Today, I would like to point out some facts which you can never hear from Media. These facts will clear everything about Jio and Sunil Mittal's interview and allegations.
1. Free means Pay us Money for AirtelThis is natural that humans love free stuff. Everybody in this planet love free and something extra. But for Airtel 'FREE' word is trick to attract customers. For Airtel Free means Pay us and we will give you Free minutes, calls and SMS. How can you say It is free if you are charging for it? So, since last few months most of us are very angry and usually don't give any importance to Airtel's Advertisements. Sunil Mittal said Jio's free offers are disturbing market while they are using this Free word in all of their Advertisements. Remember, what is Airtel to Airtel free calls? it means pay us money & get it for free. If you can use free stuff for your growth why not Reliance Jio?
2. Free means 100% free for Reliance JioEverybody knows that Jio is giving us everything for free and this free stuff will continue till 31st march. When a company is trying to think about consumers Airtel tries to create hurdles everyday. Airtel knows that They can't give anything for free to It's customers that is why they are trying to stop Jio and their Offers. It clearly shows that Airtel doesn't want to see us getting free stuffs and they only want us to pay more and more. Even if Jio is providing free services, it is not helping Jio earn any profit, it is only the customer who getting benefits. So what is making Airtel angry like that? Isn't is money? yes Airtel is a money Hungry company whose service is getting worst day by day.
3. Misunderstanding on Reliance and GovernmentPeople always blame Reliance for using government for making profits and that is not always right. People also think that Jio is converting "Black Money" into white, but they don't know that Jio is registered since 2007 and since December 2015, Reliance employees are using Jio services[ Just ask any Reliance Jio employee about this.]. So those who thinks that Jio is converting Black into white, please note that Jio is not charging you any money so how can you say they are converting it?
While It is clear that Jio is suffering from loss because of giving everything for free and yet people are behaving like that. Airtel is also suffering because of Jio's free offers but that is not actual loss. That type of loss is like I can sell 10 Rs stuff in 100Rs but because of Jio I am selling this at 50Rs or 60Rs, so they are assuming it as a loss. Airtel's actual loss is because of Demonetization and everybody knows that demonetization affects everybody including IDEA and Vodafone.
BAML already said in their report that Airtel has the most loyal customer base and had about 97.7% customer retention rate, so they don't need to worry about but still they have to go after the extension offer.
4. Airtel Payment BankWe all know about Airtel's Payment Bank and offers you can redeem after opening an account. They gave a very high Interest rate along with free calls to acquire 100 million customer base. No one said asked Airtel, why they are giving free calls and very high Interest Rates. While Jio is trying to get 100 million customer base by giving free services, Sunil Mittal thinks that they are disturbing the telecom market. Can you tell me Mr. Sunil, if Jio is doing what then what are you doing with your payment bank?.
Also in Payment Bank, you can't get Loan, so what is the source of generating high profit, which makes you able to share 8% Interest rate. . As mush I know, there is no industry which is generating this much of the profit which makes you pay 8% interest to customers.