Business Today
Loading...

Reliance Jio will not lose money, says Mukesh Ambani

Mukesh Ambani suggested that Jio has an 'unlimited' potential in the world of technology and Jio's future is linked to India's digital ambition of being among the top countries in broadband and internet access.

BT Online | September 8, 2016 | Updated 17:12 IST
Reliance Jio will not lose money, says Mukesh Amabani

Mukesh Ambani, Chairman, Reliance Industries may not 'make a killing' out of his new telecom venture, Reliance Jio, but he is sure it will not end up in losses. 

In an interview with The Economic Times, Ambani expressed confidence in the company's new venture. 

"I can assure that we are not going to lose money. We are not looking to make a killing, but we are looking to make a high-teens return on our capital, which is 18-19 per cent return on our capital, over the investment period," Ambani said in an interview with ET.

He also suggested that Jio has an 'unlimited' potential in the world of technology and Jio's future is linked to India's digital ambition of being among the top countries in broadband and internet access.

ALSO READ:iPhone 7/iPhone 7 Plus: Why Apple got many people disappointed

He mentioned that investors in the company understand that Reliance has phases of big investments followed by a period of steady returns.

Ambani made Reliance Jio's big announcements of free voice calls and cheap data service last week at the company's annual general meeting in Mumbai.

Reliance Jio's postpaid plans start at Rs 149 unlike prepaid, which start at Rs 19. Voice calls for Reliance Jio customers are not chargeable. Jio users are also not required to pay roaming charges. And, Reliance Jio's  preview offer is free between September 5 and December 31 2016.

Reliance Jio's entry is expected to affect the earnings of incumbent telecos. Bharti Airtel's revenue growth in India may halve over the next two fiscals, due to Reliance Jio's disruptive entry into the telecom market, S&P Global Ratings said on Monday.


Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close