Fri. Mar 29th, 2024
Reliance Jio and Reliance Communications

Jio has always dominated Rcom since its launch time. Reliance Jio, which is promoted by billionaire Mukesh Ambani, provides wireless 4G LTE network with coverage across all 22 telecom circles in India. RCom is owned by Anil Ambani and provides services across all spectrums. However, it has got an approval of providing 4G services only in 12 circles. According to the latest released data from TRAI, Jio stands fourth in terms of subscribers, while RCom stands somewhere below in the log.

RCom 4G is running on Jio’s all-IP system. The company hasn’t built a network for providing 4G services, it is using Jio’s spectrum and infrastructure resources to provide service to the customers. In short, RCom is another venture of Jio. Since Jio and Reliance Communications are using the same spectrum, Jio customers will get an additional advantage. Jio has given access to is app base, whereas Reliance Communication users do not have the same.

Jio is better than RCom in every aspect. As Jio has built a solid 4G network providing services in small villages and highways where even 2G/3G cannot work properly. While RCom customers can access 2G/3G networks depending on circle to circle, the average speed of their 4G network is comparatively very high than RCom. Jio’s average speed is approximately 8.3Mbps while that of RCom is only 2.9Mbps. This result is carried out by the users themselves. Additionally, Jio 4G data plans would be 50% cheaper than RCom 4G plans according to the sources.

Reliance Communications has lost business to Reliance Jio. The survival of Reliance Communications in the market depends on the two deals. The one with the Aircel, selling him half of its wireless telecom business while another is selling 51 percent of its towers to Brookfield of Canada. First RCom will demerge its existing cellular business and then merge it with Aircel. Consequently, the merger between the Aircel and RCom will create India’s fourth largest telecommunications company. This would result in reducing overall debt of RCom by Rs 20,000 crore while that of Aircel by Rs 4,000 crore. This merging would have a huge impact on the market. Apart from this Mukesh Ambani is also investing more than 1.5 lakh crores in Reliance Jio. Let’s wait and see that this merger will prove beneficial to Rcom or Rjio will again overshadow Rcom.

By Bharat