Reliance Jio is no.2 in the Indian telecom market: What users should know

Reliance Jio is no.2 in the Indian telecom market: What users should know
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Highlights

Mukesh Ambani owned Reliance Jio has surpassed Bharti Airtel's subscriber base and stood as the second-largest telecom company in India. Airtel ruled the Indian telecom space for almost two decades.

Almost two-and-a-half years after initiating mobile phone services, Reliance Jio has surpassed Bharti Airtel's subscriber base and stood as the second-largest telecom company in India. Jio has a customer base of 30.6 crores, now follows only Vodafone-Idea. Airtel has 28.4 crore subscribers while Vodafone-Idea declared in December 2018 that it had 38.7 crore subscribers

1. The spectacular growth of Reliance Jio is mainly because of the cheap data tariff and free voice calls that the telco offers

The launch of Reliance Jio services in September 2016 led to a fierce price war in the telecom industry. The firm growth has been fuelled by its aggressive and dirt-cheap data tariff plans and free voice calls.



2. Analyst see Jio overtaking Vodafone-Idea in subscriber numbers in the coming quarters

A telecom analyst said, "Vodafone-Idea is the most vulnerable of the three private players in the market, and it may just be a matter of few more quarters, maybe three-four before it is overtaken by Jio."




3. A JP Morgan report says, Jio added 2.7 crore new customers from January to March 2019




4. Reliance Jio is making a profit in its operations and boasts of highest adjusted gross revenue (AGR) in access services amongst all telecom companies




5. Analysts warn Reliance Jio customers

Recently analysts said Reliance Jio management restated that the company has no plans to raise the tariff. However, as per analysts, the firm may be forced to raise prices in this financial year as it needs to spend about Rs 9,000 crore a year on its long-term capacity leasing deals with special purpose vehicles (SPVs). According to a JP Morgan report, "The likelihood of Jio raising prices is higher today than it was six to nine months ago, which has positive implications for incumbent peers, particularly, Vodafone Idea.




6. Japan's Softbank firm may invest $2-3 billion in Reliance Jio

Japan's Softbank is planning to make an investment of USD 2-3 billion in India's fastest-growing telecom company Reliance Jio as billionaire Mukesh Ambani looks to deleverage business by selling stakes, according to ET Now.

According to JP Morgan's research report, Softbank has long been seen as a potential investor in Jio.




7. Two new subsidiaries created, Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd

Reliance Jio recently revised its telecom operations by transferring control of its key assets - fibre and towers - to two separate infrastructure trusts (InvITs). There were two subsidiaries created out of the demerger process – Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd. The firm is said to have transferred its 7 lakh route KM of fibre and 1.75 lakh route KM built and underdevelopment towers into the two separate subsidiaries, one for the towers and the other for fibre assets.






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