How Reliance Jio can Offer Free Voice Calls While Other Networks Command Hefty Amount : Case Study

Last Updated: 2 September, 2016
Reliance jio free vloce calls

Reliance Jio is the current wave in the country and its making data revolution in the telecom sector. At the company’s Annual General Meeting, Mukesh Ambani Chairman and Managing Director announced the launch of its commercial services in India from September 5, also revealing the data tariff plan for the Jio services.

This data tariff has put its rival, including but not limited to, Bharathi Airtel, Idea and Vodafone under immense stress. These companies have already reduced their data prices to match Jio’s groundbreaking data plans and offers; however, Jio is a step further with its thriving offers.

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Free Voice Calls

One of such offers is its Free Voice Calls, which isn’t actually free, but it is how you positioning your business in the market. According to their tariff plans, making calls to other network (local calls) is also free along with free nationwide roaming. This offer is the first of its kind in the industry while other networks already have unlimited night voice calls and free calls to specific number and more within that network.

How Relaince Jio differs from other networks?

Unlike other networks, Reliance Jio isn’t made for offering voice as their primary business. But other networks were built only for that. Other networks use 2G and 3G spectrum bands for voice calls and 4G bands for data whereas Jio uses 4G bands for both data and voice.

Reliance Jio is an IP-based network and it is the only network in India of its kind. So offering free calls isn’t a big deal to them because literally it is not free voice calls which should be rather called as data voice call in technical.

How it is possible?

In general 4G bands supports VoLTE (voice over LTE) which Jio uses it for its network offering so called “free voice calls” to its subscribers. It is similar to making calls through internet.

Jio is purely a 4G network service which works only on phones that support 4G. 4G is exclusively designed for high speed data transfer and it cannot handle normal mobile calls. To solve this issue, other players switch to 3G/2G whenever a call is made. Since Jio doesn’t have 2G/3G, they send calls as data through 4G itself. 

When it is saying that it is going to make interconnect calls free, there’s an interconnect charge of 14p for making an interconnection with other telecom incumbents, according to TRAI. So if it is going to make them free, who will incur the 14p interconnect charge?

Reliance Jio secured 4G spectrum bands just to offer 4G data connectivity and its entire infrastructure was built with latest technologies including its network towers, fiber optics, network devices to support 4G in the first place. They can even support 5G or 6G as well.

It works on a simple business tactics. When you had built an entire network infrastructure, it doesn’t cost anything for the network provider to provide data and voice.

The primary goal of Jio is to sell its data that comes bundled with voice so it’s coining the term “free” in the package and selling it. Whatever it may be, you are going to pay onto to the data which isn’t that cheap as Reliance claim.

There’s an old saying, “there is nothing in the world comes free, everything in the world has some cost component.”