Reliance Jio Targets Big Bang Nationwide Launch of Fiber Broadband, Wi-Fi & 4G LTE Services

Last month in a conference of Indian Telecommunications progress on 4G-LTE front, Reliance Jio’s B2B executive made a presentation and excerpts from the same are as under.

Mukesh Ambani led Reliance Jio Infocomm (RJio) has laid lot of stress on the fact that fibre connectivity is required [Even in 1999, Mukesh did the same which is now with RCom]. Reliance Jio plans to connect as many buildings with fibre as possible. Over the longer term, RJio’s offering will be a mix of fibre [FTTH], LTE and WiFi. Management explained that chargeable WiFi (not free) will be an integral part of the company’s

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Reliance Jio Connects 11,000 Towers With Dual Mode LTE

Reliance Jio Network Equipment for 4G LTETelecommunications and Network Gear Industry channel checks suggest that Reliance Jio Infocomm has completed ~11,000 base station installations nationwide and is possibly targeting 30,000-45,000 base stations by launch. We expect this target to be met by Dec-14 coinciding with the Founder Birth Anniversary on Dec-28, 2014. Rollout is progressing at a pace of 2,500- 3,000 base stations per month (with the monthly pace accelerating). The launch could happen with 30,000-45,000 sites, with rollout obviously continuing post launch. More Importantly, the rollout is well spread out across the country and not concentrated in just the top

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Can Reliance Jio Crack the Voice Market with 4G / VoLTE ?

Indian Voice MarketIndian Telecommunications even today is 2G Voice dominated market with operators expanding footprint into rural areas to get the best they can from the infrastructure they have rolled out over decades. Even until last Quarter over 85% of Telcos’ Revenues were from Voice. In this backdrop, Mukesh Ambani managed Reliance Jio Infocomm, has no viable low-cost voice strategy, may struggle to get subscriber traction as a pure data approach has struggled globally. Reliance Jio is likely to target Tier 2 / 3 Cities for their 4G LTE Launch as it was easier for them to acquire Right of Way and light its Towers with virtually unlimited Optical Fiber Carrying Capacity.

We highlight that globally TD LTE is likely to be used for data offload in markets where both customer affordability and data usage are high, suggesting a mismatch

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Reliance Jio Get Power of Media Properties after Network18 Buy-Out

Reliance Jio Buys TV18 GroupReliance Industries announced on May 29 that its board has approved the acquisition of a controlling stake in Network 18 Media & Investments, including its 51% subsidiary TV18 Broadcast and associate company Infomedia Press; together the group owns internet properties, e-commerce businesses and broadcast content. The board has approved funding of up to Rs40bn for the acquisition. The deal, to be done through a wholly owned subsidiary of RIL.

With this deal, Reliance Jio moves closer to convergence of telecom, media and internet in its business model, giving

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Reliance Jio Acquisition of Videocon + Merger with Tata DoCoMo, Aircel – A Case Study

Reliance jio Acquisition and MergersConsolidation in the Indian Telecom industry is inevitable with weaker players such as Tata DoCoMo / Indicom looking to exit as its already negative networth worsens by the day. The current M&A Rules of the Government indicate 50% combined market share and 25% total spectrum cap (50% in a given band). Market share is based on both subscriber base (VLR-based) and adjusted gross revenues (AGR). We analyze on this front as bottomline of all the Challenger has been bleeding in red for quite few years now.

We have already enlightened that Reliance Jio Infocomm bid in circles where Videocon’s 1800Mhz Spectrum was

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Reliance Jio likely to create 2 Business Units – 4G LTE Monetization

Reliance Jio Infocomm LogoAccording to Analysys Mason, Reliance Jio Infocomm is expected to setup two separate business lines – one for traditional mobile business (competing with incumbent operators) and the other targeting homes (broadband and content distribution platform – competing with broadband players and distribution plays such as Cable and DTH).

Globally, LTE has been monetized either through Selling more data as LTE has higher throughput than other technologies Creating new revenue streams, which involves selling content/ applications (i.e. games, movies on demand, mobile TV etc). A hybrid model is increasingly being employed by telcos for monetizing their 4G networks. Since Reliance Jio is yet to launch 4G services, they are likely to adopt hybrid LTE Model going forward.

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Reliance Jio Infocomm Launch in Late 2014 – A New Case for Price War

Reliance Jio LaunchReliance Jio Infocomm which is in advanced stages of Testing its 4G LTE networks is expected to launch its Telecom Services in late 2014 with the focus primarily being on data services (although they may launch Vo-LTE voice offerings). We expect Reliance Jio, Being a new entrant, to launch an aggressive offering to gain traction in the already overcrowded telcos market. (Historically, we have seen all new telcos use this approach to gain traction). This may force existing telcos to reduce tariffs to match the aggressive offering.

We believe any new competitor like Reliance Jio who

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

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

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 ?

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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