Reliance Jio Infocomm’s network service which will soon be activated in the coming months is expected to perform
substantially well in the upcoming years. Reliance Infocomm, has for a long time been making preparations to ensure Jio’s
uninterrupted operation in the market. The company, an arm of Mukesh Ambani owned Reliance Industries had even conducted a
pilot project to test their network model.
Bright future ahead for Reliance Jio Infocomm
Trade analysts have had positive predictions for the company with regard to subscription and subsequent financial
turnover. They have estimated that Reliance Jio Infocomm is expected to see an increase in subscription rate once services
are available. About 30 million customers are expected to have subscription by the end of financial year 2017 and around
60 million customers in the financial year 2018. The company will thus, succeed in generating an impressive revenue of 1
billion dollars in the financial year 2017. This news is confirmed according to a report by Morgan Stanley on the
25th April 2016. The telecom company will soon launch its 4G-enhanced phones within a period of three to nine months, as
stated by analysts Amruta Pabalkar, Rakesh Sethia and Vinay Jaising.
In addition to this, the company has also been the driving force behind
LYF mobile; the latest entrant into the mobile handset market in India. With many innovative
features and by offering a
smartphone under 15000, LYF is another area where an RIL-owned entity could
make quite an entrance.
Services tested before commercial launch
Reliance Jio had accommodated its associates, business partners and employees to be a part of this trial. The results
proved to be encouraging for the telecom brand. Reliance Founder’s day marked the launch of its trial network services.
About 80,000 employees were a part of the test launch. Considering the positive response that its services garnered, the
company intends to make them available in this year itself.
Apart from the core services on JIO SIM Cards, the company also might look to sell bundles of LYF smartphones and JIO SIM
cards. Many LYF phones such as the
LYF WATER 1 have already been out in the market for over three months and have been received favorably.
By ensuring that both, the service, delivery and core handset areas are tested comprehensively before launch, Jio is
looking to tie up loose ends so that customers after launch do not face any hassles.
Collaboration with Reliance Communications
Earlier this January, Reliance Infocomm also went on to sign an agreement with Anil Ambani owned Reliance Communications.
The deal received approval from the department of telecommunications and it is being viewedas a way of enhancing Jio’s 4G
network services. The deal also received approval from the department of telecommunications. The two companies plan on
doing this by sharing a common spectrum. This spectrum-sharing is expected to happen over nine circles which include Uttar
Pradesh, Mumbai, Orissa, Madhya Pradesh, Bihar, Himachal Pradesh, Haryana, Assam and the north-east. This spectrum will be
fully enabled in the coming weeks.
Investments underway to enhance telecom network
Reliance Infocomm also plans to invest a large amount, approximately 30,000 crore, in telecom network layout. Installing
an additional 30,000 RKm (route kilometer) fiber network, 10,000 towers and double the small cells are on the company’s
agenda. This investment is massive, considering the company had already made a large-scale investment of 1.2 trillion in
the financial year 2016.
Reliance Infocomm Jio already has an existing fiber network comprising 270,000 RKm , 90,000 cell towers and 50,000 small
cells, to support its network services. Laying out additional network fibers and integrating a spectrum with Reliance
Communications are ways of enhancing the existing network.
Summary
Reliance Jio will launch 4G network smart phones by the end of financial year 2016; with an expected subscription of 30
million customers.