How Jio is providing Internet Data at too much low cost? OR How the internet is cheapest in India?

How Jio is providing Internet Data at too much low cost? OR How the internet is cheapest in India?

Hi Friends!

In the previous post, I've mentioned that I'll soon come with a unique and interesting topic. So, Today I'm here with a brand-new topic.

Have you ever think about How Jio is providing data at too much low cost? or How the internet is cheapest in India?  ~  "probably Yes"

 Here I'm talking about Mobile Data only.

 Anyways Let's accelerate it!

The cost of mobile data in India before the entry of Jio was roughly ₹198 for 2GB and the mobile generation was 2G or 3G. The speed was really not satisfactory. We've to work with 1-2 GB data for a month. We've to use data efficiently and judiciously at that time. But time has changed with the rising of Reliance Jio, which was providing data for free initially and then started charging for the data, although the cost was too much low earlier, but it started increasing cost gradually, and still, the cost of data is very much affordable as compared to data cost in other countries. 

For eg- Data cost in the USA is ₹700/GB and In Switzerland, it is around ₹1350/GB.        

(Note- These are rough estimates, need not be accurate, just provided for reference.)

Before, Jio we cannot assume live streaming videos and movies, online classes, high end online gaming, etc.

But, In the current scenario, we're leading in terms of mobile data consumption.~ Forbes reference 

One of the major factors that I believe for low-cost data of Jio is-

Let me elaborate!

Internet is the network of interconnected devices, all over the world. All continents are connected through each other via Submarine Cables that are lying under the oceans. Data travel at very high speed (comparable to the speed of light.) inside those cables, That's why search results from Google server, California to your residence takes few nanoseconds to flash on your screen.

Have a glance at Submarine Cable Map.

So, there are three main intermediator which are responsible for taking internet data to your doorstep.

• Tier-1 Network Company
• Tier-2 Network Company
• Tier-3 Network Company

Let us discuss them one by one.

Tier-1 Network Company- Tier-1                                                                                   

This includes companies that are responsible for transmitting internet data from the server (you are requesting data as a client) to your country. These companies have installed their submarine cables inside the oceans. Data through these cables travel to your country's Datacenters.

Some leading Tier 1 Network companies - Tata Communications( An India company), AT&T (US), Deutsche Telekom Global Carrier (Germany), etc

Now, Jio has also installed submarine cables undersea connecting Asia, Europes, and Africa, so Jio became a Tier-1 company. It simply means that Jio has to pay only for the request of data from the servers of North & South America and Australia not for Asia, Africa, and Europe.

These companies take internet data from servers to Mumbai, Puducherry (Data Centers) in India.

Tier-2 Network Company- Tier2                                                                                    

This includes companies that take internet data from Datacenters of your country to your state. These companies have installed optical fiber cables underground through which data travels. On these companies internet speed depends, depending on which type of cable they are using.

 Jio has also installed optical fiber cables underground, connecting all states with data centers, across India.

 Now coming to Tier-3 Network Company.

Tier-3 Network Company-                                                            

These are state local companies that take your data from state data centers to your house. They've installed their transmission mobile towers across your state. All towers are interconnected with each other. They use radio wave and microwave technology in the transmission of data wirelessly. Through these towers, you got network signals, and able to access the internet.

This is how Internet Data reach your doorstep, after crossing seven seas!

Jio has also installed transmission towers across India covering 18,000 cities and 1 Lakh villages.

Now, see Jio has done all things itself, it is not dependent on any other third-party company for transmission of data. They've installed submarine cables undersea connecting Asia, Europes, and Africa. 

They also collect data through Indian data centers on their own and also transmit data to your home through their own mobile towers.

Other ISPs like Idea, Airtel, Vodafone are totally dependent on other third-party companies for their data transmission. They've to pay an enormously high amount for that. 

Here, Jio has done a tremendous job by one-time investing and saving a lot of money, that's why they are providing internet data at a very low cost. They just have to pay for the maintenance of towers, fiber cables, and nothing else. This is the real business strategy that Mukesh Ambani is the following.

In the current scenario, Reliance Jio became the leading ISP in India and created his monopoly in the Indian market. 

It has captured the Indian Market. It has one of the largest user databases across the world.

 

There one more factor on which the cost of Data depends-Population

Let's quickly talk about it...

No doubt, India has a huge population, being 2nd largest in the world. So data cost per user divided to a greater extent. And data cost in the share of per user becomes low.

Fact- Larger the number of people, cost per user will be low. In countries like the USA, UK, France, Germany, Switzerland, etc. 

The population of the USA is very low as compared to India only 23% of India's population. That's why data cost per user increases in those countries.

The cost of the internet also depends upon the quality of service, that telecom company giving. In India, the speed of the internet is slow due to the huge population but in other countris.there is no such population factor that's why speed and quality of service is excellent. Therefore they are charged more than us.

There is on more question that often comes to your mind that how Jio is giving free & unlimited calls?

Jio is using VoLTE service for the calls which means voice over LTE (Long -Term Evolution) and later on other ISPs also started using this service.

Although the current Data plans are far more expensive than earlier, but still it is very cheaper as compared to Foreign countries, as India is marked for the cheapest Internet country.

These are the facts behind low-cost data.

I hope you guys enjoyed this blog and you've gained some knowledge from it.

Share this blog post among your friends and family, if you like my work. It's a humble request to you!

Wishes & Regards

Author- Aman Tiwari

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