Analysts cautious on outlook, expect earnings to remain under pressure over medium term
RIL chairman said Jio is a creation of young, by the young, and for the young
Ambani said that the overall business has nearly tripled in the last five years
Profitability of existing operators may be impacted due to these plans
Ambani said that the launch will transform India from a high priced data market to having the lowest data rates anywhere in the world
Jio will compete head on with players like Bharti Airtel and Vodafone and will offer users data services free for four months
RIL, Bharti Airtel, Idea Cellular and RCom have collectively lost Rs 22,522 crore of m-cap in single day.
According to a latest study by Analysys Mason, telecom companies won't actually lose out by lowering tariffs
Idea Cellular dipped 10% to Rs 83.70, Bharti Airtel down 9% to Rs 302 and RCom by 5.3% at Rs 51 on the BSE.
In his AGM speech, Mukesh Ambani said that incumbent operators were deliberately dropping calls from Jio's network
Voice calls to be free, may force the incumbents to lower voice charges, affecting their margins
Mukesh Ambani offered customers free data services for 4 months, starting Sep 5 to Dec 31
He was speaking at the company's annual general meeting in Mumbai
According to analysts, Jio's aim of getting large number of subscribers on to its network could face technological challenges
Long queues outside Reliance Digital Stores tell the story of India's pent-up demand for data services. As Mukesh Ambani's telecom venture, Reliance Jio Infocomm, readies for a full-blown commercial launch later this year, the company has made its preview offer available to all fourth-generation handset owners with promises to deliver free voice and data for three months.The internet is flooded with images of customers queuing to get their free SIM cards.The chairman of Reliance Industries, Mukesh Ambani, is going to address shareholders on September 1, where he is expected to share details of Jio's trial preview. Customers lined up for the 4G SIM in one of the outlets in Mumbai (pictured).
Under the offer, customers will have unlimited access to Jio services for 90 days from the day of activation of Jio SIM
Jio's 4G-LTE services include unlimited HD Voice and video calls, unlimited SMS, and unlimited high-speed data
Under the offer, Jio offers free internet data and voice calls for 90 days
Jio said it would place on record its protest against the "gross and serious acts of breach of trust, fraudulent conduct and gross misrepresentation of facts with wilful and deliberate intent to malign and damage" its interests
Also, data traffic generated by such 'so called beta tests' is rivaling combined traffic other operators present for 15-20 years