Sunday, 12 August 2018

Path To Success - Reliance Jio Business Updates



1. Jio has built a next generation all-IP data network with latest 4G LTE technology. It is the only network built as a Mobile Video Network and for providing Voice over LTE technology. It has built a future ready network which can easily deploy 5G and beyond technology in the last leg. Jio has created an eco-system comprising network, devices, applications and content, service experience and affordable tariffs for everyone to live the Jio Digital Life.

2. Jio has created a strong data network with infrastructure and backhaul for offering wireless services, wire line services, FTTH, Enterprise offering, IOT services and other digital services. These will lead to sustained growth in data consumption on the network.

3. Jio continues to be the most popular wireless broadband service provider in the country with its subscriber base increasing from 186.6 million as of 31-March-2018 to 215.3 million as of 30-June-2018. Net subscriber addition for the Company during the past twelve months has been 92 million, which was the highest in the industry by a substantial margin. Jio continues to have India’s largest wireless data subscriber base, with the gap widening from the other operators. The growth in subscriber base is getting further accelerated with JioPhone and attractive post-paid offerings.

4. The engagement metrics of the Jio subscribers is also the highest in the industry in India and among the highest globally as well. Average data consumption at 10.6 GB per user per month, average voice consumption at 744 minutes per user per month and average video consumption at 15.4 hours per user per month make Jio the leader in the industry across all of these service offerings. Average data consumption has grown substantially in this quarter, primarily driven by video consumption.

5. The company announced its JioGigaFiber services for Homes and Enterprise at the 41st AGM (post IPO) of RIL held on 5th July 2018. These services are being offered across 1,100 cities using Jio’s strong fibre backbone across the country integrated with nextgen network and platforms. Customers can register their interests starting 15th August 2018 upon which homes would be connected based on the requests received from the neighborhood. During the ongoing beta trials, thousands of homes have been connected to ensure gold standard service post launch.

6. Jio also launched the ‘Monsoon Hungama’ offer for JioPhone with upfront security deposit of only 501 for a new JioPhone (offered by Reliance Retail), effective 21st July 2018. The offer works in conjunction with return of an old feature phone. Also, JioPhone 2, which offers a larger screen and full QWERTY keyboard for a price of 2,999 has also been announced. JioPhone 2 would be available starting 15th August 2018. Most used social media applications like YouTube, Facebook and Whatsapp would also be available for Jio Phone users starting 15th August 2018.

7. Jio’s end-to-end all IP network is the most differentiated network with functionalities
such as SDN and NFV. It has been consistently rated as the fastest network in India by TRAI’s MySpeed application over the last 18 months with an average download speed of 18.6 Mbps during June 2018, which was almost twice the network speed available on any other network. Jio has also been consistently rated to have the widest LTE coverage in the country.

8. During the quarter, Jio launched the Zero-Touch Post-paid plan at 199/ month offering  a) unlimited voice and SMS, b) 25GB 4G data, c) pre-activated ISD calling starting at 50p/min, and d) one-click activation of international roaming at attractive rates (starting from 2/ min for voice, 2/ MB for data, 2/ SMS) without any upfront security deposit.

9. Jio’s simplified and innovative tariff plans enable its prepaid customers to have unrestricted access of Jio Digital Life. During the last quarter, Jio offered various schemes to its prepaid customers including Jio Cricket Gold Pass, Double Dhamaka for limited period, attractive cash backs on digital recharges, etc.

10. During the quarter, RIL announced a strategic transaction for acquiring Radisys, a global leader in providing open telecom solutions to service providers and telecom equipment vendors worldwide, for US$1.72 per share in cash. This acquisition would further accelerate Jio’s global innovation and technology leadership in the areas of 5G, IOT and open source architecture adoption.

HIGHLIGHTS OF FINANCIAL PERFORMANCE (Q1-2018)
  • Standalone revenue from operations of 8,109 crore (13.8% QoQ growth)
  • Standalone EBITDA of 3,147 crore (16.8% QoQ growth) and EBITDA margin of 38.8%
  • Standalone Net Profit of 612 crore
  • Subscriber base as on 30th June-18 of 215.3 million
  • Lowest churn in the industry at 0.30% per month
  • ARPU during the quarter of 134.5/ subscriber per month
  • Total wireless data traffic during the quarter of 642 crore GB
  • Total voice traffic during the quarter of 44,871 crore minutes

 Note: All this information has been sourced from press releases of Reliance Jio Company.

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