other will surely lowering their rates to as minimum as possible. i would place the telecom companies like airtel, idea, etc in monopolistic competition as it is a type of imperfect competition.

the reliance Jio's aggressive price impact the operators as all other telecom company is now decreasing the rate of their all packs. The main threat is this that Jio is giving the free 4G internet with a good speed also which has created a chaos in the telecom sector.
The leading company Airtel is also in great worry that what step should they take to counter their next step. The speech of Mukesh Ambani affect the other companies tremendously, that day all the companies suffered the loss of ₹13,800 Cr which is really a thing to think about.

Yes, Reliance aggressive jio's pricing will impact to other companies like Vodafone, Airtel and idea etc. because by reliance jio's strategies like free 4G data for the three months and free voice calling Mukesh Ambani trying to attract the customer. for that reason the customer of its competitors will be shift and the market share will be increase. That's why
reliance jio will give tough time to its competitors and it will definitely impact to other companies like Airtel, Vodafone and Idea etc.

Yes, Reliance Jio's aggressive pricing strategy has a great impact on the competitors as they are offering services at very less price due to which there is a havoc in the market. Thus, trying to have a monopoly in the market.

The competitors will try out some new strategies in order to retain the market share by luring the customers like the competitors can charge lower prices for their services.

For Example- BSNL launched a very cost-effective and affordable promotional unlimited Broadband plan ‘Experience Unlimited BB 249′. Thus, with the advent of Jio the sustainability and profitability of the competitors will be affected.