Stock brokerage firm KRChoksey Shares and Securities on Saturday said that the broadband arm of Reliance Industries’ could join the Rs.100,000 crore ($16 billion) club in the next 2-5 years. Also Read - From today, Reliance Jio users will need to pay up to Rs 480 more for prepaid plans
The brokerage firm’s prediction on the prospects of Reliance Jio Infocomm’s revenue growth was revealed in its study: “Reliance Jio: The next member of Club 1 Lac Crore?” Also Read - Reliance Jio hikes prepaid plan prices from tomorrow: Here’s how you can avoid paying extra
The firm said that the revenue projections were based on two pre-conditions. First that the telecom industry maintains a compound annual growth rate (CAGR) of 12 percent for the next 5 years. Also Read - Reliance Jio reportedly plans to launch a tablet and TV, possibly by end of next year
The other pre-condition is that RJio to adapt a subscriber based model viz-a-viz revenues per minute (RPM) model followed by other telecom companies.
“Reliance’s vision for India is that broadband and digital services will no longer be a luxury item. Rather, Reliance envisions an India where these are basic necessities to be consumed in abundance by consumers and small businesses,” the firm said.
“The initiatives are truly aligned with the Government of India’s ‘Digital India’ vision for our nation.”
Recently, Reliance during its annual general meeting (AGM) announced that its broadband services will be launched by December this year and 4G devices under its own brand name Jio will be available from Rs.4,000.
The company said that it has invested Rs.100,000 crore in this business. The company has end-to-end initial capacity to serve over 100 million broadband and 20 million fibre-to-home customers for the Jio platform.
The company will offer VoLTE (Voice-over-long-term evolution) 4G smartphones across all price points.
It will also offer a host of apps and services like the Jio Chat app that has garnered over one million active users in three months. Other offerings include switch-and-walk app, Jio Drive (cloud app), Jio play, Jio beats, Jio mags, Jio news and Jio money.
The company has also been granted provisional registration by Ministry of Information and Broadcasting for operating as multi-service operator (MSO) in digital addressable system (DAS) in India.
Thereby, the company can transmit video content on mobile devices and the experience will be almost similar to that of watching video on television sets.