Reliance Jio may launch 4G services across India by April 2016

Reliance Jio may launch 4G services across India by April 2016[Representational Image]Reuters

Reliance Jio is expected to launch its pan-India 4G services in April this year, according to a US-based brokerage firm.

Reliance Jio, the telecom arm of Mukesh Ambani-led Reliance Industries, had launched its 4G services for its employees on 27 December.

“We expect Reliance Jio’s pan-India launch by April 2016 as the company mentioned all regulatory compliance measures are in place,” Morgan Stanley said in a note sent to The Economic Times.

Morgan Stanley expects Reliance Jio to earn $1.7 billion of revenue by the end of 2016-17 if it starts its commercial operations in April.

The positive outlook by the brokerage firm comes in wake of Reliance Jio’s partnership with Reliance Communications in spectrum trading and sharing. As per the agreement reached by both the companies this week, RJIL will buy spectrum from RCom in the 800-megahertz (MHz) band across nine circles and the two companies will share spectrum in the 800-MHz band across 17 circles.

RJio possesses 2,300 MHz in all circles, 1,800 MHz in 18 circles and 850 MHz in 10 circles.

“RCom has applied for spectrum liberalisation in the 850 MHz band, Jio will be able to get the spectrum in 45 days when its files with the telecom department for related permission,” Morgan Stanley said.

Reliance Jio may aim to gain about 131 million customers by end-2019-20, it added.

It also expects the company to raise its annual revenue of $6.69 billion (Rs 45,492 crore) by March 2020.

Reliance Jio’s 4G launch is expected to pose significant risk to market shares of the top two telecom operators — Bharti Airtel and Vodafone India — as their high-value subscribers may become “early adopters” of the high-speed data services offered by the company, CLSA had said last month.

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