Reliance Jio, billionaire Mukesh Ambani's telecom venture, may soon get another Rs 60,000 crore to beef up its war chest as it plans to launch its broadband services. It seems that Jio, after disrupting the mobile tariffs market, is betting big on its optic fiber business.
According to Livemint, Reliance Industries (RIL) is likely to invest Rs 60,000 crore into its telecom unit this fiscal year. In addition to this, unit Reliance Jio Infocomm Ltd may also borrow as much as Rs 1 lakh crore, the report said. In 2016, Mukesh Ambani had said that investment in the telecom startup Jio would be around Rs 2,50,000 crore.
JioFiber, the wired broadband offering of Reliance Jio, has already been rolled out in select markets across the country. Jio plans to introduce broadband services to most Indian cities in the second half of the year. It currently offers fibre-to-the-home (FTTH) broadband connections with 1.1TB (terabytes) of free data at a speed of 100 mbps.
Unlike a regular broadband connection where the fiber reaches only till the building and the last few meters of end connectivity are connected using traditional cable which reduces the speed, JioFiber connectivity comes directly to your home.
Currently, Jio charges a security deposit of Rs 4500 for the ONT device (GigaHub Home Gateway). The deposit will be refunded if you choose to discontinue using the JioFiber services. Reliance Jio is offering its JioFibre service in select cities including Delhi-NCR, Mumbai, Ahmedabad, Surat, Vadodara and Chennai among others.
Reliance Jio is also planning to hire 75,000-80,000 employees for this financial year. This recruitment is part of their expansion process. "About 1,57,000 people are on the rolls today. I will say another 75,000 to 80,000 people," Jio's Chief Human Resources Officer Sanjay Jog had said.
Last month, Reliance Jio posted a positive net income in its first year of commercial operations, with net profit of Rs 722.96 crore in the financial year 2017-18. The telecom arm of Mukesh Ambani-led Reliance Industries saw its net profit for the March quarter marginally increase 1.2 per cent on a quarter-on-quarter (QoQ) basis to Rs 510.44 crore from Rs 504.38 crore in the preceding quarter.
Jio reported a subscriber base of 186.6 million as on March 31, 2018, and net addition of 26.5 million during the quarter under review. The average revenue per user (ARPU) for the company at the end of March quarter stood at Rs 137.1 per subscriber every month. The telco reported total wireless data traffic of 506 crore GB during the March quarter, whereas the total voice traffic registered was 37,218 crore minutes. The average data consumed per user every month was seen to be 9.7 GB per month, as per the company statement.