Table of Contents
POINT TO NOTE
- RIL has invested nearly Rs 4 lakh crore since 2010 to create the Jio digital ecosystem.
JIO PLATFORM
GREAT NEWS FOR RELIANCE
POINT TO NOTE
- The Jio-Facebook deal will help Reliance Industries to reduce the debt burden while on the other hand, it will help Facebook to get a stronger foothold in the market.
RELIANCE DEBT
- RIL’s net debt stands at Rs 1.53 lakh crore
DREAM OF MUKESH AMBANI
- Ambani, in his speech while addressing the company’s 42nd Annual General Meeting on August 12, 2019, said the company had a “very clear roadmap to becoming a zero net debt company by March 31, 2021.”
RELIANCE RETAIL
- WhatsApp already plays an important role in helping people and businesses connect in India. Reliance Retail’s New Commerce platform, JioMart, is being built in partnership with millions of small merchants and kirana shops to empower them to better serve the needs of Indian consumers
WHAT’S IN IT FOR FACEBOOK?
- India may be already the biggest market for Facebook (260 million users), WhatsApp (400 million users), and the second largest for Instagram (80 million users).
- The U.S. population today, at the start of 2020, numbers just over 331 million people.
FACEBOOK WANTS LARGER ACCESS
- But Facebook intended to do more, especially after it was forced to shut down Free Basics in 2016.
- Now it can use Jio’ssubscriber base of nearly 400 million users to reach out to customers
- For instance, the moment Facebook launches its short-form video app Lasso on Jio’splatform it will immediately become bigger than TikTok, the Chinese app that is immensely popular in India.
- TikTok currently has about 200 million users in India.
- Facebook will bank on this investment, which at $5.7 billion is the highest the American multinational has invested outside its home market, to drive its future growth in India.
- the Facebook-owned WhatsApp chat service is planning to launch a payment service.
- IS IT GOOD FOR CUSTOMERS IN LONG RUN?
POINT TO NOTE
- The telecom sector in india still needs government support if we want to avoid a duopoly, dominated by jio
- The facebook reliance deal will make Jio stronger and Bharti airtel and Idea will find it card to match up to it
- This can lead to loss in competition and that is bad for the consumers
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