What are the Reasons that Mukesh Ambani-led Reliance Jio signed a mega Rs 43,574-crore deal with Facebook?
Phygital exchange and super-application: Physical-physical, as well as digital trading and super-application, is the reason behind the tie-up? Reliance Jio has always been a tech company, and when it launched its 4 G plans back in September 2016, it made some decent money out of it.
- It could turn the data on billions of Indians into money.
- They’ve won over 300 million Indian customers with their low-cost data plans.
- They mixed the WhatsApp with the JioMart!
A safe bet on the future wrath: Global technology and foreign companies faced challenges in India in terms of law enforcement and, in particular, the obstacles they face, such as the security of personal data for Indian citizens and existing organizations, have never been more closely monitored. This may be true as WhatsApp has faced a great deal in the implementation of payment services in India, and these processes can be eased if they have a domestic partner like Ambani!
Ambani’s Debt-Free Goals: Another explanation of why Ambani and Facebook’s new collaboration would be a huge success for Ambani is that it will aid RIL’s ambition to become net-debt free by early 2021. With the cash flow from the Facebook contract, the Jio platform is expected to earn around INR 15,000 crores, which will be used by RIL to minimize the debt. BP’s investment + INR 7,000 crore investment in the oil marketing joint venture is projected to address the debt by 50,000 crores. It is a big leap towards a free net debt by the end of the financial year.
An ocean of data for Facebook: even if all of the above explanations or planned benefits fail, Zuckerberg still has direct access to the data of India’s small and medium-sized enterprises and Jio’s network of users. Although it is not obvious and the Reliance and FB officials maintain that there will be no data-sharing arrangement on the table, it could be feasible in the immediate future. And, also it could make the way for Reliance to monetize Jio’s subscriber list. In turn, it is all a ‘give and take’ partnership between Facebook and Ambani. And, it is surely going to benefit both of them. And, well, it might make way for Dependency to monetize Jio’s list of subscribers. It’s all, in effect, a ‘give and take’ relationship between Facebook and Ambani. And, it’s sure to help both of them.
Who is Mukesh Ambani and Mark Zuckerberg?
Mukesh Dhirubhai Ambani (born 19 April 1957) is an Indian billionaire business magnate and chairman, managing director and largest shareholder of Reliance Industries Ltd. (RIL), Fortune Global 500 and India’s most valuable market value firm. Mukesh Ambani is chairing and managing $88 billion (revenue) oil and gas giant Reliance Industries, one of India’s most profitable firms. In 1966, Reliance was founded by his late father, Dhirubhai Ambani, a yarn trader, as a small textile manufacturer.
Mark Zuckerberg is a co-founder and CEO of Facebook’s social networking website and one of the world’s youngest billionaires.
He is known as a co-founder of Facebook, Inc. and serves as its chairman, chief executive officer, and controlling shareholder.
When did Mukesh Ambani confirm the contract with Mark Zuckerberg, and what agreement did they make?
On April 22, Facebook said it would invest $5.7 billion in Reliance Jio with a 9.9 per cent stake in the company, making it the largest investment for a minority stake in the technology company in the world. Here’s what Facebook CEO and co-founder Mark Zuckerberg said in his statement.
Why did Facebook select Reliance Jio for investment?
By putting together JioMart, which is Jio’s small business initiative with WhatsApp, Facebook aims to connect people with companies, shops, and goods, giving them a chance to explore new items. … At the end of the day, the Jio-Facebook deal would boost India’s drive for ‘Digital India.’
Where and when did Mukesh Ambani confirm the contract with Mark Zuckerberg, and what agreement did they make?
On April 22, in Menlo Park, California (U.S.).Facebook said it would invest $5.7 billion in Reliance Jio with a 9.9 per cent stake in the company, making it the largest investment for a minority stake in the technology company in the world. Here’s what Facebook CEO and co-founder Mark Zuckerberg said in his statement.
How Reliance Jio turned India’s telecommunications industry into four charts?
It’s been a little more than three years since Reliance Jio Infocomm Ltd introduced its services and changed the face of the industry with vast volumes of data and voice access restrictions. The era was marked by a massive rise in data use and voice traffic and a sharp decline in consumer spending on telecommunications.
Data explosion: The number of data subscribers has doubled and their share of the overall subscriber base has risen to 57%, from 32% in June 2016, according to data collected from the quarterly performance measures of the Telecom Regulatory Authority of India. The proportion of consumers using 3 G and 4 G networks grew to 52 per cent of the overall user base, up from 14 per cent three years earlier.
Demand for data: Unlimited voice plans have also activated talkative Indians, Kotak’s analysts say, with voice use per customer nearly doubling to around 700 minutes per user per month. Total voice traffic has risen by 110 per cent to 2.4 trillion minutes.
The talkative Indian unleashed: Of course, all this internet browsing and chatting have been made possible by lower tariffs. The average revenue per user decreased by 41 per cent to Rs74 per month over the last three years, according to Trai data.
Cheaper bills: Net Telecom spending by customers has decreased by approximately 41 per cent since the introduction of Reliance Jio’s services.
Conclusion:
The FB-Jio partnership brings together one of the largest data platforms in the world and India’s largest data platform. India is the biggest market for social networking giant flagship brands in terms of subscribers, Facebook (over 250 million), and WhatsApp (400 million). The timing of the deal could not have been better to improve India’s reputation as a destination for foreign investment. The alliance establishes a dominant Indian retail player with rivals such as Amazon and Walmart-owned Flipkart.
‘Small is huge’ — that’s the slogan of Reliance Jio for the future. It hopes to put together a plethora of small businesses on its Jio platform to create India’s largest e-commerce engine. This vision is consistent with Facebook, which monetizes its platform by listing small businesses and would like more business to be done through Facebook and WhatsApp in India.
Jio Money and WhatsApp Pay may play an important role as an enabler of e-commerce. Although online commerce could be the start, healthcare could be the next big opportunity for the web.
Many state governments, connected to Jio, are now providing weak smartphones as part of their official program. Luckily, Indian customers are getting wiser. For example, during the Covid-19 lockout, they saw what kind of business helped them keep their homes supplied with food and supplies, and which kind sat silent. Consumers have a strong understanding of business opportunists and market creators. This might have swelled the use of the network. The future of online commerce in India is unfolding.
Hope guys, you like this post. Thanks for reading.
Keep Clapping (You can clap up to +50)
Your love is everything for me. Keep Appreciating.