Reliance Jio Infocomm is a grand experiment in extreme capitalism; an experiment where a company, backed by the balance sheet and cash flow strength of the parent’s Oil & Gas business, has unleashed what we call brute force of capital with business strategy which can draw parallels with the operations in Silicon Valley.
Jio’s disruption in the 4G LTE Space has caused #2 (Vodafone) and #3 (Idea) players to consider and announce a merger (in-principle agreement announced; not consummated yet) we do Continue reading Jio Heat Wave too intense for Vodafone + Idea – Is TRAI Biased ?
Bharti Airtel’s Sr. Management Team has finally woken up to the challenge posed by a $10 Bn startup called Reliance Jio Infocomm. Under the vision of Mukesh Ambani, Reliance Jio started as a Greenfield Telecom operator and has rolled out enviable Infrastructure if we believe in this presentation of Mr. Tareq Amin. A must watch if you are in the Telecom Sector to get a glimpse of what Jio will unveil 27 days from now 🙂
Key features of Airtel’s Project Leap are as follows, Continue reading Airtel Wakes up to Reliance Jio’s Challenge – Announces Project Leap
The great Indian Telecom M&A is finally unfolding. Before we go into the Indian Telecom M&A, I’d like to elaborate about a great Chairman Hindustan Unilever [then Hindustan Lever Ltd] had in the 1990s – S M Datta. That was precisely the time when my tryst with Equity Markets had began even though I was still in High School. I was an avid reader of Business Today & Business India and was deeply influenced by HLL Chiarman Mr. Datta. During his tenure he masterminded the M&A for all the companies Lever Brothers wanted to takeover in India using HLL. Mr. Datta got Brooke Bond India & Lipton India merged separately and finally HLL tookover the combined entity, totally 6 during his tenure and also laid down the future roadmap for Levers in India. Drawing parallel, I’m wondering if Mukesh Ambani wants to do the same in Telecommunications ? Let Reliance Communications takeover MTS Sistema. Meanwhile RJio will takeover Videocon Telecom at some point as I have already elaborated about their spectrum synergy. Later RJio takes over RCom and all the companies will hive off their Telecom Infrastructure assets creating a giant Telecom Services & Infrastructure company. I can’t be sure of RCom & RJio merger in future but corporate moves by Anil Ambani point in that direction – Anil gets into Finance, Power, Defence & Infrastructure exiting Telecom where he hasn’t been able to carve a niche for himself despite driving the business for a decade. Mukesh & Akash Ambani’s Big Plans for Reliance Jio Infocomm are extensively covered here. Continue reading MTS Sistema Merger with Reliance Communications – Mukesh Ambani Master Stroke or 4G LTE Play ?
As expected by us, Reliance Jio Infocomm Ltd [RJIL] has entered the Bidding Fray for Telecom Spectrum in 900/1800MHz along with 7 other operators of which Aircel, Uninor and Tata DoCoMo were surprise entrants. Mukesh Ambani’s Reliance Jio made the initial mistake of bidding for in-efficient 2300MHz spectrum in 2010 hoping 4G Data Take Off by 2014. However, with spectrum prices lower and industry conditions (including tariffs) better than 2012, RJIL now seems keen to acquire additional spectrum. The immediate impact is that of intense competition in auctions. Continue reading Demystifying the Reliance Jio Infocomm Mobile / Data Services Enigma
The management of Airtel in an Analyst call told that 2G Voice prices are still trending up and there is potential for a 10-20% increase from current levels. In 3Q, there has been a slight increase as per management, with okay volumes. Continue reading Airtel Data ARPU at Rs 70 – Reliance Jio Infocomm Deal at Market Prices – MoU for 4G Collaboration
With the new NIA for Spectrum Auction it is evident that renewal of Telecom Spectrum for existing licensees is out of question and Auction is the only way forward. We all know that Reliance Jio Infocomm Ltd [RJIL has ambitious plans. However, RJIL is locked in the inefficient 2300MHz PAN India 4G LTE Spectrum, which faces serious viability challenges, and for a credible Long Term telecom strategy, RJIL would need to expand into smartphone-driven Voice & Data. Among the various bands to be auctioned in coming years [700, 800, 900, 1800, 2100]. RJIL’s best chance could well be to employ 900Mhz for 2G Voice and 3G Data along with 2300Mhz for 4G LTE. Continue reading How 900Mhz Spectrum Auction will Give Reliance Jio Infocomm PAN India 2G Voice + 3G Footprint ?