Developments have been piling up in the form of news in national media since the historic launch of Reliance Jio Infocomm. The kick-starter which was an event unlike any other is followed up by striving work schedules which is happening round the clock. The management is running at high speeds in order to get its service on floor for the utilization of common users. On the other end, the India telecom consumers are also keeping a close watch on the developing stories as a large number of subscribers can’t wait to try the services which is about to be offered by one of India’s reliable business group.
Here are some of the major developments aka the “steps forward” towards making Reliance Jio a reality for India.
Acquire 15,000 crores through Rights Issue-
Soon after the launch, Reliance Jio Infocomm Ltd has announced that it is working to raise fund of around 15,000 crores through the rights issue. According to sources the company board members have approved the proposal of issuing 15 billion equity shares of Rs.10 each. This will total up to 15,000 crores; this issue is applicable only to the existing shareholders.
This could prove as destructive news for other telecom companies in India. In an intelligent expansion move-Reliance Jio Infocomm, the telecom arm of The Mukesh Ambani group has joined hands with Reliance Communications (RCOM) which is owned and managed by the younger brother Anil Ambani.
This strategic partnership will enable access to India’s largest telecom spectrum in the segment of 800 and 1800 MHz band that would cover 10 essential circles in the country.
However, the open access to RCOM and other subscribers will be a challenge to Jio which is the newest kid in the block (of course with plenty of spectrum circles to help). It would be interesting to watch if it can shake up the telecom and digital space? Reliance Jio Infocomm will be starting from a ZERO customer base against big names in the business like RCOM and Airtel which hold majority of telecom customers in India.
“#RelianceJio’s 4G-VoLTE handsets will have 4 series-EARTH, WATER, WIND & FIRE. Range starts at 4,000INR”
Sunny side up as Morgan Stanley estimates annual revenues worth $6.69bn for Jio-
Jio Infocomm which is slated to offer its communication services to India by April 2016 is already into good books. Globally renowned and America’s multinational financial services company Morgan Stanley has estimated a yearly revenue worth $6.69bn (more than 45,000 crores) in the next 4 years. It has also predicted that the telecom brand will enjoy a consumer base of around 23% in the non-voice market in India.
Going step-on-step; Reliance Jio is expected to post whopping revenue of $1.7bn by the end of its first year of operations in India (2016-17). The telecom brand will target a customer base of more than 131mn by 2020 (this will be the highest client base by any company within the short 3 years span).
According to the telecom research sources, Jio is en route of becoming the best 4G service provide as per its widest coverage and PAN India approach.
Moreover, the company is all set to target more than 80mn subscribers (high-value users) from the city regions within a record span of 2 years.
The idea of penetrating into the handset making industry (having 4G enabled handsets under its own brand) will probably be the biggest favoring point which would restructure the entire telecommunication business in India.
As mentioned last time-Reliance Jio is born and growing up to be the changeover news of Indian telecommunication industry.