RIL Performing Considerably Well in Core-Refining Business

Reliance Industries’ success in the refining industry has been lauded by many, as per a report by Citi Research. Considering this, the company now intends on initiating new projects to enhance the growth of Reliance Industries.

Ensuring unparalleled services

The Citi Research report stated the reason for Reliance Jio’s post-poned launch of its 4G network venture. As per the report, the company has taken the step to ensure seamless functionality of its services. Reliance Jio Infocomm has a lot of money riding on the venture, approximately 22 billion dollars. Therefore, the company is doing its best to ensure that there remains no room for error.

Spectrum integration

One of the most recent developments with regard to Jio’s telecom venture is the spectrum integration of Reliance Jio Infocomm and Reliance Communications (RCom). Anil Ambani owned RCom’s 800 MHz spectrum has been integrated with Jio Infocomm’s and received approval from the Department of Telecommunications. This spectrum-sharing concept will make Jio an unparalleled competitor in the market. In fact Jio Infocomm with its sub-1GHz pan-India Long Term Evolution (LTE) will be the sole contender in the market with this feature. This collaborated effort will see an increase in Reliance Jio Infocomm’s coverage of 70 percent to an impressive 90 percent.

Steady rise in subscription

Reliance Jio is soon to encounter an even more successful phase in the coming years. The telecom arm is predicted to have a subscriber base of 30 million by the financial year 2017. Reliance will therefore, derive a revenue of one billion dollars from the success. However, the growth will not end there. The fiscal year 2018 will see a further increase in subscribers, approximately 60 million which will be a two-fold increase. These findings have been put together in a report by Morgan Stanley.

Morgan Stanley report on Jio Infocomm

The report co-authored by Amruta Pabalkar, Vinay Jaising and Rakesh Sethia revealed that the telecom company would launch its 4G network services within a span of three to nine months. The December of 2015 also saw an unveiling of the telecom company’s services to an estimated 80,000 employees on Reliance Founder’s Day. Commercial services will also commence in the ongoing year, as confirmed by Reliance.

Test phase for 4G network

To further avoid technical glitches, Jio Infocomm had conducted a test phase that involved 0.56 million participants. The subsequent results revealed a massive data consumption of 18GB which proved to be insightful to the company. The test program will now see further expansion with more customers enrolling for the process; this will further increase Jio’s subscription base.

Investments for telecom expansion

Having spent a whopping Rs. 1.2 trillion in the FY16, Reliance is set to invest another Rs. 30,000 crore in the current financial year. The company will invest towards 30,000 RKm of fiber cables, 10,000 towers and double the small cells. This will be an addition to the existing network layout of 270,000 RKm of fiber, 90,000 towers and 50,000 small cells. Management insiders stated that the company would continue to build-in capital expenditure of 15 percent in the long-run.

Summary

Reliance Industries gets positive reviews owing to success on the refining and petrochemicals business front.

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