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Tag: JioGigaFiber

  • Jio PAT at Rs 891 cr; FTTH beta trails encouraging

    Jio PAT at Rs 891 cr; FTTH beta trails encouraging

    BENGALURU:  Mukesh Dhirubhai Ambani’s largest startup company in the world – Reliance Jio Infocomm Limited (Jio) reported 6.1 percent growth in standalone profit after taxes (PAT) at Rs 891 crore for the quarter ended 30 June 2019 (Q1 2020, quarter or period under review) as compared to the Rs 840 crore in the immediate trailing quarter (q-o-q) or Q4 2019. Standalone EBITDA for the period under review increased 8.2 percent q-o-q to Rs 4,686 crore (40.1 percent margin) as compared to Rs 4,329 crore (39 percent margin).

    The result of the quarter ended 30 June 2019 are not comparable with the corresponding figures for the previous period to the extent of the demerger of the Optic Fibre Cable Undertaking and transfer of Tower Infrastructure Undertaking of the Company pursuant to Composite Scheme of Arrangement with appointed date as 31 March 2019. The company says that the numbers for the year ago quarter are not comparable with the quarter under review and have been regrouped wherever necessary. Hence this report looks at the q-o-q comparison.

    Jio says in an earnings release that ongoing beta trials of JioGigaFiber services is in its final stages, and early signs have been very encouraging.

    FTTH Enterprise services are also being rolled out gradually reveals the company further.

    Reliance Industries Limited Ambani, chairman and managing director,

    said: “Growth in Jio mobility services has continued to surpass all expectations. In less than two years of commercial operations, Jio network carried almost 11 Exabytes of data traffic during the recently concluded fiscal quarter. Jio management is focused on giving unmatched digital experience at most affordable price to every citizen of the country, and accordingly expanding the network capacity and coverage to keep pace with demand. Jio has started connecting Enterprises with its next-gen connectivity solutions on the back of its extensive fiber network across the country. Beta trials of JioGigaFiber services have been very successful and the entire bouquet of smart home solutions would soon be rolled out to targeted 50 million households and beyond. Jio is committed to power the Digital Revolution in India through its technology platforms across communication, entertainment, commerce, financial services, education, healthcare, agriculture and beyond.”

    Jio reported 5.2 percent q-o-q growth in standalone operating revenue at Rs 11,679 crore for Q1 2020 as compared to Rs 11,106 crore in Q4 2019. The company says that its subscriber base as on 30th June 2019  was 33.13 crore (331.3 million, 3,313 lakh). It claims lowest churn in the industry at 0.97 percent per month. Jio says that ARPU during the quarter was Rs 122.0 per subscriber per month. It says that total wireless data traffic during the quarter was1,090 crore GB and total voice traffic during the quarter was 78,597 crore minutes.

    Let us look at the other numbers reported by Jio

    Total expenses for Q1 2020 grew 5.2 percent q-o-q to Rs 10,326 crore from Rs  9,818 crore. Network operating expenses in Q1 2020 grew 12.6 percent q-o-q to Rs 3,824 crore from Rs 3,401 crore. Access charges (Net) declined 22.6 percent to Rs 851 crore in the period under review from Rs 1,099 crore. License Fees/Spectrum charges increased 9.1 percent q-o-q to Rs 1,287 crore from Rs 1,180 crore. Employee benefits expense for the period declined 14.4 percent q-o-q to Rs 392 crore from Rs 458 crore. Net Finance charges for Q1 2020 increased 28.3 percent q-o-q to Rs 1,660 crore from Rs 1,294 crore. Selling and distribution expenses for the quarter increased 4.9 percent q-o-q to Rs 345 crore from Rs 329 crore. Other expenses declined 1 percent q-o-q to Rs 310 crore from Rs 313 crore.

  • Reliance Jio adds 27.9 mn subs in Q3; GigaFiber marks entry in 1400 cities

    Reliance Jio adds 27.9 mn subs in Q3; GigaFiber marks entry in 1400 cities

    BENGALURU: Mukesh Dhirubhai Ambani’s juggernaut Reliance Industries Ltd (RIL) reported 50.7 percent growth in gross revenue for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter. The company’s operating result was 25.4 percent higher during the quarter under review as compared to the year ago quarter. Organised retail under Reliance Retail Ltd and Digital Services segment under Jio have been adding a larger and larger share to the company’s topline and operating results over time. 

    Q3-2019 was no different. Revenue for RIL’s Reliance Retail almost doubled (grew 89.3 percent) y-o-y in Q3 2019 to Rs 35,577 crore (16.7 percent of gross revenue) as compared to Rs 18,798 crore (13.3 percent of gross revenue) in Q3 2018. The segment’s operating result grew 210.5 percent y-o-y to Rs 1,512 crore (0.71 percent of gross revenue) during the period under review from Rs 487 crore (0.34 percent of gross revenue). The segment’s contribution to operating results grew to 8.7 percent in Q3 2019 from 3.5 percent in Q3 2018.

    RIL’s digital segment revenue in Q3 2019 grew 51.2 percent y-o-y to Rs 12,302 crore (5.8 percent of gross revenue) from Rs 8,136 crore (5.8 percent of gross revenue). Operating results for the digital segment grew 64 percent y-o-y to Rs 2,362 crore (1.1 percent of gross revenue) in Q3 2019 from Rs 1,440 crore. (1 percent of gross revenue). The segment’s contribution to operating results grew to 13.6 percent in Q3 2019 from 10.4 percent in Q3 2018.

    RIL reported gross revenue of Rs 2,12,752 crore for Q3 2019 as compared to Rs 1,41,182 crore for the corresponding year ago quarter. Operating result for the period under review was Rs 17,341 crore as compared to Rs 13,830 crore for Q3 2018. The company reported profit for the period as Rs 10,376 crore which was 10 percent higher as compared to Rs 9,437 crore in Q3 2018. Total Comprehensive income for Q3 2019 was 28.8 percent higher y-o-y at Rs 11,052 crore as compared to Rs 8,582 crore.

    FTTH JioGigaFiber services, Den Networks and Hathway Cable & Datacom Investments

    In its earnings release, RIL said that JioGigaFiber services for home broadband, entertainment, smart home solutions, wireline and enterprise has witnessed overwhelming customer interest across 1,400 cities. Trial services are being rolled out across several cities to optimise service offerings.

    The company said that Jio’s customer engagement stayed healthy with average data consumption per user per month of 10.8 GB and average voice consumption of 794 minutes per user per month. Video consumption drove most of the usage, increasing to 460 crore hours per month.

    RIL said further that it awaits regulatory approvals to complete the recently announced investment in Den Networks Ltd and Hathway Cable and Datacom Ltd. Post completion of the transaction, Reliance and Jio will be strengthening the business model of 27,000 LCOs that are aligned with DEN and Hathway across 750 cities, by creating multiple future opportunities with new services and platforms.

    RIL says that Jio added 2.79 crore subscribers in Q3 2019 and its net subscriber base grew to 28 crore. The company says that Jio has had the lowest monthly churn in the industry of 0.61 percent during the quarter. Jio’s ARPU for Q3 2019 was Rs 130 as compared to Rs 131.70 in the immediate trailing quarter.

    Company speak

    RIL chairman and managing director Ambani said, “In our endeavour to consistently create more value for our country and stakeholders, our company has become the first Indian private sector corporate to cross Rs 10,000

    crore quarterly profits milestone. I am proud to be part of the committed and talented team at Reliance that has helped achieve many milestones in our continuing growth journey.

    “In an oil price environment that witnessed heightened volatility through the quarter, RIL has delivered strong quarterly results on a consolidated basis. Competitive cost positions and integration benefits is core to our oil to chemicals (refining and petrochemicals) business, driving sustained performance even in challenging global business environment. In our new-age consumer businesses, we maintained robust growth momentum across Retail and Jio platforms and the share of consumer businesses is steadily increasing its contribution to the overall profitability of the Company. In our wireless business, our customer-centric offerings and strong ubiquitous network are helping to digitalise India at an unprecedented rate. As we execute on our strategies to deliver superior products and services to Indian consumers, I am confident, Reliance is well-positioned for the future and for the next cycle of growth,” concluded Ambani.

  • Dish TV aims to launch OTT service, hybrid box this quarter

    Dish TV aims to launch OTT service, hybrid box this quarter

    MUMBAI: It may be the oldest player but it's mind is as young as you can imagine. With The JioGigaFiber launch, cable and DTH operators are moderating their offerings, distribution strategy as much as possible. Dish TV, the largest DTH player in India is about to offer OTT service and Hybrid box soon. The new OTT offering will be a fair mix of linear TV channels, catch up content along with original content.

    “The consumer will have the best of both the worlds getting connected with the Hybrid box and the DTH platform at the same time keeping the cost low and giving excellent value for money,” Dish TV group CEO Anil Dua said in an earnings call after posting Q2 results. He is also optimistic that these innovations will ensure that existing customers are not looking beyond Dish TV.

    Dua also said the company is planning to launch the offerings in this quarter only. After the beta phase which is starting soon, it will get into a quick national launch. While he was questioned if it will tie-up with any OTT player for the launch, he made it clear that Dish TV will not be playing as an aggregator. There may be an app-in-app integration later.

    “It is around Rs 35 crore on the CAPEX and networking equipment by startup cost and other cost still launched and thereafter it will be very marginal cost purchase of small content items which will be reflected in the content cost,” Dish TV CFO Rajeev Dalmia commented on the expenditure for the OTT Platform.

    Although Dish TV has certain plans for partnering with broadband players, till now it has not revealed much. On the other hand, Jio is already getting ready for its bundled service of cable, internet, VoIP especially after the acquisition of stakes in Hathway and Den Networks. There are high chances that customers will tend to pay for a consolidated bill over having three different services.

    This has been seen as a tough challenge for DTH players. However, Dua feels it is good for cable and broadband industry. As ARPUs have been low in respective industries, the new development may pave the way for higher ARPUs helping the entire pay-TV space. “In terms of the competitive price offering etc., in short-term, there could be prices which are lower but I think this company has been observed to match that but in long-term the prices have to rise,” he added further.

    On the question ofsubsidising OTT or Hybrid boxes, Dish TV is looking at all opportunities that OTT presents. “We will definitely use it as a tool for our existing subscriber so that they don’t kind of look here and there, they have everything available with their Dish TV brand on their platform, but certainly we believe that we are making a good product and it can become an attraction tool as well,” Dua commented.

    Dish TV chairman and managing director Jawahar Goel mentioned 4 million boxes are already in the market which are Hybrid-ready. The plan is to convert those into connected boxes in this quarter. Hence, hybridisation of existing boxes is also going to be another opportunity to build the business as well as a new subsidy.

    As the parent company has an OTT platform which is gaining more users, the question arises about the justification of another platform from the group.

    “Our OTT is meant for more from point of view for subscriber, so we are looking at typically short form kind of content which is different from what the other OTT players are looking at. So we feel that these are absolutely tailor-made for our respective audiences,” Dalmia said.

  • Mukesh Ambani promises market disruption with JioGigaFiber

    Mukesh Ambani promises market disruption with JioGigaFiber

    MUMBAI: Mukesh Ambani today gave a clarion call to competitors saying that Reliance GigaFiber will bring about the same revolution in fixed line broadband as Reliance Jio had done with mobile data consumption making India the biggest mobile data consumers in the world.

    Speaking at the India Mobile Congress being held in New Delhi today, Ambani said, “Jio is committed to building a deep-fibre network across the country and ensuring that every premise is connected with the highest quality network. All of us are proud that India has become the world’s largest mobile data consuming nation. We now have a similar opportunity to replicate this success in fixed broadband as well.”

    When Reliance Industries announced the launch of JioGigaFiber, it was revealed the project would be rolled out in the shortest possible time. Additionally, RIL has acquired 58.92 per cent stake in Den Networks and 51.34 per cent in Hathway Cable and Datacom Limited, both MSOs.

    “From day one JioGigaFiber will offer complete fixed-mobile convergence where Indians will travel seamlessly between mobile and fixed broadband network 4G and 5G when on the move and Wi-Fi when indoors,” Ambani added.

    In the last two years, the Indian telecom sector has gone through a revolutionary change. In less than two years, India has moved from 155th rank in mobile broadband penetration to the top position. Now after 2G to 4g transformation, India is on the verge of experiencing 5G soon.

    “By 2020, I believe that India will be a fully-4G country… and ready for 5G ahead of others. Every phone in India will be a 4G enabled phone and every customer will have access to 4G connectivity,” he said.

    He also mentioned that digital connectivity can transform rural India comprehensively. According to statistics shared by him, as many as 50 million villagers have got affordable smartphones in the last eight months. Moreover, for many of them, this is the first radio and music player, TV, camera internet.

    “This combination of connectivity with affordability is unparalleled in the world. I would like to acknowledge the contribution of the government’s BharatNet program in providing high-quality connectivity in some of the remotest areas of our country. This transformation will accelerate as we get ready for a 5G world driven by the pro-active approach of the government,” he added.

    The highly optimistic man thinks digital technologies like artificial intelligence, robotics, blockchain, internet of things, virtual reality and augmented reality will propel the entire economy of the country along with the fourth industrial revolution.

  • Apex Court permits Reliance Communication to sell its assets to Reliance Jio

    Apex Court permits Reliance Communication to sell its assets to Reliance Jio

    MUMBAI: The Apex court had recently permitted Reliance Communications Ltd to sell its assets to Reliance Jio Infocomm Ltd.  On Friday, the Supreme Court cleared a settlement between RCom and the Indian unit of Swedish telecom equipment maker Ericsson AB, making it easier for the sale of the telecom operator’s assets.

    According to a report on Mint, the judgement regarding the sale of assets was delivered by a two-judge bench headed by justice R.F. Nariman. The bench directed Reliance Communications to pay Rs 550 crore to Ericsson by 1 October and asked RCom chairman Anil Ambani to give an undertaking to this effect. On 1 October, the apex court will also hear RCom’s plea to close the insolvency case. Bloomberg reports that Ericsson has objected to the settlement terms of the insolvency case.

    The report further notes that that the sale of RCom’s assets will reduce the lenders’ exposure by 50 per cent and it owes about Rs 42,000 crore to its lenders. As part of the deal, Reliance Jio will get 122.4 MHz of 4G spectrum in the 800/900/1800/2100 MHz bands. It will also get 43,000 towers and 1,78,000 RKM (route km) of fiber and 248 media convergence nodes that will cover five million square feet.

    Earlier in 2014, Ericsson had signed a seven-year deal with RCom to operate and manage its nationwide telecom network. The Indian unit Swedish telecom operator has stated that it has not been paid over Rs 1,000 crore. Earlier It has claimed outstanding dues of Rs 16,000 crore but settled for Rs 550 crore. The sale of Reliance Communications’ telecom assets to Reliance Jio is pegged at Rs 25,000 crore and the sale is expected to complete within the next three weeks.

    At the end of the deal, Reliance Jio will get more telecom assets to expand its wired and wireless business in the country. It will mainly help with Jio’s impending commercial availability of Reliance Jio GigaFiber service.