21-Nov-2017
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Mukesh Ambani’s message for Jio rivals; his views on Aadhaar, digital payments

October 31, 2017: NEW DELHI: Reliance Industries' telecom arm Jio controlled by the country's richest man Mukesh Ambani has always been a matter of concern for its rivals in the sector.

From a range of discounts to the launch of "effectively free" entry-level 4G handset, Jio has always surprised the incumbent players by its actions.

After a long run in the dark, the telecom stocks last week breathed a sigh of relief when the newest entrant announced a hike in mobile data tarriffs.

 

Launched in September last year, Jio has said that it will turn profitable "shortly". In a recent speech at an award function, Ambani lauded the government's initiative towards digital payments and signalled a soft stance for its rivals in the market.

 

He said, "The prime minister's vision is backed up by the concrete action in terms of open, transparent and fair policies where even some ragging by incumbents is tolerable and fun and we can still be friends."

Ambani also praised the Aadhaar programme and added, "It is also path breaking in terms of not giving up on technology.

What we have done with Aadhaar, what we have done with digital payments and UPI are among the first in the world. It's time for India not to follow but to be pioneers."


Jio racked up Rs 6,147 crore ($947 million) of revenues in the three months to September 30, though made a loss of Rs 271 crore.

Although, the company's head of strategy, Anshuman Thakur, said that Reliance will continue to spend around Rs 7,000 crore a quarter on Jio for the next few quarters. Reliance has poured more than $30 billion into Jio so far.

Earlier this month, it also launched a guaranteed buyback offer for Jio customers buying Apple Inc's latest iPhones.

 


(With Reuters inputs)