Reliance Jio Infocomm

How Reliance Jio / Airtel will Delpoy 4G Network Using FDD-LTE(1800MHz) & TD-LTE(2300MHz) ?

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Airtel Reliance Jio 4G LTEReliance Jio Infocomm’s primary focus is 4G LTE and FTTH services. Pre auction, the biggest concern was Reliance Jio’s foray into telecoms and especially 900 MHz spectrum and 2G voice market. Reliance Jio has spent Rs111bn acquiring 1800 MHz spectrum of an average 5.6 MHz pair band across 14 circles in contiguous block. This will enable it to provide FDD LTE services along with TDD in 2300 MHz, including voice to non-RJIL networks. Likewise, Airtel has already rolled out 4G LTE Services in the 2300MHz band with CSFB Technology.

Our discussions with various Network Engineers

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How Reliance Jio intends to Deploy & Use 1800Mhz Spectrum ? Voice or 4G LTE ?

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Reliance Jio Home LTEReliance Jio Infocomm won 5-7MHz spectrum in 1800 band in 14 circles. These 14 circles account for 71%+ of industry revenues, and include all the metros and Category A circles.

Reliance Jio Infocomm in a press release said,
There are several mobile phones and devices available today which have the capability to operate both TD-LTE and FD-LTE technologies in 1800MHz and 2300MHz bands as well as conventional 2G / 3G networks. Rapid strides in global LTE rollouts and introduction of several new chipsets is making LTE enabled smart mobile phones and devices affordable. In any case, Wi-Fi enabled 2G/3G device can access RJIL’s services through an

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Reliance Jio Infocomm 1800MHz Spectrum Win Confirms Takeover of Videocon Telecom

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Breaing NewsThe 1800Mhz Spectrum Auction comes to an end with Reliance Jio Infocomm winning 14 out of the 22 Circles. R-Jio has won 5MHz-7MHz of 1800MHz spectrum in 14 circles for a total investment of ~Rs111bn. We believe it would look to complete the pan-India footprint in 1800MHz (to be used for 2G voice) through acquisition Videocon Telecom.

The Circles where Reliance Jio has bid and won the Spectrum complement the circles where Mukesh Ambani backed Videocon Telecom has already secured

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Which is the Best Fit Spectrum for Reliance Jio Infocomm ?

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Reliance Jio Infocomm Spectrum Bid MeetingReliance Jio Infocomm currently has a pan-India 2300 MHz spectrum which it acquired in the 2010 auctions. In our view, for a robust business model, R-Jio may need two bands of spectrum – one for capacity (which could be its existing band 2300 MHz or 1800 MHz) and one for coverage (which could be either 900 MHz or 850 MHz or 700 MHz).

In our view, to have a robust business model, R-Jio may look to get a coverage band spectrum which supports a mature LTE ecosystem in the future. This could be either 700 MHz (as and when the government auction it) and/or 850 MHz (as and when the government

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Reliance Jio Competes Airtel, Vodafone for 900 + 1800MHz Spectrum

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Reliance Jio Infocomm LogoFor the 1800MHz band, a new entrant needed to deposit Rs19.2b to be eligible for pan-India spectrum while in the 900MHz band this was Rs4.4b for the circles of Delhi, Mumbai and Kolkata. Reliance Jio Infocomm Ltd has furnished higher than the required INR23.6bn bank guarantee (INR19.2bn in 1800MHz and INR4.3bn for 900Mhz), indicates that it may bid for pan-India licence in 1800MHz and also for three circles in 900MHz. We believe the company’s strategy in auctions could be the differentiating factor in terms of aggressiveness in the bidding process.

Airtel and Vodafone have deposited INR37bn and INR28bn, respectively. Idea has submitted a bank guarantee of INR 15bn; others, including RCOM, Tata Teleservices, Aircel and Uninor have reportedly submitted total bank guarantees of over

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Why Reliance JIo Infocomm will Bid in Spectrum Auction ?

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Airtel , Vodafone, Idea Cellular (Idea), Reliance Communications (RCOM), Reliance Jio (RJIO), Tata Teleservices (TTSL), Aircel and Uninor have submitted applications for participation in the 900MHz and 1800MHz auctions to be held in February 2014. The previous auction (March 2013) had failed to elicit any response due to the high reserve price and stretched financials of operators. The February 2014 auctions were anticipated to receive better participation and aggressive bidding (in select circles).

The recent deal between RJIO and Airtel, which has accelerated the former’s rollout plans, could heighten competition in the upcoming auctions. However, even post availability

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Reliance Jio Infocomm – Airtel Deal – Mukesh Ambani’s Materstroke

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Reliance Jio Infocomm - Airtel Deal AnalystsReliance Jio Infocomm [Jio] and Bharti Airtel announced a comprehensive infrastructure sharing agreement. The deal encompasses fibre (inter- and intra-city), towers, submarine fibre—and in future even joint laying of fibre and roaming on each other’s networks. In future, the arrangement could be extended into roaming on 2G, 3G and 4G networks, and even jointly laying optic fiber etc.

Financial details of the deal were not disclosed except a phrase – arms length pricing which indicates that Jio is willing to pay market prices for the infrastructure and services that it avails from Airtel compared to the deep discounted deals Jio made with Reliance Communications.

Mukesh Ambani delivered a Masterstroke by first silencing his cash starved brother Anil Ambani squeezing the last drop from the two deals

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Will Reliance Jio Infocomm have its way in Spectrum Usage Charges ?

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Reliance Jio Infocomm SpectrumThe Telecom Commission recently deferred decision on Spectrum Usage Charges. TRAI had proposed a 3% overall SUC. Reliance Jio Infocomm aim (for the present) is to roll out a BWA 4G LTE service on its 2300MHz network. This spectrum (1x20MHz) was won in the 2010 auctions in which the conditions included 1% SUC on Adjusted Gross Revenue (AGR) from this spectrum. If TRAI’s recommendation of 3% flat SUC for all types of spectrum is accepted, RIL’s SUC would go up by 200bps.

Crucially, for ISPs, voice services into a PSTN network in India

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Why Reliance Jio Infocomm may Takeover / Merge with Reliance Communications ?

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Reliance Jio Infocomm Office65% Anil Ambani owned and Managed Reliance Communications is under Deep Trouble with debt levels continuing to be high (net debt to EBITDA of more than 5x) despite consistent free cash flow generation. The management has not shared any insights on asset monetization in the pipeline to reduce leverage. RCom has signed Tower Sharing and Inter-City Optical Network Sharing Deal with Reliance Jio Infocomm. In this backdrop, we analyze how Reliance Jio Infocomm will eventually takeover Reliance Communications.

In the Recent Past, RCom’s capex is a fraction of

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