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#Jio Believes New Business Models Will Emerge From #5G

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#Jio Believes New Business Models Will Emerge From #5G

Matthew Oommen, the deployment of 5G services may pose a huge challenge in the 4G market, believes Matthew Oommen, President of Reliance Jio as per report in Economic Times. There will be major changes in the pricing strategies. Besides, the base of data services will also go through a change. As a matter of fact, Reliance Jio wants to come up with its very own wireless broadband services quite soon.

The president said that the arrival of 5G services will modify the value that the telecom companies offer their users for content, services, and digital solutions.

The top official also said that the 5G service will not be charged based on bits or minutes. Instead, there must be some new pricing strategies that the telecom companies will have to come up with. The pricing mechanism must focus on the revenue that every single user generates for the company.

The Indian telecom industry is already undergoing a financial crunch with the launch of Reliance Jio in 2016. The company further wants to roll out its 5G services as soon as possible, which may lead to even more disruption in the sector.

Even though the government has announced to auction 5G spectrum in the second half of 2018, Reliance Jio wants the auction to take place before that. As per media reports, the 5G services are likely to be rolled out in India by 2020.

According to the president of the company, the telecom industry goes through a continuous transformation. Although the deployment of 5G services may not be able to get rid of the financial burden, it can compensate for the loss that the companies have faced.

Reliance Jio disrupted the Indian market about two years back with the launch of free 4G services for the first six months. It led to a wave of consolidation in the Indian market with several firms forced to close down their operations. Currently, the competition is only among the privately-owned Bharti Airtel, Vodafone Idea and Reliance Jio. The competition will continue in the future as well.

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