reliance-jio-4g-lte

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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How Reliance Communications Can Deploy 4G LTE on CDMA Spectrum ?

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Reliance communications 4G LTEForget the Hype Regarding Reliance Jio Infocomm 4G LTE as the spectrum the latter has is not as efficient compared to what Reliance Communications [RCom] has. RCOM already has 800, 1800 and 2100 in various circles. RCom’s 5MHz in 800 Band is contiguous in most key circles including Delhi and Mumbai and with steady progress of the 800 LTE ecosystem globally (such as South Korea). RCom is already using this spectrum to offer EVDO Wireless Broadband which has been contributing significantly to its bottom line. Reliance Jio Infocomm could fall back upon RCom to offer LTE provided regulations permit Spectrum Sharing.

Successful Deployment of 800 MHz Spectrum Band for 4G LTE
The Korean telcos use 850MHz (Band 5) for LTE. Uplink frequency is 824-849MHz and downlink

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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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Reliance Jio Infocomm Likely to Bid in upcoming 1800Mhz Spectrum Auction

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Reliance jIo Bid in AuctionReliance Jio Infocomm has objected to the telecom regulator’s recent recommendation of an uniform spectrum usage charge of 3% of revenues after 1st April 2014, for all spectrum acquired through an auction. Reliance Jio is the telecom venture of Reliance Industries. It acquired 20Mhz pan-India spectrum in 2.3GHz band through an auction in June 2010 at a price of Rs128bn. The spectrum carries a charge of 1%.

Reliance Jio had acquired

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Investors Seek Clarity on Reliance Jio Infocomm 4G LTE

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Telecom Invetsors Meet IndiaInvestors in the Indian Telecom Space focused on two important issues – Indian Currency and the 4G-LTE Space.

Foreign Investors Wary of Indian Government Flip Flop Policies – We believe that, despite the government’s decision to allow 100% FDI and a depreciating rupee, the experience of some of the players – such as Telenor, Etisalat (licence cancellations), and Vodafone (tax dispute) – has not been encouraging. Separately, the last set of new players giving up their pan-India dreams and shutting down circles suggests that it is hard to make a case for a foreign player to take the new-entrant

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