Brace yourselves for the sooner-than-anticipated arrival of Reliance Jio 5G services because the 63-year-old billionaire tycoon Ambani recently pledged to the speedy launch of the same.
The oil-to-telecom conglomerate latest quarterly earnings posted a record profit on the back of its consumer businesses and now it is hoping to continue with the same momentum to dominate the 5G telecom services space.
Reliance Industries Ltd’s fiscal third quarter, i.e. October-December net profit beat every street estimate and rose 12.55 per cent YoY to Rs 13,101 crores. In the previous quarter July-September, RIL posted a net profit of Rs 10,602 crores.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said that he is very pleased about Reliance Industries Ltd. delivering strong operational results during the quarter backed by a robust revival in the retail segments and a steady growth in their digital services business.
Currently, the group’s wireless operator Reliance Jio Infocomm Ltd has started advance tests in order to introduce the benefits of the fifth-generation high-speed network to Indian consumers. However, Ambani’s plan to accelerate the process still relies heavily on the availability of spectrum as the Government of India is yet to auction the required airwaves.
Reliance Jio, the RIL’s telecom arm which has close to 411 million users, reported that it is testing the transmission capability speeds via locally developed equipment as of now.
The push form smartphone vendors in India is another reason that has convinced leading telecom players in India ti look out for the early rollout of 5G network. The availability and increasing sales of 5G powered smartphones are clear indication that the market is ready for 5G network. Telecom companies always look to rope in premium customers, and users buying premium smartphones with 5G network capabilities are on the target of telecom companies now. Reliance Jio is well ware about the fact and leaving no stone unturned to expedite the whole process of 5G rollout in India.
There is no doubt that Ambani’s risky bet on consumer services such as telecom and retail seems to be paying off pretty well despite the havoc wreaked by the pandemic and is helping the group to successfully offset the slump they have experienced in its long-standing crude oil refining business.
The latest quarterly results are a testament to Mukesh Ambani’s ability to execute on his grandiose plan to transform Reliance from an energy heavyweight to a technology titan – a pivot that many expected to fail but later saw support from global investors such as Facebook and Google.
Backed by this streak of success, Ambani, who is currently Asia’s second-richest man, in the last month promised that Jio will undoubtedly be the first Indian telecom provider to roll out 5G in the country by the second half of 2021. Jio’s 5G rollout plan aims to lure nearly 300 million users who are still using outdated and older 2G services offered its Jio’s rivals.
Ambani, in a statement about the same, said that Jio will continue to accelerate the roll-out of its digital platforms and 5G stack and make it affordable and available everyone so that it can make India ‘2G-mukt’.
That being said, as mentioned earlier, the 63-year business plan is contingent on the Indian Government’s auction of airwaves – something for which there still doesn’t exist any announcement date or update.
All in all, given that Jio’s parent group is cash-rich and debt-free, the budding telecom giant will be able to offer 5G services at dirt-cheap rates whenever GOI allows it. And most likely, similar to the arrival of its 4G offering in 2016, it will make cheap pricing a core debut strategy for 5G offering as well. We will keep you updated on all future developments. Until then, stay tuned.