Reliance Industries’ data services venture Reliance Jio Infocomm (formerly known as Infotel Broadband Services Limited) which is yet to launch its services commercially in India, has reported a net loss of Rs 10.51 crore for the year ended March 31, 2014, as compared to Rs 5.80 crore loss in the previous year.
The total revenues were at Rs 0.04 crore for the year, down from Rs 0.05 crore in the previous year.
For the six month ended March 31, 2014, Reliance Jio reported a net loss of Rs 6.45 crore and total revenues of Rs 0.02 crore, as compared to Rs 2.82 crore loss and Rs 0.03 crore revenues in the corresponding six month period last year.
Delays, Delays and More Delays
It’s worth noting that there are still no signs of Reliance Jio launching its 4G service in India, even after almost four years of securing a pan-India BWA spectrum for Rs 12,847.7 crore & about three and half years after conducting its first field trial at its own campus. Remember that there is just about an year before the BWA rollout obligations kicks in.
As per these obligations, all BWA licensees have to provide street level coverage in at least 90% of the metro service areas and at least 50% of the rural short distance changing areas (SDCAs) by mid-2015 (five years of the effective date), failing which the BWA spectrum provided will be withdrawn by the government.
There was earlier talks of the company launching its 4G services in December 2013, which was then pushed to early 2014 and now to September 2014, as per a source-based ET report. However, we will believe it when we see it.
That being said, Reliance Jio has been piling on infrastructure sharing deals for the past year or so, with the most recent one being an intra-city fibre infrastructure sharing pact with Reliance Communications. This is the third infrastructure sharing deal between RCOM and Reliance Jio Infocomm, after a Rs 1,200 crore fibre optic network infrastructure sharing deal in April 2013 and a Rs 12,000 crore worth tower sharing deal in June 2013. Reliance Jio also has deals with Viom Networks, Bharti Infratel and even its competitor Bharti Airtel.
The company had also won 78.8 MHz spectrum in 1800 MHz in 14 circles for Rs 11,054.41 crore in the recently concluded auctions and had stated plans to address the “expected increase in demand for digital services” and improve its in-building coverage. It plans to offer digital services across various sectors like education, healthcare, security, financial services, government citizen interfaces and entertainment.
Last month, Reliance Jio had also appointed former Yebhi.com Chief Business Officer Nikhil Rungta as its CMO, while former OnMobile CEO Arvind Rao had left the venture after about one and half years with the company.