Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landscape

Discussion in 'Economy & Infrastructure' started by Yusuf, Mar 10, 2013.

  1. Yusuf

    Yusuf GUARDIAN Administrator

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    MUMBAI: Mukesh Ambani's love for telecom is no secret. Reliance Infocomm (now Reliance Communications), the telecom arm of undivided Reliance launched in 2002, was his baby. And he let it go to younger brother Anil with a heavy heart as part of the settlement to divide the Reliance group in 2006.

    Ambani is back with his second $10-billion telecom foray to offer bundled voice and data services in the country. And his emotional attachment with Reliance Infocomm is reflected in the name of his latest venture, Reliance Jio Infocomm — more than a hint that he wanted his first telecom baby to survive (Jio).

    Ambani is ready to roll out 4G services later this year, most likely on December 28, the birth anniversary of his father and Reliance founder, the late Dhirubhai Ambani. However , the company may launch a pilot a little earlier for testing purposes, said sources in the know. RIL declined to comment for the story.

    The ambitious project is expected to roll out in three phases — starting with Delhi & Mumbai later this year, followed by 69 cities by 2014 and over 800 cities by early 2015.

    One lakh towers

    After exploring different possibilities , RIL has finally decided to set up over 1 lakh telecom towers on its own, moving away from its earlier asset-light strategy. The low-emission towers will look different from the existing ones in the country with entire equipment installed inside it.

    The towers, which cost a little over Rs 1 lakh each, are expected to be manufactured by Himachal Futuristic Communications, in which Reliance Industries (RIL) holds a stake, while a part of it may be outsourced, said another source in the know. The company has sought permission from the Navi Mumbai Municipal Corporation to install towers in the satellite city.

    Back in the game

    Ambani had surprised everyone when he bought a 95% stake in Infotel Broadband Services for Rs 4,800 crore in June 2010, a few days after the Mahendra Nahata-promoted company successfully bid for a pan-India BWA licence. Within three years, the government allowed BWA holders to offer voice services by just paying an additional Rs1,680 crore. However, the Cellular Operators' Association of India has accused the government of providing "undue benefit" to RIL by changing the rules midway and allowing BWA players to offer voice services — which account for over 85% of telcos' revenues.

    Core team

    Besides Mukesh Ambani and his confidant Manoj Modi, the core team for RIL's telecom foray includes Jotindra Thakkar, the procurement in-charge and a close relative of Modi; and Anuj Jain, the chief technology officer. Sumit Chowdhary is the chief information officer. He has joined RIL after a successful stint at IBM, where he served as VP and partner. Chowdhary has also worked at Reliance Communications. RIL has also roped in Arvind Rao as the head of innovation and platform. Rao was the MD and CEO of On-Mobile Global.

    $10-billion telecom foray

    Telecom foray will cost Ambani $10 billion, of which RIL has spent about $4 billion in getting licences and on infrastructure development. The company would spend $6 billion in the next three years to launch and stabilize operations. Riding on the success of its deal with BP, the company is eyeing to get the largest foreign direct investment in the country by selling a little over 25% stake in Reliance Jio for $3.5 billion to US-based AT&T, valuing the company at $14 billion — 60% more than the combined market cap of Idea Cellular ($6.14 billion) and Reliance Communications ($2.4 billion) or 63% of Bharti Airtel's market cap of $22 billion, even before its launch.

    Aims to be No. 1

    It aims to become India's largest telecommunications player within three years of the launch and to break even by the end of third year. Analysts believe Ambani will definitely change the pecking order in the world's third biggest telecom market as most players are reeling under huge debts amid falling margins. Sunil Mittal got the better of the Ambanis when the latter disrupted the Indian telecom market a decade ago. The jury is out on which way the wind would blow the second time.

    How Mukesh Ambani’s Reliance Jio Infocomm is set to alter telecom landscape - TOI Mobile | The Times of India Mobile Site
     
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  3. Yusuf

    Yusuf GUARDIAN Administrator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    His pact with his brother for no competition for specific time is over. Anil Ambani screwed up Reliance telecom. His brother will finish off what's remaining.
     
  4. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    Personally I will stay away from any Reliance brand, including this one. I have had enough terrible experience with Reliance at all levels.
     
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  5. Yusuf

    Yusuf GUARDIAN Administrator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I bought the Dhirubhai Ambani plan when it was launched with that phone for 500 rupees thing. realized the folly of it as i bled.

    Since then, stayed away from Reliance.
     
  6. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    I have burned myself in almost every Reliance product. Brothers are crooks. 4G is still a joke. Most likely Mukesh has got raw deal with telecom min so now again interested in this sector. Not too long time back he wanted exclusive pan Indian license for CDMA tech.

    Sent from Nexus 7 using Tapatalk HD
     
  7. Coalmine

    Coalmine Regular Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I have not seen anyone selling reliance sim card or recharge card for past 2 year.
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    CDMA? his brother was eager to dump CDMA and move to GSM. I think CDMA wont work. Reliance does what it wants. I think Mukesh will definitely roll out.
     
  9. Apollyon

    Apollyon Führer Senior Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    HaHa ! I remember that phone, was the first mobile phone i used (my grand father bought that for himself).
    My grandfather's cousin brother (aah ..) had the same phone which he bought for Rs. 30000 (iirc, it's been many years) and i was excited when i got that same phone in my hands, did all sorts of stuff with it.
    My neighbor taught me how to send a SMS. I remember watching Aaj Tak and Star News on that small screen.
    Then came the horror, Rs. 2000 bill at the end of the month and that phone was gone.

    :rofl::rofl:
     
  10. warriorextreme

    warriorextreme Senior Member Senior Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I have bought SIM cards of almost all Telecom companies until now except Reliance...Friends shared too many bad experiences they had with RCOMM
     
  11. one

    one Regular Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I had Reliace BB which they promised in a week, paid the down payment of 1000, and after complaining several times one tech guy comes after 3 months and gives a modem and disappears. A second guy comes after 3 months, brings another modem installs it and disappears and after a week, my internet disappears. Thank God just paid 1000 bucks for a week of internet.

    In short, you get reliance BB for 1000 bucks for a week after waiting for 6 months and 2 modems. :toilet:

    I have an allergy to Reliance.
     
  12. nrupatunga

    nrupatunga Senior Member Senior Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    GSM lobby softens stand, not to take legal recourse
    Seriously, reliance knows how to muscle out any opposition. After all when govt is with you, you can get away with anything.
     
  13. Yusuf

    Yusuf GUARDIAN Administrator

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    Reliance has always found ways to do business on its terms. Papa Ambani started the trend.
     
  14. Ray

    Ray The Chairman Defence Professionals Moderator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    So, all of you chaps are simply saying is that Reliance has lost your reliance on it.
    and that all you are vowing not to have any re-alliance with Reliance.

    In short, you all are tired of Reliance's dilliance!
     
  15. srikanth

    srikanth Regular Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    Does anyone remember Reliance Webworld? 2-4 were in my area, they used to have computer game competitions. All of them went bust, now there is Big entertainment's rental service in their place.
     
  16. srikanth

    srikanth Regular Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I didn't know you could be witty.
     
  17. Yusuf

    Yusuf GUARDIAN Administrator

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    Army chaps always are witty.
     
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  18. nrupatunga

    nrupatunga Senior Member Senior Member

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    Its just not conducting business their way, its plain greediness. Last time as well they were fined for showing international numbers as local, masking the numbers showing duplicate numbers etc. Actually i dont remember the exact issue, but was something similar lines. Outright zero ethics.
     
  19. Ray

    Ray The Chairman Defence Professionals Moderator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    You may like to read

    Link
     
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  20. Ray

    Ray The Chairman Defence Professionals Moderator

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    Re: Mukesh Ambani’s Reliance Jio Infocomm set to alter telecom landsca

    I hope that is not a tongue in cheek meaning we are all Standing Jokes! ;) :rofl:
     

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