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Reliance Jio has written down ₹12,000 crore of intangible assets for FY16. The company also disclosed to analysts that its capital expense was partly met with suppliers credit of ₹41,000 crore.
Reliance Jio;s subscriber base hit 108.9 million subscribers as of March 31, 2017. The operator has over one lakh mobile towers and it plans to add another one lakh towers to the network in the coming months.
“RJio clarified that as of the 109 million subscribers at March-end, 72 million had signed on to the Prime offer. Additionally, it highlighted that there have been far more sign-ups during April. The company also said that most of the Prime sign ups have also taken the higher recharge of ₹303 (valid for three months),” said a report from analysts at JP Morgan. The operator’s capital expenditure stood at ₹19,000 crore in the fourth quarter ended March 31 and is expected to be ₹18,000 crore in the first quarter of FY18 .
“Company will continue to focus on targeting high ARPU subscribers. Total Jio capex till date stands at ₹1,79,000 crore, which was funded by ₹47,000 crore of debt, ₹45,000 crore of equity, ₹25,000 crore of OCPS, ₹22,000 crore of deferred spectrum liability and suppliers credit of ₹41,000 crore,” said a report from Emkay Research.
According to Morgan Stanley, RJio’s pricing strategy clearly reflects its ambition to gain high-end data subs and drive usage. The “Jio Dhan Dhana Dhan” offer – announced on April 11, – is still open for subscription. Prime users can get 1GB data/day or 2GB/day for the next three months by paying ₹309 or ₹509, respectively. Non-prime members can avail of the same offer and can become prime members by paying an additional ₹99.
“The RJio prime offer is still unmatched in the industry; even the non-prime offer is at a ~40 per cent % discount to industry standard plans. While competitors have launched certain promo offers, so far they come with limited validity and are for a small set of customers,” Emkay Research said.
Data usage per subscriber on RJio’s network is 7-10 GB per month compared to current industry usage of 850MB per month.
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