Reliance Jio 4G launch: Mukesh Ambani began the 42nd AGM of Reliance Industries by talking about his plans for the launch of Reliance Jio. “Jio means to live and to be alive to very opportunity. World’s demand for digital oxygen, that is data, is growing exponentially. Jio aims to fulfill this need of Indians. Access to information will now know no barriers,” he said.
“It is only appropriate that we the launch of Jio in front of our shareholders. Thank you for your support. It gives me great pleasure to welcome you all. I start with the newest and the youngest member of the Reliance family, Jio…Our Prime Minister Narendra Modi’s vision for Digital India is a life changing moment. Jio is a dedication to that Digital India dream of the Prime Minister, his vision for the 1.2 billion people of India,” Ambani said.
“Why did we call our venture Jio? Why is our motto Jio Digital Life? The world is at the beginning of a digital revolution. Anything and everything that can go digital is going digital exponentially. Life is going digital,” Ambani said. He went on to add, “In the next 20 years, we will collectively achieve more than what have been achieve in the last 300 years. In this eta if you are not digital, you simply will not survive. You will be left behind, and you will be irrelevant. India and Indians cannot afford to be left behind. Jio is conceived to change the ranking in mobile reach for India. India will go among the top ten in the world, right now it is in the 150s.”
Reliance Jio, even before its full scale launch, has sent jitters in the telecom industry, with incumbents like Bharti Airtel, Vodafone and Idea Cellular aggressively offering freebies and discounts to woo new customers and retain existing ones. Brokerages have noted that Airtel, Vodafone and Idea have cut tariff and bundled free calls with data to drive mass market adoption. UBS is of the view that the entry of Reliance Jio will further accelerate data adoption and 4G handsets and data tariffs are likely to become more affordable.
Meanwhile, Morgan Stanley remains bullish on Reliance Industries, especially on the back of the Reliance Jio launch. It expects Reliance Jio’s subscriber base to go up to 40 million in the next financial year. Morgan Stanley hopes that the growth in subscriber numbers will add around $2 billion revenues to Reliance’s kitty. It expects the average revenue per user to be around Rs 300. The merchant banker has said all eyes are now on the commercial launch of Jio 4G services.