ITV

Category: Telecom

  • Jio and organised retail add to RIL’s growth in second quarter

    Jio and organised retail add to RIL’s growth in second quarter

    BENGALURU: Mukesh Dhirubhai Ambani’s largest startup in the world in the form of Reliance Jio Infocomm Ltd or Jio has only gone from strength to strength since its inception. The mobile and broadband subsidiary of Reliance Industries Ltd (RIL), which is already the largest mobile data carrier in the world with more than 25 crore subscribers, reported EBITDA growth of nearly 2.5 times for the quarter ended 30 September 2018 (Q2 2019, quarter under review) as compared to the corresponding year ago quarter. Jio’s operating revenue for Q2 2019 grew by a healthy 50.3 percent year-on- year (y-o-y).

    Some of the highlights of Jio’s performance in Q2 2019 include:

    Standalone revenue from operations for Q2 2019 was Rs 9,240 crore  with a 13.9 per cent q-o-q  growth as compared to Rs 8,109 crore in the previous quarter Q1 2019.

    Jio’s standalone EBITDA of Rs 3,573 crore for Q2 209 was 13.5 per cent higher q-o-q with EBITDA margin of 38.7 per cent as compared to Rs 3,147 crore and an EBITDA margin of 38.8 per cent in Q1 2019.

    Jio’s standalone Net Profit was Rs 681 crore.

    The company says that it closed Q2 2019 with a subscriber base  of 25.23 crore. Jio says in a press release that it had the lowest churn in the industry at 0.66 per cent per month. ARPU during the quarter was Rs 131.7 per subscriber per month.

    RIL’s organised retail arm’s revenue for Q2 FY19 grew by 121.5 per cent y-o-y to Rs 32,436 crore from Rs 14,646 crore. The segment’s EBIT rose by an unprecedented 272.5 per cent y-o-y to Rs 1,244 crore from Rs 334 crore.

    RIL chairman Amabani said in a press release, “Jio was conceived with a mission to connect everyone and everything, everywhere – always at the highest quality and the most affordable price. We, at Jio, are glad with our progress towards our mission with more than 250 million subscribers on our network within 25 months of commencement of services. We have enabled our customers to adopt the digital life, with record consumption of data and use of digital services. Our next generation FTTH and enterprise services are now being made available to our customers to further enhance our value proposition to our customers.”

    “We are making rapid progress on the growth of our digital platforms, across new commerce, media and entertainment, agriculture, education, healthcare and financial services, which will further enhance the quality of life and productivity of the people of India, ” added Ambani.

    In an RIL earnings release, Ambani said, “Our commitment to create consumer value is gathering momentum, with the robust scale-up of India- centric consumer facing businesses. The financial performance of both Retail and Jio reflect the benefits of scale, technology and operational efficiencies. Retail business EBITDA has grown three fold on y-o-y basis whereas Reliance Jio EBITDA has grown nearly 2.5 times. Jio has now crossed 250 million subscriber milestone and continues to be the largest mobile data carrier in the world.”

    RIL achieved revenue of Rs 156,291 crore ($ 21.6 billion), an increase of 54.5 per cent as compared to Rs 101,169 crore in the corresponding period of the previous year. RILs’ Profit after tax (PAT) was higher by 17.4 per cent at Rs 9,516 crore ($ 1.3 billion) as against Rs 8,109 crore in the corresponding period of the previous year. Operating profit before other income and depreciation increased by 35.6 per cent to Rs 21,108 crore ($ 2.9 billion) from Rs 15,565 crore in the corresponding period of the previous year.

  • Mukesh Ambani’s RIL announces acquisition of majority stake in Hathway & DEN Networks

    Mukesh Ambani’s RIL announces acquisition of majority stake in Hathway & DEN Networks

    MUMBAI: Reliance Industries today announced strategic investments of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs. 245 crore from the existing promoters for a 66 per cent stake in Den Networks Limited (DEN) and Rs 2,940 crore for a 51.3 per cent stake in Hathway Cable and Datacom Limited.

    RIL is also planning to make open offers in DEN and Hathway as well as GTPL Hathway a company jointly controlled by Hathway with 37.3 per cent stake and Hathway Bhawani Cabletel and Datacomm Limited, a subsidiary of Hathway under SEBI Takeover Regulations.

    Through this transaction, Reliance and Jio will be strengthening the 27,000 LCOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India  through  (a) access  to  superior  back-end  infrastructure;  (b) tie-ups  with  content producers; (c) access to latest business platforms to improve business efficiencies and deliver customer experience; and (d) investment in digital infrastructure for connecting customers. And the LCOs will continue to do what they do best – provide localized, intimate, people-friendly and ultra-fast customer services. This will create multiple future opportunities for LCOs as Jio rolls out new services and platforms.

    These investments and the creation of the digital eco-system will open up new channels for content monetization. This will lead to exponential growth for the content producers and broadcasters.

    These investments will help in accelerating the march towards Digital India. Reliance will ensure compliance with all the regulatory and statutory requirements at all times and works towards systematic growth of the sector.

    Jio has already started work on connecting 50 million homes across 1,100 cities. It will work together with Hathway and DEN and all the LCOs to offer a quick and affordable upgrade to a world-class lineup of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities. This will accelerate Jio’s commitment to connect 50 million homes with JioGigaFiber in the shortest possible time.

    RIL chairman and MD Mukesh D. Ambani said, “We are glad to join hands with Shri Rajan Raheja and Shri Sameer Manchanda, two of the pioneers in the MSO industry. Our investments in DEN and Hathway create a win-win-win outcome for the LCOs, customers, content producers and the eco-system.

    With Local Cable Operators now as part of the Jio ecosystem, we look forward to bringing Jio’s advanced JioGigaFiber and Smart Home Solutions to more Indian homes, even quicker. We look forward to welcoming other MSOs and LCOs to be part of this partnership. This will result in growing wireline data connectivity in India and making state-of-the-art high- speed affordable internet and digital services accessible to the widest population in the shortest possible time.”

  • RIL close to buying majority stakes in DEN, Hathway

    RIL close to buying majority stakes in DEN, Hathway

    MUMBAI: Reliance Industries is expected to buy controlling stakes in two of India’s largest cable TV and broadband service providers, DEN Networks and Hathway Cable & Datacom, according to a report by the Times of India (TOI). The plan mostly is to increase the reach in particular regions of the country for its Gigafiber, Fiber-to-the-Home (FTTH) service.

    In May 2017, Reliance Jio had begun rolling out beta trials of the FTTH service at select locations in six cities- Mumbai, Delhi-NCR, Ahmedabad, Jamnagar, Surat and Vadodara.

    RIL is likely to own more than 25 per cent each in the two companies which will enable it to control developments and get a seat on the board. The deal is expected to be announced in the next few days. Both companies have told the stock exchanges that the respective boards are meeting on 17 October to discuss and approve a proposal for raising funds.

    “RIL wants to create a platform which will accelerate home broadband penetration in India, which is currently in a low single-digit. The aim is to push home broadband penetration to around 60 per cent in the coming years,” TOI quoted a source.

    Last September, RIL was in advanced talks to acquire DEN but could not reach an agreement. Some months ago, it began talks with Hathway as well.

    Industry experts told TOI that a stake in Hathway and DEN will be a major boost to Jio. Both operators have 7.2 million digital cable subscribers each, with operations across 350 and 200 cities, respectively.

  • AVIA announces new members

    AVIA announces new members

    MUMBAI: The Asia Video Industry Association (AVIA) today announced that Netflix has joined as a Patron member, alongside Globe Telecom as a Corporate member, strengthening the mandate of the Association to represent the interests of companies across the broader video industry in Asia.

    Additionally, in joining AVIA, Netflix has increased their role in supporting the industry by committing to becoming a Steering Committee member for the Coalition Against Piracy (CAP); piracy being one of the central pillars of the newly refocused Association.

    CAP is at the forefront of fighting piracy through enforcement, disruption of intermediaries in the piracy chain, along with government and consumer outreach. AVIA is also a supporter of Globe’s ‘Play it Right’ campaign to discourage video piracy.

    “As we create new forms of content, this is an opportunity for Globe to enhance synergy with other key stakeholders in the global entertainment industry”, said Globe President and CEO, Ernest Cu. “Through AVIA we will ensure that our customers get the full benefit of our partnerships. In addition, this will help strengthen our advocacy of protecting original content providers against piracy.”

    Louis Bowell, AVIA CEO, further stated that “It is clear that whatever part of the video industry you come from, there are concerns about the growing threat from video piracy and there is a need to have farsighted policies to foster growth. I am delighted that we will be able to work together with Netflix and Globe Telecom on these crucial issues for our industry”.

    AVIA is open to companies who care about the future of the video industry in Asia Pacific and want to be part of a community of like-minded, responsible companies who work to make it stronger and healthier. Please visit www.asiavia.org for information on how to join.

  • 3 more quarters of losses for telecom industry, says COAI

    3 more quarters of losses for telecom industry, says COAI

    MUMBAI: According to COAI director general Rajan Mathews, the telecom sector will probably experience three or more quarters of losses, as the telcos remain under pressure due to high levies and unsustainable tariffs.

    Speaking to PTI, Mathews said, “Under the current scenario, I see at least another three plus quarters of losses. Why? Because personally, I do not think the present tariffs are sustainable for long term health of the industry.”

    Mathews explained that the high incidence of levies – licence fee and spectrum usage charges – intermingled by upfront payment for radio-waves have added to the operators' woes. Taking that into account he stated that 2018-19 will certainly be a "tough year" in terms of financial performance of the industry.

    “Already we have been through two quarters of losses (this fiscal). So something dramatic has to happen in the next two quarters and we know that is not going to happen. Clearly, 2018-19 will be a tough year in terms of financial performance for the industry but the beginning of fiscal 2019-20 will see clarity (emerging),” he added.

    When asked about whether the mobile rates will fall further or stabilise, he told, “The tariffs are already at affordable levels. It is difficult for me to see how much further the tariffs can drop.”

    He also described that the continuous decline in revenue stream would be unfavourable for the industry as telcos will need investments for updating technology and for wider and better coverage.

    Reliance Jio had set off a tariff war since its arrival in the market. In counter to Jio’s services, rival companies such as Bharti Airtel and Vodafone Idea had to cut tariffs.

    Bharti Airtel reported a loss of Rs 940 crore from its mainstay India business for the June quarter. However, Airtel in the April-June period reported a net profit of Rs 97 crore on a consolidated basis after taking into account revenues from its Africa business.

  • Import tariffs hike to hurt telcos’ network expansion: Report

    Import tariffs hike to hurt telcos’ network expansion: Report

    MUMBAI: The government, on Thursday, announced a plan to rein in imports and bolster a falling rupee. It will raise import tariffs on several electronic items and communication devices. The tariff hike was the second such move by the government in a two-week span according to Reuters.

    The government attempts to raise import barriers to curtail the import of goods it deems as "non-essential" items. The list including wearables like smartwatches, voice over internet protocol equipment and phones, and Ethernet switches, among other items.

    Last month, it raised import tariffs on 19 "non-essential items," including air conditioners, refrigerators, footwear, speakers, luggage and aviation turbine fuel, among other items.

    The gambit is part of a plan to contain a slide in the rupee, which has weakened more than 14 per cent against the US dollar this year, hit by a rout in emerging markets and other domestic factors such as a widening current account deficit.

    The plan, which becomes effective on Friday, will potentially also hurt Indian telecom carriers such as Reliance Jio Infocomm, Bharti Airtel and Idea, said Neil Shah of tech research firm Counterpoint.

    "This will slow down the rollout of high-speed broadband which uses optical fibre and LTE networks," Shah told Reuters, adding however that it could help local telecom equipment makers like Tata Teleservices that manufacture some of this equipment locally.

    India announced higher import tax on electronics products such as mobile phones and television sets in December, and then on 40 more items in the budget in February. These include goods as varied as sunglasses, juices and auto components.

  • Airtel partners Flipkart, MakeMyTrip, Netflix to counter Jio

    Airtel partners Flipkart, MakeMyTrip, Netflix to counter Jio

    MUMBAI: Indian global telecommunications company Bharti Airtel is teaming up with Flipkart, MakeMyTrip and Netflix to provide customised offers for its consumers, in a bid to compete with Reliance Jio.

    Reliance Jio, having experienced a huge growth over time, used the same strategy to attract customers. Airtel will also attempt to expand itself into a digital platform to attract more customers.

    According to a report by The Economic Times, the offer will be harboured under the #AirtelThanks privilege membership programme. Subscribers who contribute a monthly revenue of over Rs 100 on an average can enjoy the benefits of the offer. On the principle, higher the recharge, bigger the offer value.

    Flipkart will offer cash backs in the form of coupon recharges on buying a smartphone from the ecommerce platform.

    The idea is to make sure a subscriber stays with the firm. “We studied telcos across the globe including T Mobile and Telstra for this,” said Bharti Airtel CMO Vani Venkatesh.

    Speaking to ET, Jaideep Ghosh, partner at consultancy firm KPMG explained how Reliance Jio’s services have demanded other telcos to rise a step up further. Explaining that, he said, “In the currently competitive landscape, traditional sources of plain vanilla telecom services and data services are facing intense pressure and telcos need to branch out into other services, Carriers need to get into partnerships to achieve this, which is crucial to their future growth.”

    Concluding this, Sameer Batra, CEO – content and apps, at Bharti Airtel said, “The more you are invested in the brand, the higher differentiated products and more options thrown to you”.

  • Kranti Gada Wins the Prestigious Young Leaders Award at Business World Disrupt 40 under 40 Ceremony

    Kranti Gada Wins the Prestigious Young Leaders Award at Business World Disrupt 40 under 40 Ceremony

    MUMBAI: Kranti Gada, Chief Operating Officer at Shemaroo Entertainment Limited, has been recognised as one of the young leaders at the recently concluded BW (Business World) Disrupt 40 under 40 ceremony. This award emerged to be a clear acknowledgment of Kranti’s path breaking efforts towards introduction and implementation of the digital eco-system at Shemaroo Entertainment.

    Kranti’s successful journey with Shemaroo could be characterised as a spirited and innovative venture that has always kept the company ahead of the curve. She pioneered a new business outlook for Shemaroo by collaborating with new age media and bringing in revolutionary changes like tying up with telecom partners at a time when the industry was nascent. Under her guidance, the company’s USP of providing quality content was amplified over non-broadcast avenues like YouTube, DTH etc. Kranti Gada has been a visionary and a guiding light throughout her journey at Shemaroo.

    Speaking on the occasion, Anurag Batra, Chairman & Editor-in-chief, Business World, said, “Kranti represents the entrepreneurial energy of young professionals and leaders who are truly breaking the glass ceiling and creating role models for others to follow”.

    Commenting on the victory, Kranti Gada, Chief Operating Officer, Shemaroo Entertainment Limited, said, “It’s a true honour to be recognised for my efforts by a platform as prestigious as BW Disrupt 40 under 40, that scouts the innovative streak in businesses. Being a part of an ever- changing, fast-paced and dynamic industry like the entertainment industry, it is important to always have the constant support and involvement of the team. I thank my team for always being there and contributing to my personal growth and happiness.”

    BW Disrupt 40 under 40, organised by BW Disrupt is an exclusive platform for entrepreneurs that closely monitors Indian corporate ecosystem and analyses the Business & Economy. This time the jury panel was headed by Mr. T. V. Mohandas Pai, Chairman, Manipal Global Education.

  • Airtel 4G network now covers 15863 towns and villages across Assam

    Airtel 4G network now covers 15863 towns and villages across Assam

    MUMBAI: Bharti Airtel (“Airtel”), India’s leading telecommunications services provider, today said that its 4G network now covers over 15863 towns and villages in Assam, empowering customers with best-in-class high speed mobile broadband services.

    Airtel, which is the #1 operator in Assam with over 8.4 million customers, recently announced a massive network expansion drive to further scale up its high speed data services across the region.

    In addition, as part of its acquisition of Telenor’s India operations, Airtel has added 6 MHz of spectrum in 1800 MHz band to its portfolio in Assam. This will further boost 4G network capacity in the state, complement the rollout of new sites and fiber and enhance customer experience in the form of even better indoor and outdoor coverage.

    Raveendra Desai, CEO, Assam and North East, Bharti Airtel said, “To bring more and more customers onto the digital highway, we are committed to further expanding our 4G services across Assam. The availability of budget friendly smartphones is driving a massive uptake of 4G data and Airtel aims to be the 4G network of choice of customers in Assam with its superior data experience. Airtel’s affordable plans and packs offer access to exciting digital services like music, movies, LIVE TV on mobile and we invite customers to experience our 4G network.” 

    All Airtel 4G customers enjoy free access to Airtel TV that offers over 10,000 movies and TV shows plus 375 LIVE TV channels on the go. Airtel has also been consistently rated as the fastest network in India by global speed measurement leader – Ookla. 

    Airtel offers the widest bouquet of mobile services (4G/3G/2G) in Assam backed by a wide distribution channel of over 39 thousand retail outlets that serves customers even in deep rural pockets. Airtel’s network now covers 30,000 towns and villages representing approximately 94% of the state’s population.   

  • Reliance broadcast network limited on boards Abraham Thomas as company ceo

    Reliance broadcast network limited on boards Abraham Thomas as company ceo

    MUMBAI: Reliance Broadcast Network Limited, one of India's largest network has appointed Abraham Thomas as its Chief Executive Officer. As BIG FM looks at charting newer benchmarks with technology-led propositions, platform-agnostic content, incubating audio and video talent, branded content and original music led spikes on digital, the appointment of Abraham Thomas with his complementing ideologies will trigger a swift phase of growth. The industry veteran will leverage his deep insights into the multi-media platforms to drive and sustain the network's vision of being a leading platform-agnostic radio player.

    Abraham Thomas comes with more than two decades of experience and has a proven track record of propelling businesses across print, radio, TV and digital to newer heights in India, China and South Asia. Under his leadership, he has built robust organisations and added volume to the business inventories through high performing teams. A multi-faceted media professional turned entrepreneur with One Network Entertainment, he has previously worked with Radio City, RED FM, Indian Express, Sony, Astro Broadcast and MTV.

    He has always been extremely passionate about innovation in the audio entertainment space through various means such as content marketing, newer music formats and multi-platform approach.

    At BIG FM, he will take forward the mantle of driving meaningful partnerships, enhancing multi-platform reach, brand integrations, developing original content and music led programming and digital campaigns. As a media brand specialist, his association will strengthen the network's core functionality and leadership team with strategic alignment of goals across verticals.

    Speaking about his role at BIG FM, Abraham Thomas said, "Audio entertainment is ever evolving and players are bringing formats that are new and engaging to drive listenership and enhance advertiser relationships. BIG FM's programmatic and tech-driven developments paired with content marketing offerings by BIG Thwink, support the objective of pushing more original content and innovative brand integrated campaigns across platforms. In an evolving era where audiences are consuming audio content across multiple platforms, I am excited to join this evolving business and be a part of the successful transformation and growth that lies ahead.