Reliance Jio plans $4.4B injection into 4G network - Mobile World Live

Reliance Jio plans $4.4B injection into 4G network

16 JAN 2017

Indian market newcomer Reliance Jio aims to raise $4.4 billion from existing investors to increase capacity on its 4G network, Bloomberg reported.

Parent company Reliance Industries filed a notification with Indian authorities over the weekend outlining its intention to raise the funds through a rights offer – a move offering existing stakeholders the opportunity to increase their holdings.

Reliance chairman Mukesh Ambani (pictured) already invested an estimated $25 billion to launch Jio’s 4G service across the country.

Since entering the market in September, Jio offered a number of free data and call promotions to lure customers. In December, the company said it added 52 million subscribers in its first three months of operation and announced the extension of its free data offer into 2017.

Increased competition
In response to Jio’s market entry, the country’s three largest operators – Bharti Airtel, Vodafone and Idea Cellular – launched their own discount deals in a bid to retain their existing customers.

Competition, though, looks to be taking its toll. In November Vodafone wrote down the value of its Indian business by €5 billion, citing increased competition in the market.

Vodafone was subsequently linked with a move to merge with either Jio or Idea Cellular in the market, rumours the companies were quick to deny.

Author

Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

Read more

Related

Tags