Archive for January, 2016

Reliance Jio to Offer Superior Voice Quality on VoLTE

January 28, 2016

Reliance Jio has launched its 4G services and smartphones for its employees. The Voice over Long-Term Evolution (VoLTE) and Voice over Wi-Fi (VoWiFi) features of the LYF branded phones are already attracting a lot of attention.

Voice on VoLTE

VoLTE will let Reliance Jio manage voice calls over LTE networks. It will offer High-Definition (HD) voice clarity and enhanced connectivity. The voice quality on VoLTE is much better than the voice quality on GSM. Voice on VoLTE is loud and crystal clear, and free from any background interference, cracking, or breaking of voice. Reliance Jio ensures that talking over VoLTEis so clear that one would think the caller is seated right beside them.

Reliance JioVoLTE services offer voice conference calls with up to 7 persons and video conference calls with up to 3 persons, on its high-speed 4G internet. In addition, users are also able to download and surf, even when on call.

Earlier, operators used 2G or 3G networks to carry voice, while LTE was used only to carry data. Now, with the help of LTE, operators like Reliance Jio transmit voice calls with greater frequencies, offering clear and detailed audio.

Reliance Industries has also partnered with mobile phone manufacturers like LG and Micromax for smartphones supporting VoLTE technology. They will soon be rolling out theirsmartphones.

Distribution of Smartphones

The retail arm of Reliance Industries, Reliance Retail will look after the distribution of LYF branded phones. By the end of this week, the company will ship the handsets to around 1.2 lakh retailers across the country.

The electronics arm, Reliance Digital is witnessing a great response in the sales of itsVoLTE-equipped smartphones. It has joined hands with 6 zonal distributors.

Reliance Retail launched the initial LYF branded phones of Earth 1, Water 1, and Water 2. These phones are priced at INR 23,990, INR 14,990, and INR 14,690, respectively, and are currently available at discounted rates.

The company has nearly 5,000 digital sales specialists working on the sales of the handsets and 1,000 service centersworking on after-sales service.

Reliance Retail’s E-commerce Venture

Reliance Retail is focusingon establishing itself in the e-commerce space. At present, the company is testing its service with customers and gathering feedback on the performance of its website.

The fashion website,promoting a private label, will also buy 60% of its product from national and international brands. The company will be launching its website with 30,000 sellers. This is 15% of the total sellers in India.

Experts predict that the visionary planning and deep pockets of Reliance Retail will soon let it emerge as a leader in the e-commerce business.

In another venture, Reliance Retail has associated itself with Coca-Cola. Coca-Colarecently announced the launch of its new beverage. It is a ready-to-drink flavored milk, called Vio. Under the pilot launch, the company will make the drink available across 500 Reliance Retail outlets,starting from Republic Day.

Summary

Jio offers HD voice quality over the LTE networks resulting in loud and crystal clear voice services.

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Reliance Jio Awaits Employee Feedback Prior to Commercial Launch

January 21, 2016

Reliance Jio is in no rush to launch its 4G services and is clearly more focused on delivering high quality service to its customers. The company has made it clear that they will willingly forego the first mover advantage in India’s 4G sector, while improving services, based on the feedback from their employees.

Reliance Jio’shead of strategy and planning, Anshuman Thakur, expressed this sentiment when he stated “There’s no final date on Jio 4G launch. We will wait till employees say the Jio network is better than others.”Chairman MukeshAmbaniwas also optimistic and hoped that the company’s provision of free service to its employees would “help in cocreating the best experience for all our customers”.

Tentative Launch Dates

Technological limitations and India’s underdeveloped handset ecosystem have impeded earlier launches of 4G service, despite the fact that Jio has had pan-India 4G airwavesin the 2300 Mhz band, from way back in 2010. In an endeavor to ensure world-class quality at the time of the launch of consumer services, the company initiated a limited rollout, providing services only to employees and family members on 27th December 2015. The commercial launch is now most likely to take place in March-April, which would be in keeping with a statement from the company that indicated that the fiscal year beginning from April would be its first full fiscal year of commercial operations.

4G Service for Employees

Reliance Jio began its trial and testing of 4G services for the local market towards the end of December, providing connectivity to Reliance Jio employees and family members exclusively. In less than a month the number of users on Jio’s 4G network has already reached 100,000. This trial period with free service for employees will continue until the time of the commercial rollout, during which time the company will gather comprehensive data and feedback to optimize and improve services for end customers.

The company has already channeled more than INR 1,00,000 crores into its telecom venture, with the board now clearing the path to raise an additional INR 15,000 crores through rights issue to existing shareholders.

Reliance Retail Gears Up for Ecommerce Debut

Reliance Retail launched a beta version of its fashion and lifestyle website. At present it has been launched on an invitation-only basis, but is expected to go live by the end of the fourth quarter. The last quarter also witnessed the opening of 16 new ‘Reliance Trends’ stores, in December. The company’s retail business achieved its highest-ever quarterly turnover of INR 6,042 crores in the last quarter and it now has more than 3,000 stores operating across the country.

Summary

Jio is readying for the commercial launch of 4G services, based on feedback from the employee test launch that now has 100,000 users.

Reliance JioMarkets LYF Branded Phones on Twitter

January 14, 2016

Reliance Jio is marketing its latest generation LYF branded smartphones on the social media platform, Twitter. The company has emphasized on the phone and the cover. The phone has lively colors on its packaging, offering world-class appeal. Actress NargisFakhri features on the cover.

Reliance Jio had made a soft launch of its services on December 27th, on the eve of Reliance Industries’ Founder DhirubhaiAmbani’s 83rd birth anniversary. The launch created a trend on Twitter with the hashtag #CelebratingJio. It was trending across the world. In India, it was the topmost trend in 26 cities. Nargis tweeted, “Loving this! Design in India is surely standing out and making its mark! Way to go #LYF.” The tweet soon got a number of likes and re-tweets.

Reliance Jio 4G Subscribers

In a recent report, Credit Lyonnais Securities Asia (CLSA) said that Reliance Jio will get around 8 crore 4G subscribers in two years. According to the report, more than half of the customers will be shifting from other major telecom companies. It expects 4G revenue in India to be INR 80,300 crores in the next two years.

Based on its study of 17 service rollouts since the past 13 years, CLSA found that new companies in the Indian telecom market earn a market share from 2% to 5% in two years, but Reliance Jio will be gaining 7% market share in two years. It will also get 16% of the market share in data customers. Most of the subscribers of Reliance Jio will be from urban areas. Reliance Jio will be focusing on data-heavy markets, as they will quickly embrace the 4G technology.

Last month, Reliance Jio launched its service for employees of Reliance Industries and their families. It now deploys the service to around 1 lakh people. During the launch, Chairman MukeshAmbani compared his team to the sample size of India. He told the top executives that both are equal.

Reliance Jio and Reliance Communications Spectrum Sharing Deals

Reliance Jio will be inking spectrum deals with Anil Ambani’s Reliance Communications. Both the companies will be trading and sharing their spectrum space. The agreement will be signed next week.

Reports suggest that the two companies will share spectrum in all the 22 telecom circles of India. Reliance Jio will be buying the spectrum space in the bands of 800 MHz to 850 MHz in 12 circles for INR 4,500 crores. Reliance Communications will use this for liberalization of the spectrum, as mandated by the Department of Telecom (DoT).

Both Reliance Jio and Reliance Communications will be among the first companies in the country to offer pan-India 4G Long-Term Evolution (LTE) service on the bands of 800 MHz and 850 MHz.

Reliance Communications had sent an application for liberalizing the band of 800 MHz spectrum in around 20 telecom regions. DoT asked the company to pay INR 5,600 for liberalizing the spectrum in 16 areas. The telecom company is yet to get a notice for the remaining 4 regions.

Summary

Jio is making use of the social media platform, Twitter to market its LYF branded smart phones.

2016 to be a Significant Year for Reliance Industries

January 8, 2016

Brokerage company, Credit Lyonnais Securities Asia (CLSA) predicted that 2016 would be the biggest year for Reliance Industries.

Value of Reliance Industries’ Business

In 2015, stocks of Reliance Industries outperformed the Sensex for the first time in the past seven years. This is because its petrochemical and refining business fetched better results. On 6th January, the stock attained a five-month high of 1,029.10 by gaining 2.38%. This also improved the scope of its upcoming telecom business.

Reliance Industries will expand its business in petrochemicals and refining. It is also working to set up its telecom business. The MukeshAmbani-led company has decided to invest USD 55 billion, which is equal to its present market cap, by 2018. Out of this, it will start projects worth around USD 30 billion, this year itself. This will increase Reliance Industries’ earnings and future returns as well.

The petcoke gasification project of Reliance Industries is among the largest in the world. The company has decided to replace expensive imported Liquefied Natural Gas (LNG) with low-cost petcoke gas. This will help the company to add USD 2 per barrel to its Gross Refining Margin (GRM). It will also be focusing on Refinery Off-Gas Cracker (ROGC) project to reduce the cost of raw materials in the petrochemical segment. This will increase its GRM by USD 1.

Reliance Jio aims to get around 10 crore telecom subscribers. As per CLSA, this will add another USD 25 billion to Reliance Industries’ market cap.

Reliance Industries’ Business

Founder of Reliance Industries, DhirubhaiAmbani started his business venture as a polyester yarn trader. Today, the company is one of the largest private companies in the world. It produces oil and gas, makes petrochemical intermediates, refines thecrude product,and produces and sells branded textiles. This growth has been possible due to its unwavering focuson the oil, gas, and petroleum business in the last 20 years.

Reliance Industries partnered with British Gas and ONGC in the PannaMukta and central and southern Tapti blocks. The company also has conventional oil and gas blocks in places like Cambay Basin, Krishna Godavari, Sohagpur,Gujarat-Saurashtra, Mahanadi, and Cauvery Palar, among others. Its Krishna Godavari basin is an example of the biggest investment in gas exploration and production in India.

Internationally, Reliance Industries has inked Production Sharing Contracts (PSC) for two offshore blocks in Myanmar. It also has conventional blocks in Yemenand Peru. In 2010, the company invested in partnerships to drill, explore, and produce shale oil and gas in the United States.

When Reliance Industries began its operations in the petroleum refining segment, the Indian economy flourished. Reliance Industries initiated its facility in Jamnagar in 1999. From an importer of petroleum products, the country became a net exporter within just 3 years. The Jamnagar plant has a capacity of 6 crore tons a year.

Reliance Industries has been a leader in refining operations. Its unmatchable execution of projects at a high speed and at low prices makesit stand out from the rest. At present, the company has become a significant player in the global market.

Reliance Industries’ Radio

Last month, Reliance Industries rolled out its ‘R-Radio’ for employees. Through the medium of radio, the employees will be able to give and take suggestions on management. This is a part of the company’s focus towards human resources to attract and motivate them.

Summary

According to CLSA, a brokerage company, the year 2016 will be the biggest year for Reliance Industries.