Reliance Jio Dhan Dhana Dhan Offer

RajanP

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Jan 13, 2016
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manojrk

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They probably might come up with a new STV for 90 days and call it "Free for 3 months".
 


RajanP

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the thing is - TRAI has said no more free stuff. That means it can't sell anything free from now on. So no chance for any more free schemes.

And it's hit the industry really hard.



Source
 
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Sushubh

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but i am guessing they can offer a stv of a small amount and give whatever they want under it?
 

RajanP

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But if you ask me, I am not sure what TRAI's problem is. Big Bazaar gives free sugar, and Google is giving its cloud platform free for one year in India. And as the article clearly states, predatory pricing applies only for the dominant operator, not for a startup. This is, if you ask me, pure BS policy by TRAI.

@sushub they will then complain that it is 'below cost' 'predatory etc'.. This thing will ultimately end in competition commission. Why is the TRAI intervening is what I don't understand.

Read this part

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"If Reliance Jio offers its 303 plan at Rs 75 per month, that would imply a price of around Rs 2 per GB, which the rivals are likely to argue is ‘below cost’.

In other words, the company cannot sustain its business if it prices data at Rs 2 per GB and is therefore providing it below cost, they could say.

Jio could counter that BSNL is offering a truly unlimited 3G connection at Rs 1,099 per month — under which 1 GB would cost less than Rs 2.

RIVALS AND DOMINANCE

But it is the remaining two conditions that they could have some trouble applying to this case.

The second condition is that Jio’s offer of 1 GB per day for four months for Rs 303 must threaten the existence of rivals like Bharti Airtel, Idea Cellular and Vodafone India.

This is something that they will find hard to prove, as these companies are still making profit and even if they are pushed into the red for a period of four months, they are unlikely to go out of business.

Finally, the third condition is that Jio must be in a ‘dominant position’ in the telecom market in India."

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AVOID knows they can't win in a court of law, so they just try to use their lobbying power with banks and government. What a shame.
 


xtc

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The thinking is to lock the customer for longer time and take more money.
 

Sudarshan61

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Oct 14, 2016
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And as the article clearly states, predatory pricing applies only for the dominant operator, not for a startup. This is, if you ask me, pure BS policy by TRAI.
Jio is market leader in wireless broadband segment now.
72 million customers as against 40 million data users of Airtel. ...So one can verywell call predatory pricing when data is concerned
 

hrishi.baba

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Sep 15, 2016
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@Sudarshan61 Thing is they comes under mobile operator (as they have taken mobile operator licence ), So actually you can't say market dominant player(Although they are dominant in wireless broadband)
 

RajanP

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the most important factor for dominance is market share, and market share is measured in revenue, not GB.