English हिन्दी
Connect with us

Latest business news

The Jio effect

Published

on

Reliance Jio chairman Mukhesh Ambani announces the extension of its free 4G services till March 31 under the Happy New Year Plan in Mumbai in December

[vc_row][vc_column][vc_column_text]With its subscriber base crossing 100 million and their data usage close to that of the US, plus a fresh offer of sharply discounted prices, Mukesh Ambani’s network has disrupted the Indian telecom market. The industry needs to recalibrate and now

By Sujit Bhar

Mukesh Ambani’s Jio is a disruptive network in the Indian Telecom firmament. On February 21, the Reliance Industry chairman, who also heads Jio, revealed three very important figures. First, the network’s subscriber base has now crossed 100 million, a milestone reached in a record time. Secondly, over 100 crore gigabytes of data has already been consumed by its subscribers.

The third was another huge marketing gimmick, regarding Jio prime. Said Ambani: “All customers who subscribed to our service on or before March 31 can enroll in the Jio prime membership for a one-time fee of Rs 99. Prime members will be eligible for all the unlimited benefits availed during the introductory offer for another 12 months till March 31, 2018, by paying a fee of Rs 303 per month.”

The announcement was a big step towards consolidating an even larger subscriber base within a given time-frame. This could change the cost-analysis of all existing telecom network providers and promises to provide connectivity that might be in the region of some developed nations.

The problem, of course, is of assured connectivity, with telecom towers being in short supply for the new network of the largest private corporation in the country. That is something that will need solving. There is another problem brewing, in the quick amalgamation of different networks, gearing up to fight the mega-offensive from Reliance.

Not that Ambani is not aware of all this. Said he: “We will monitor all plans announced by other operators across the country. We will match all these and will provide 25 per cent more data than anyone else. Our solemn promise is to offer better plans at best price.”

The existing scenario

What was the existing scenario in which such a disruptive situation emerged?

According to the Telecom Regulatory Authority of India (TRAI), till January 2017, India “was the world’s second-largest telecommunications market… The deregulation of Foreign Direct Investment (FDI) norms has made the sector one of the fastest growing and a top five employment opportunity generator in the country. The Indian telecom sector is expected to generate four million direct and indirect jobs over the next five years according to estimates by Randstad India”.

The bigger news was about market projections. Says TRAI: “Driven by strong adoption of data consumption on handheld devices, the total mobile services market revenue in India is expected to touch US$ 37 billion in 2017, registering a Compound Annual Growth Rate (CAGR) of 5.2 per cent between 2014 and 2017, according to research firm IDC.”

The forecasts match the Jio offerings. It says: “India is expected to have over 180 million smartphones by 2019, contributing around 13.5 per cent to the global smartphone market.”

That isn’t all. “According to a report by leading research firm Market Research Store, the Indian telecommunication services market will likely grow by 10.3 per cent year-on-year to reach US$ 103.9 billion by 2020,” says the TRAI report.

Accepting the huge market potential, what was the telecom companies’ market share till end of last calendar year?

The following graph (courtesy TRAI), makes it clear.

Pie chart on market share

Pie chart on market share

Idea (16.9 %) has now tied up with Vodafone (18.16 %) to form a block (total 35.06 %), while Reliance Infocomm (7.68 %) has tied up with Tata Telecomm (4.7 %) to garner a 12.38 % market. The largest so far is Bharti Airtel at 23.58 percent of market share. Jio has butted into that, starting at just 6.4 percent.

Future market

The overall subscription data (TRAI) makes things clearer.

Subscription data table

Subscription data table

Jio isn’t just a disruptive force; it has the potential to push open the overall market and force-expand it breadth-wise, incorporating the friendly Narendra  Modi government’s digitization drive.

Tomorrow will be another day, not quite like yesterday and certainly way beyond today. This is the accepted leapfrogging method that India has been adopting for a long time in this field, and reaping benefits.

We must remember Mukesh Ambani’s recent comment about H1B restrictions in the US. He had said that this could be blessing in disguise for Indian IT companies, because they would then have time to look back into the domestic market where opportunities abound.

Hugely disruptive moves such as Jio’s are timely interventions. The industry needs to recalibrate.[/vc_column_text][/vc_column][/vc_row]

Latest business news

Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

Published

on

XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

Continue Reading

India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

Published

on

Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

Continue Reading

India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

Published

on

Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

Continue Reading

Trending

© Copyright 2022 APNLIVE.com