Reliance Jio with its aggressive sales and marketing has been proving a threat to all telecom companies for quite some time now. In the past we have read reports, how brands like Airtel and Vodafone have been announcing a change in their pre-paid plans, offering discounts and added benefits in order to lure customers.
In spite of all this, its been proved now that Reliance Jio has affected the overall business of telecom competitors in a big way. Airtel has reported a net loss of 9.4 billion in its India operations during the end of June quarter whereas last year during the same tie they had registered a net profit of 8.3 billion.
“Industry pricing continues to remain untenable,” said Gopal Vittal, managing director, and chief executive officer, India & South Asia, Airtel. On an optimistic note, he said the company’s mobile data traffic surged 355 percent in India on a year-on-year basis, led by successful bundles, content partnerships, and handset upgrade plans.
However, we don’t see any end to this telecom war anytime soon as Jio has been going on from being aggressive to more aggressive in their marketing strategies and crashing the tariff system, giving nightmares to the competition.
