Will 4G Employee Referral Offer Help Reliance Jio?

Will-4G-Employee-Referral-Offer-Help-Reliance-Jio?Reliance Jio has extended 4G test launch to public through 4G Employee Referral Offer whereby Reliance Group employees can invite 10 people for 4G SIM.

Under the 4G Employee Referral Offer, new subscribers will get limited voice minutes, unlimited data and limited access to apps for three months once they buy Reliance LYF 4G handset irrespective of the price.

The big question is will 4G Employee Referral Offer help Reliance Jio?

4G Handset Penetration
First, the biggest challenge for any 4G operator in India is the availability of 4G handsets in the hands of consumers as penetration of 4G handsets in India is presently low. Once 4G handsets are with the consumer and the penetration increases, 4G operators can then pitch for converting 3G SIM to 4G which is the next big challenge.

Reliance Jio through 4G Employee Referral Offer is planning to get 4G handsets in consumer hands and also increase 4G handset penetration in the country by helping subscribers to spend at least Rs 5,500 to procure 4G handset. This will further come down with the passage of time.

Once Reliance LYF 4G handsets are bought by consumers they are bound to use Jio 4G services which are free to get a feel of services be it voice, data and applications like Jio Play (Live TV), Jio On Demand (latest movies and TV shows), Jio Beats (Music), Jio Mags (magazines), Jio News (newspapers), Jio Express News (news feed), Jio Drive (5 GB data on cloud) and Jio Security (virus protection). None of the existing 4G operators have complete bouquet of service vis-a-vis Jio.

Network Quality Improvement
First, the different phases of test launch like 4G Employee Referral Offer and Reliance Group Employees Offer will definitely help Reliance Jio to improve its quality of service significantly before it goes for a big bang 4G commercial launch. Even subscribers will get an opportunity to compare Jio 4G services with other operators.

All these test launches gives enough time for Reliance Jio to further improve its 4G network be it on the process, capacity, network quality, upload speed, download speed, indoor coverage and outdoor coverage before it goes for a commercial launch thereby providing consumers improved quality of service.

“Further expansion of test subscribers is likely to accelerate Jio’s network optimisation and bring the new entrant closer to a commercial launch,” says CLSA.

4G Subscriber Addition
Reliance Jio launched 4G services on a trial basis on 28th December 2015 and it presently has a pan-India base of more than 500,000 subscribers in the last four months. To give a good fight to Bharti Airtel, Idea Cellular and Vodafone India on 4G, Reliance Jio has no other option but to add more 4G subscribers.

The 4G Employee Referral Offer will definitely help in increasing 4G subscribers by providing new subscribers with lot of freebies like limited voice minutes, unlimited data and limited access to apps for three months once they buy Reliance LYF 4G handset irrespective of the price. So, any sale of LYF handset will result in sale of 4G SIM for the company.

If Reliance Jio’s 4G voice, data and app services are up to the mark, majority will start using Jio before its services gets commercialized which is extremely positive for the company.

It is good to see operators deploying different strategies for increasing 4G subscribers but the winner will be the one whose network quality and app portfolio works seamlessly with 4G handset. In the present circumstances, if Jio is successful in selling its 4G LYF handset it would be an uphill task for other operators to emulate and if it is not it will be advantage for incumbent operators like Bharti Airtel, Idea Cellular and Vodafone.

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