Reliance Jio Is Fuelling Indian Internet Growth As Per The Mary Meeker Report
Reliance Jio whirlwind growth encountered a speed bump following the announcement of plans by the Internet service provider to offer paid services in 2017. However, the Mary Meeker annual Internet trends report for 2017 indicates that Jio has been a dynamic factor in the rapidly growing Internet usage of India.
Mary Meeker is a researcher at the American venture capital firm Kleiner Perkins Caufield & Byers and calls India as among the “most fascinating markets for the internet on the planet” in her report.
The report hints that the number of Internet users in India is now 355 million, reaching 27 percent of the population. India is now second only to China in the world in the number of Internet users. Further, with such a vast majority still awaiting connections, it continues to be among the potentially most profitable Internet markets.
Two key factors are fuelling this surge. First is the trend of decreasing smartphone prices during the past few years. And, next is the decline in Internet data prices, which certainly received a boost with the advent of Reliance Jio in the previous year.
Jio started its service in September 2016. It provided free data to consumers till December end, with a data cap of 4 GB daily. The offer was subsequently extended, by courtesy of ‘Happy New Year’ plan with a decreased cap of 1 GB daily. This led to Jio compelling different network providers to declare plans providing data at much discounted rates.
As per the Meeker report, the charges of a plan offering 1 GB data each month comes to 23 dollars for twelve months on average. This expense in below 2% of GDP per capita, or the average annual productivity of an Indian. This implies that it is less than the economical limit of Internet according to international standards.
Jio declared its paid ‘Prime’ plans in March 2017. Still after that, the average cost of data per GB has remained very meagre as compared to that furnished by incumbent operators.
It was announced by Reliance chairman Mukesh Ambani in February of this year that Jio had passed the 100 million subscriber mark. The latest figures put out by Jio mention that 72 million users are enrolled in the Prime plan. The Meeker report indicates that Jio has garnered 39% of the mobile broadband market in India and has nearly doubled the number of subscribers as against Airtel which occupies second position.
Also See: – Ways to Supercharge Your Netflix Experience
Akamai’s latest report also alludes that the average Indian broadband speed has risen to 6.8 Mbps. The country is now placed at the 89th position worldwide, with Reliance Jio driving mobile broadband surge with 79% of the total traffic. Due to the data price wars, Indian users now utilize a whole lot data than previously. It was earlier announced by Ambani that Jio consumers were utilizing 100 crore GB of data each month.
Content creators have also profited. There has been a marked increase in music and video streaming in general. The Meeker report mentions the comedy group AIB, which has touched over 100 million views, as an instance. It also says that Indian spent an average of 28 hours each week on mobile, from which 45% time was spent on utilizing entertainment.
Also See: – LG K10 (2018) Smartphone Has Launched
After acquiring the mobile broadband market, Jio is now readying to take on fixed line broadband. It is eager to dish out a gigabit fibre network by Diwali of this year with lucrative prices and high speed. Jio won’t experience similar growth as in the previous year, since consumers have to pay for its services presently. However, it will keep on playing a major role in the progress of the Indian Internet.