The euphoric rise of Reliance Jio to No.2 position in the telecommunication market just years after its launch in September 2016 surprised many. Importantly, it also started off a brutal competition in the telecom world as the company made an entry with very cheap data tariff plans as well as free voice calls.
Jio Is The Fastest Growing Telecom Company In India
Reliance Jio has now surpassed Bharti Airtel to become the second largest telecom company in India. Airtel has been the dominant company in the telecom space of the country for more than two decades. After Idea merged with Vodafone Idea in 2018, Airtel came down to No. 2 position. But now Reliance Jio has claimed that position and Airtel have been pushed to No.3 position in the telecom market space.
As of now, Reliance Jio is the fastest growing telecom company in India with a 29.2% market share and more than 300 million subscribers.
Here are a few things that users must know about Reliance Jio:
1. Jio May Soon Overtake Vodafone-Idea
According to a telecom analyst, “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.” The JP Morgan report said that Jio in between January and March 2019 has added 2.7 crores, new customers.
2. Profitable Operations Continue
The telecom company from Reliance Industries continues its profitable run in operations and boasts of earning highest adjusted gross revenue among all the telecom companies.
3. Will Reliance Jio Raise Tariff?
Reliance Jio management recently confirmed that it has no plans to raise the tariff. But analysts believe that the company may be forced to increase the prices in the financial year 2019-2020. It is because the company has to spend around Rs.9,000 crore every year to fulfilling operational requirements like long-term capacity leasing deals for special purpose vehicles (SPVs).
A JP Morgan report released recently says, “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.”
4. Softbank Planning To Invest In Reliance Jio
According to reports, Softbank is planning to invest $2 to 3 billion in Reliance Jio. The JP Morgan research report says that Softbank has since long been wanting to make an investment in Jio.
5. Reconstruction Of Telecom Operations
Recently the company transferred control of its prominent assets- towers and fibers for reconstructing its telecom operations. The company formed two separate infrastructure trusts (InvlTs) to form two subsidiaries – Jio Digital Fibre Pvt.Ltd. and Reliance Jio Infratel Pvt. Ltd.
Reliance transferred its fiber of 7 lakh route KM and 1.75 lakh KM route underdeveloped and built towers to these two separate subsidiaries.