Reliance Jio Management suggested the current test program is to be upgraded into commercial operation in the coming months. The company suggested the network roll-out is substantially complete, on netoff net tested. According to Research Analysts, RJio will have
~30mn subs by F2017 and 60mn by F2018, with ARPU of 1.3x-1.8x vs. the current industry ARPU of Rs200, thus clocking in over US$1bn revenues in F2017.
Reliance?s message on Jio remains that the company ? having spent so much time and energy on the venture ? does not want to take any chances with customer experience upon launch; and are willing to take time in order to get in ?right? at the start. The company will look to have pan India coverage soon after launch, but not at the same time everywhere
RJio currently has a network of c.92k towers in the country (half of them selfowned) ? which should all be radiating over the next few weeks. Along with it, the company will look to have a portfolio of 50k small cells on launch, which it hopes to eventually scale up to 100k.
Jio LYF Handsets
RJio has so far introduced 4 models of 4G/VoLTE enabled handsets with a price range of between Rs6000 and Rs19000. A rapidly
evolving handset ecosystem would aid fast proliferation of 4G, in our view. Already, more than 50% of smartphones shipped are LTE-enabled. Currently ~45mn 4G handsets are estimated to be in the market of ~250mn smartphones. ~150 4G models are available in the market with ~60% below Rs12000. Average selling price of LTE smartphone has fallen from ~Rs25k a year ago to ~Rs10K.
