Update 2: Reliance Jio Infocomm has informed that it has received unified license for all 22 service areas across India. With this, the company has migrated its existing ISP license along with Broadband Wireless Access (BWA) spectrum to the Unified License regime with authorization for all services except Global Mobile Personal Communication by Satellite Service (GMPCS) under Unified License in all service areas.
Update 1 (October 15): Reliance Jio Infocomm Limited (erstwhile Infotel Broadband Services Limited) has reported revenues of Rs 0.02 crore for the six month ended September 30, 2013, a flat growth from Rs 0.02 crore revenues for the same six months period last year.
It reported a net loss of Rs 4.06 crore for the six months period, a significant increase from Rs 2.93 crore loss reported in the corresponding period last year.
This is however because Reliance Jio Infocomm is yet to commercially launch its 4G service in the country, due to which the revenues are currently quite low while the expenses are quite high, driven by RIL’s significant pre-launch investment on its 4G service. Download – Financials
Earlier (October 15): Reliance Jio Infocomm Limited has received Letter of Intent (LoI) from India’s department of telecom (DOT) for a Unified Licence with Authorisation for all Services under Unified License in all service areas.
This means that even if the company does not participate in the upcoming 2G auctions early next year, it has the authorization to offer voice services over the Internet (VoIP) to customers, wherein calls will be allowed to terminate on regular mobile numbers.
Apart from this, Jio has received a Facility Based Operator License (FBO License) in Singapore which will allow Reliance Jio Infocomm Pte Ltd. to buy, operate and sell undersea and/or terrestrial fibre connectivity, setup its internet point of presence, offer internet transit and peering services as well as data and voice roaming services in Singapore.
Jio is the only private player with Broadband Wireless Access spectrum in all the 22 telecom circles of India. The launch of BWA services has been delayed in India, with only Airtel launching services in the limited circles that it has spectrum, and even these don’t appear to have had a significant uptake. Jio claims to now have a national footprint of over 4,000 employees and finalized the key vendor and supplier partnerships: In the past year, Jio has announced key agreements with Reliance Communications (RCOM) for inter-city optic fibre sharing, for sharing of up to 45,000 of RCOM’s nationwide telecom towers, and for joint working arrangements to configure the scope of additional towers to be built at new locations. It has also announced a key agreement for international data connectivity with Bharti to utilise dedicated fiber pair on Bharti’s i2i submarine cable that connects India and Singapore, and signed the Construction and Maintenance Agreement (C&MA) and the Supply Contract for “Bay Of Bengal Gateway” Cable System (BBG) in Kuala Lumpur, to provide connectivity between South East Asia, South Asia and the Middle East, Europe, Africa and to the Far East Asia.
Some notes from our earlier coverage of Jio:
– Jio Companies: RIL has listed four associate companies or joint ventures under Jio brand – Reliance Jio Private Limited, Reliance Jio Cloudworks Private Limited, Reliance Jio Electronics Private Limited and Reliance Jio Media Private Limited. It has 50% stake in all these companies and has subscribed to 5,000 shares in each of this joint ventures.
– Extramarks Education: RIL has 4.6 million equity shares worth Rs 10 each of Extramarks Education, as of March 31, 2013 and has invested Rs 125 crore in the company as of March 31, 2013. RIL had picked up 38.5% stake in Extramarks Education in November 2011.
– VC Firm GenNext Ventures: RIL has invested Rs 200,000 in a VC firm GenNext Ventures and has a 50% stake in the company. It also has a fully owned subsidiary company called GenNext Innovation Ventures Limited and another subsidiary Kaizen Capital LLP, in which RIL owns 49.98% stake as of March 31, 2013.
– Payments Firm: RIL also has a payment solutions subsidiary Reliance Payment Solutions Ltd, setup in 2007, which currently offers two types of solutions – a prepaid card called R-Pay card which allows users to load money, pay for their purchases and send money to other R-Pay users and to Bank accounts and a digital wallet service called R-Pay Wallet which securely stores the user’s R-Pay Card, credit, debit cards and bank accounts details and enables payments at various online and physical merchants.