The excessive delay in Reliance Jio‘s commercial launch is frustrating investors, a Citi Group report said here on Friday. 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. The delay is expected to be on the account of the company’s chase for ‘perfection’, it said. Also Read - Jio Freedom Plans 2021: Jio launches 5 new prepaid plans with no daily data limit - check detailsAlso Read - How to recharge your Jio number via WhatsApp
RIL (Reliance Industries Ltd) is leaving no stone unturned in ensuring Jio does not over-promise and under-deliver. The company 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, the report said. Also Read - 5G JioPhone launch could be around Diwali this year, price to be around Rs 3,500
It (RIL) also plans to increase the coverage to 90 percent (from 70 percent) before the Jio launch, it added.
The report however stressed 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 FY’18.