As Reliance Jio is currently the most hottest topic going on in India, all of you might have heard about it. But real question here is how can Reliance give so many services at a very nominal or a throw away price? So today let us explore more about Reliance Jio.
Why Mukesh Ambani wants to enter networking field so badly?
This story requires us to know why Mukesh Ambani is
investing so much in yet another telecom company especially when there is
already another company named Reliance Communications. In 2002, when Dhirubhai
Ambani died, there were some major ownership issues between his two sons - Anil
Ambani & Mukesh Ambani. After some public feud between both the brothers
for the control of Reliance empire, their mother intervened and split Reliance
into two parts in 2005. Anil Ambani got telecom, power, entertainment and
financial services business while Mukesh Ambani received Reliance Industries
and IPCL.
Although Anil Ambani got the Reliance Communications, it was
Mukesh Ambani who started it and revolutionized the Indian mobile industry by
reducing the call rates in the early 2000s, which made mobile phones affordable
to Indians. It was his baby all the way, while Anil Ambani was not even having
a seat in it’s board of directors.
That is not all. To prevent Mukesh Ambani from making
another telecom company and competing with Reliance Communications, they had
inserted a non-compete clause in the agreement.
In 2010, as soon as the non-compete agreement was
scrapped/expired, Mukesh Ambani bought 96% stake in Infotel Broadband which had
won 4G spectrum in all sectors in India.Later they renamed it to Jio, and
started building fiber optic network around the country.
This is not just about personal rivalry. With his experience
in starting up Reliance communications, Mukesh Ambani knows that existing
network providers are not good enough and that he can easily compete with them
and win. Telecom is also a very lucrative business. It is like he gets to
control Internet/communications in India.
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