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Impact of jio on Digitalization of India. facebook and jio deal. ( i need some point...

Impact of jio on Digitalization of India.
facebook and jio deal.
( i need some point for my ppt)

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Impact of jio on Digitalization of India.

  • Digital India Initiative introduced by Ministry of Electronics and Information Technology of Government of India ensures that government services are made available to citizens electronically.
  • India has the world's 2nd biggest phone clients ( both fixed and mobile phone) with 1.053 billion subscribers and second-largest Internet user base and to keep up high development rate throughout the following couple of years as individuals change to smartphones and gradually move up to 4G.

  • It aims to improve the online infrastructure and to increase the internet connectivity in rural areas.
  • Telecommunication market had seen a tremendous change after the emergence of Reliance Jio. It provided free calling, free data with 4G network and promoted digital services. Jio promises to bridge the rural-urban digital divide.
  • Within the first month, JIO announced that it hadacquired 16 million subscribers of their commercial operations. This is the fastest increase by any mobile networkoperator anywhere in the world. JIO crossed 10 crore endorsers on 22nd February 2017.
  • the Digital India plan could boost GDP up to $1 trillion by 2025. It can play a key role in macro-economic factors such as GDP growth, employment generation, labor productivity, growth in number of businesses and revenue leakages for the Government.
  • RIL has constantly promoted Jio as a key driver of Digital India, the impact has been very different. Within the first few months of the launch of Jio, Urban Teledensity increased from 152% to 170%, whereas Rural density increased by only 2%, from 51% to 53%. Thus, the spread of this improved technology initially seemed to be restricted to urban areas and has thus further increased the urban-rural divide.
  • the entry of Jio has depleted the Universal Service Obligation Fund (USOF). USOF is a government fund which consists of 5% of the fee that telecom operators pay to the government. Providing telecom services in rural and remote areas is not economically viable for private operators, hence this fund is used to provide connectivity in these areas. After the entry of Jio, this fund has been depleted by about Rs 1600 crores, which has seriously hindered the government’s ambitious project of providing connectivity in rural and remote areas.
  • the entry of Reliance Jio has had many consequences on various sections, both positive and negative.
  • Consumers have reaped huge benefits in terms of lower prices and more options. The price of mobile data is now the cheapest in India, a huge advantage and a sign of modernisation and progress.
  • Jio has negatively impacted all the other firms in the industry. It has affected their market share, subscriber base, profit margins and even their survivability. Stiff competition has also caused price wars, unpredictability, and confusion

Facebook and jio deal

  • Facebook-Jio deal can be a huge catalyst in India’s story of digitization with its’ key focus on hyperlocal digital commerce, expanding to tier 2 & 3 cities and even rural areas.
  • Facebook and Jio Platforms will act as "a great catalyst" to make India the world’s leading Digital Society.
  • Mukesh ambani siad that the synergy between Jio and Facebook will help realise Prime Minister Narendra Modi's ambitious goals -- ‘Ease of Living’ for all Indians, especially for common Indians; and ‘Ease of Doing Business’ for all entrepreneurs, especially for small entrepreneurs -- set under the ‘Digital India’ Mission.
  • Facebook will invest Rs 43,574 crore into Jio Platforms, a unit of Reliance Industries, for a 9.99% stake. The investment will value Jio Platforms - a digital apps platform - at Rs 4.62 lakh crore.
  • For Facebook, it means access to over 370 million Jio subscribers, a partnership with one of India’s largest tech companies with a play in telecom services and infrastructure, cloud storage (JioCloud), digital entertainment (JioTV and Jio Cinema), payments (MyJio), communication (JioChat), cybersecurity (JioSecurity), ecommerce (JioMart), health tech (JioHealth-Hub) and IoT (JioMotive for smart car connectivity), and the opportunity to launch new products (e.g., Lasso) through Jio’s vast customer network.
  • This investment in Jio is Facebook’s third in India, after Meesho and Little Eye, a startup building analysis tools for mobile app developers.
  • Facebook’s key take-homes:

    The deal will provide Facebook, the social media giant with a whopping 300 million Indian users, it’s largest subscriber base globally, direct access to Jio’s 370 million subscribers and a strong foothold into India’s booming mobile market.

    Jio’s key take-homes:

    The major push behind Jio’s new partnership with Facebook is the company’s planned launch of a nationwide JioMart e-commerce platform.

  • In a nutshell, the country’s digital ecosystem will get a massive boost through the Facebook- Jio deal at a time when contactless and cashless payments are being promoted to maintain social distancing to curb the spread of the COVID-19. It will strengthen India’s drive to improve the availability, access, and quality of infrastructure that will support the emerging digital economy 2.0.


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