Jio launch after spectrum integration with RCom, delay frustrates investors: Reports

A Citi Group report said that the excessive delay in Reliance Jio’s commercial 4G launch is frustrating investors, even as it said that the delay may be on the account of the company’s chase for perfection.

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The Citi Group, in a note, said that the ensuing delay could be testing investors’ patience. It raises concerns of Jio further eroding its first mover advantage. “The capital expenditure targets also continue to go up,” the report said.

“RIL (Reliance Industries Ltd) is leaving no stone unturned in ensuring Jio does not over-promise and under-deliver,” the report said.

The company recently said that it plans to increase the coverage to 90 percent (from 70 percent) before the Jio launch. The report however said that a 3-6 month delay in the recently announced core projects does not impact estimate earnings of the company materially, since a meaningful contribution is assumed to come only by FY18 reports Economic Times.

Reliance Jio now plans to fully integrate Reliance Communication’s 800 MHz spectrum before the Jio launch (making it the only player with sub-1GHz pan-India LTE spectrum. Bank of America Merrill Lynch, in a separate note, said that Jio can commercially launch fast mobile broadband services only after it has integrated RCom’s airwaves with its own 4G frequencies in the 2300 Mhz and 1800 Mhz bands to “ensure a better quality 4G network.

The firm, however, said that the spectrum integration exercise leading to a commercial launch could take nearly six months to conclude. Reliance Jio and RCom earlier signed multi-circle airwaves sharing and trading pacts in the 850 Mhz band to jointly offer 4G services across India.

The US brokerage had said that the spectrum integration can happen only after RCom has switched off its CDMA network and migrated such customers to different (4G) bands.

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70 Comments on "Jio launch after spectrum integration with RCom, delay frustrates investors: Reports"

 

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kumar
May 6, 2016 1:12 pm 1:12 PM

Jio can not compel anybody to buy LYF mobile bundled with sim card just by sending invite through its employee to 10 people.
it is our wish which mobile we should but or no.
if this is the case, we should boycott it.
What about sale of MIFI ?

Goutham
May 5, 2016 2:12 pm 2:12 PM

Jio 4g launched by invitie is it?? Process to get sim only??

MS
May 6, 2016 1:25 pm 1:25 PM

You will need an invite froma RIL employee and will have to buy a LYF handset being sold by Reliance Digital.

RIL group firm employee can invite 10 people to buy Jio’s 4G SIM and LYF handset.
The connection will come bundled with unlimited 4G mobile internet and phone calls service for 90 days.
The invitee will need to pay Rs 200 to activate services.
It will also grant users free unlimited access to Jio’s 4G mobile applications like Jio Play, Jio On-demand, JioMag, JioBeats, Jio Drive etc for 90 days.

Sunny
May 6, 2016 3:55 pm 3:55 PM

Pay Rs.200 to activate services? Who told you that? There are no charges for activation under this offer. If any franchisee is asking for money, you can forward their details to [email protected] dot com and they’ll fix that franchisee.

Arghya Chatterjee
May 4, 2016 1:01 pm 1:01 PM

Jiyo is going to be a single network company (only 4G and no fallback to 3G or 2G). So, it requires at least 90% geographical coverage to launch its service. And I think, it has not entered into roaming partnership with other companies (I get Idea n/w where Voda is absent!), so it is taking time to launch.

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