Archive for January, 2017

42% of Users Have Made Jio Their Primary Data Connection

January 30, 2017

Since Reliance Jio’s launch in September 2016, it has been marching forward in the telecom industry. The brand immediately established itself in the market with its free data, apps, and voice calling services, which provided users the freedom to test the Jio network before subscribing to the brand’s paid services. After the free welcome offer, the telecom operator went on to extend the same services until the end of March 2017 with the Jio Happy New Year Offer. This not only gave users additional time to enjoy Jio’s superior 4G services but also contributed to the brand’s expanding customer base.

Primary data network of several consumers

Recently, research conducted by a consumer mobile analysis application revealed that Jio is now the preferred choice as the primary data network carrier for about 42% of customers. In comparison, other leading operators have only managed to garner less than 18% of consumers each. Apart from this, Jio has also surpassed data consumption rates of incumbent operators by recording an average of 6.54 GB per user. The app attributed this success to Jio’s free offers, which granted users access to free data and applications. Mukesh Ambani led Reliance Jio also became the first telecom provider in India to remove all charges associated with voice calling for a lifetime.

Impact on content consumption

According to the findings in the analysis, the data consumption in metros and non-metros have grown by 6 GB and 5 GB respectively in the past months, owing to the affordable services available across the country. Users have been motivated to adopt these facilities mainly to access platforms like YouTube and Facebook, among other reasons. Reports have indicated that social apps are the most popular amongst consumers. This segment has received a 467% boost. Video streaming apps have also experienced a large demand, with a growth of 336%. The findings of the report even stated that music, sports, and news content consumption has received an impetus since the launch of Jio’s 4G services.

Change in India’s digital scenario

Chief Operating Officer of Smartapp, Gaurav Sarin elaborated on the data consumption habits and usage of users in recent times. According to him, the easy availability of affordable data services could bring about digital transformation in the country on a large scale. This will not only enable a wide segment of the population to access such services but also propel the growth of the government’s Digital India initiative.

Mukesh Ambani led Reliance Jio has starkly transformed the digital sector across India. With its range of achievements since the launch, the telecom operator is now on its way to dominating the market. Its reliable and affordable services have largely affected the data usage habits of millions across the country. The brand now has around 72 million users who access its extensive pool of services on a daily basis.

Summary

About 42% of consumers across India have opted for Reliance Jio as their main data network carrier, according to a report by a mobile analysis app.

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RIL’s ODM Partners to Manufacture LYF Devices in India

January 23, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) joined the telecommunications sector with the launch of Reliance Jio Infocomm. The telecom brand Reliance Jio is now among the leading operators in India offering cost-effective data plans and free voice calls. Jio also offers affordable 4G smart phones under the brand LYF.

LYF products to be made in India

A source close to the company recently revealed to Economic Times that RIL has requested its Taiwanese and Chinese original device manufacturers (ODMs) to conduct the manufacturing process within India. Foxconn was among the ODMs who will now be making LYF-branded products like home automation devices, smart set-top boxes, and other automobile telematics devices in India. This move has been agreed upon in a contract with RIL’s ODM partners, wherein everything, right from locally developing to assembling the products will happen in India.

RIL’s partnership with ODMs

Foxconn, the largest contract manufacturer in the world, had partnered with Reliance Retail for the manufacture of VoLTE-enabled 4G smart phones under the brand LYF. However, on the basis of the contract’s clause with RIL, Foxconn will now commence production of the handsets in India. Since the manufacturing process will use local resources, the cost of the LYF devices will also reduce considerably.  For people to completely embrace 4G services, it is important to ensure that devices compatible with the network are made affordable and accessible. This is what RIL intends to do in order to draw customers to Jio network. Although Foxconn will be producing the devices in India, another source stated that the volume of LYF smart phones to be manufactured is still being planned.  Apart from Foxconn, RIL’s retail arm, Reliance Retail has collaborated with various ODMs including CK Telecom, ZTE, Tinno Mobile, and Wingtech to manufacture portable Wi-Fi devices and 4G-VoLTE smart phones.

Jio’s automobile telematics venture

After its successful foray into the telecommunications industry, RIL’s telecom arm, Jio will be targeting car owners by introducing its range of automobile telematics devices. Such devices are capable of performing various functions like sending alerts to the owner regarding the battery or fuel, controlling certain movements of the vehicle, and even facilitating Wi-Fi access in the car. The device is designed to work in conjunction with a mobile app for efficiency. Jio’s device will be priced around Rs. 2,000 and the telecom brand has communicated with several automobile companies regarding the its launch. Although the product will be manufactured in China initially, Jio has requested its vendor to commence the production process of the same in India after the device’s initial launch.

Reliance Jio’s FTTH service

Mukesh Ambani led Reliance Jio is also conducting the pilot run of its fiber-to-the-home (FTTH) project across cities like Mumbai and Delhi. Users opting for the service will receive routers, Power Line Communication (PLC) devices, smart set-top boxes, and a JioMedia share device along with their subscription. These products will enable customers to enjoy benefits like Video on Demand (VoD), JioCloud facilities, and High Definition (HD) TV services.

Apart from these services, Jio will also be introducing various home automation and home surveillance offerings like Smart Plugs, smart locks, smart cameras, smart doorbells, chime alarms, and a range of other items, which could be controlled from a user’s smart phone.

Summary

Reliance Industries Limited has requested its ODM partners to commence manufacturing LYF devices in India.

Jio Set to Enter the Automobile Telematics Industry with the Launch of a New Device

January 20, 2017

Mukesh Ambani led Reliance Jio’s 4G services have garnered a positive response across the country, with the brand drawing close to 72.4 million customers on its network. The telecom operator, however, intends to keep up the progress and continue to develop its services. Jio will now be making a foray into automobiles telematics by launching a device, which will be capable of sending alerts to the driver and controlling certain functions of a vehicle.

Device to control functions in car

The device to be launched by Jio could update the driver about details like battery and fuel with the help of a mobile application. The device will also have a host of other features. It would be capable of immobilizing a car during a theft, creating Wi-Fi access within the vehicle, locating its whereabouts, and even alerting the car’s owner about movements. Additionally, the owner will be able to control the car’s AC from any remote location and also receive information on how the driver is steering the vehicle. As per an industry source, the device will function on a Jio SIM card.

Jio has already initiated preparations for the device’s launch by talking to several automobile companies.  As per a source, the expected price of this Jio device will either be the same as the brand’s Rs. 2,000 worth portable Wi-Fi device or lesser than that. However, various other factors are also likely to determine its pricing.

Manufacturing of the device

Initially, the hardware device is expected to be imported from China. However, Jio itself has internally developed the mobile app as well as the device. Jio’s device vendor will be manufacturing more of these devices in India post the initial roll-out.

About the JioHealthHub app

Recently, Jio launched its health and fitness app called JioHealthHub. This app will allow users to keep a check on their health by uploading data concerning their health. Additionally, they could share their lab reports, medical bills, and prescriptions with family members and care providers. Users would be able to maintain their personal medical profile as well and gain access to their health charts.

Jio has partnered with several hospitals and labs for this app. Therefore, through this app, users are able to gain access to information concerning their specific test reports for reference at any time. To further enhance the functionality of the app’s health charts, Jio will be adding more support in order to track several parameters. As per Google Play data, JioHealthHub has already witnessed around 5,000 to 10,000 downloads.

Mukesh Ambani led Jio is currently offering free data services and apps through the Jio Happy New Year Offer until 31st March 2017. Apart from JioHealthHub, the brand also has a range of other applications like JioMoney and JioMusic. JioMoney allows users to make cashless transactions, while JioMusic facilitates live music streaming and downloading.

Jio is also testing its fiber-to-the-home (FTTH) services in a pilot test across cities like Mumbai and New Delhi. Through this service, customers may enable home surveillance, utility management, and entertainment in an automated way.

Summary

Reliance Jio is set to launch a device, which could control various functions of a car, send alerts to the owner, locate the car, and even safeguard it during thefts.

Reliance-Sibur JV Plans to Set up South Asia’s first Halogenated Butyl Rubber Unit at Jamnagar

January 18, 2017

Reliance Industries Limited (RIL) and Russian petrochemical giant SIBUR signed an MoU at the recently-concluded Vibrant Gujarat Summit at Gandhinagar to set up South Asia’s first butyl rubber halogenation unit at RIL’s integrated petrochemical site in Jamnagar, Gujarat.

The unit will produce 60,000 MT of halogenated butyl rubber every year under Reliance Sibur Elastomers Private Limited (RSEPL) – a joint venture (JV) of which RIL owns 74.9%, and SIBUR 25.1%.

Apart from the planned halogenation unit, the JV owns a 1,20,000 MT per annum butyl rubber plant, currently under construction at the same venue which will provide the necessary butyl rubber feed to the halogenation unit.

Commenting on the halogenated butyl rubber unit, Mr Nikhil Meswani, Executive Director, RIL, said, “RSEPL’s halogenated butyl rubber plant will be well-poised to capitalise on the significant surge in regional demand in tyre and pharmaceutical industries. India is expected to see a quantum jump in tyre production, with Indian and International tyre majors gearing up to make capital investments of Rs. 15,000 crore. The halogenated butyl rubber demand is expected to grow at a rapid pace of 8- 10% CAGR over the next few years, driven by increasing customer preference for tubeless tyres in India and neighbouring countries, and significant investments in the manufacture of pharmaceutical closures and tank inner liners.”

“India offers attractive investment opportunities given the growing local demand for synthetic rubbers and Gujarat’s favourable investment environment coupled with the well-developed infrastructure and raw material availability at a world-class Industrial site owned by RIL. SIBUR has a long track record of successful cooperation with RIL and Gujarat’s government, which has provided us with a solid basis for expanding our footprint in India,” said Mr. Dmitry Konov, Chairman of SIBUR’s Management Board.   Halogenated butyl rubber is a key ingredient for manufacturing inner liner of tubeless tyre. With the Indian automobile trend aligning with global trends, penetration of tubeless tyres is expected to accelerate in the Indian market, resulting in an increased demand of halogenated butyl rubber. The ingredient is also used in the manufacture of pharma stoppers, inner liner of storage tanks, etc.   Construction of the butyl rubber plant is in full swing at Jamnagar, its commissioning targeted for 2018.

Production from RSEPL will substitute imports and reduce outflow of valuable foreign exchange from India, providing impetus to the government’s Make in India initiative.

RSEPL is a joint venture formed between Reliance Industries and SIBUR in February 2012 to produce 1,20,000 tonnes of butyl rubber per year at RIL’s integrated petrochemical site in Jamnagar, India. RIL owns 74.9% stakes, and SIBUR 25.1% in the joint venture.

About Reliance Industries Limited (RIL): 

Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 296,091 crore ($44.7 billion), cash profit of INR 40,737 crore ($6.1 billion), and net profit of INR 27,630 crore ($4.2 billion) for the year ended March 31, 2016.

Mukesh Ambani led RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 215th in terms of revenues, and 126th in terms of profits. RIL ranks 238th in the Financial Times’ FT Global 500 list (2015) of world’s largest companies. RIL ranks 121st on the Forbes Global 2000 list (2016), continuing to be the top-ranked Indian company. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

About SIBUR:  

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. It owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.

SIBUR operates 26 production sites located all over Russia, serving over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 75 countries worldwide, and employs over 27,000 personnel.

Summary:

Reliance Industries and SIBUR have planned to set up South Asia’s first halogenated butyl rubber unit at Jamnagar.

Third Quarter Standalone Net Profit of RIL Increases by 10%

January 17, 2017

The standalone net profit for Reliance Industries Limited (RIL) for the quarter that ended in December 2016 has seen an increase by 10%. This has been attributed to the company’s impressive performance in the refinery sector. Owing to this RIL’s standalone net profit for the third quarter went up to Rs. 8,022 crores.

RIL’s gross refining margin

The company recorded an impressive performance mainly because of its gross refining margin, which is what remains after deducting the value of petroleum products and crude oil price from a refinery. Reliance Industries Limited surpassed market expectations by recording a gross refining margin of $10.8 per barrel.

After the net profit was announced, Managing Director and Chairman of Reliance Industries Limited, Mukesh Ambani stated that a lot of credit goes to the well-planned strategies of the company. According to him, the company lays special emphasis on the operations and holds a strong portfolio, which enables it to work towards the best interests of the country. Mukesh Ambani believes that although the market is competitive, these factors have helped the company stand apart from competitors.

RIL’s growth

Mukesh Ambani also stated that the demand for transportation fuels across the globe has led to the refining sector making considerable progress with regard to the gross refining margin in eight consecutive quarters. In the same statement, he spoke about the company’s commissioning of the Paraxylene plant’s first phase.  According to him, the Paraxylene project has helped the company strengthen the operations of its refining and petrochemicals business. He added that Reliance Industries Limited’s strategy for development is based on providing sustainable returns to the company’s shareholders through high-return projects, which are capable of facilitating growth.

Net profit and revenue garnered

Reliance Industries Limited’s standalone revenue for the third quarter increased to Rs. 66,606 crore, which is a rise by 9%. The company also achieved a better turnover than the previous year by garnering Rs. 84,189 crore. This is seen as a rise by 16.1% compared to last year. Additionally, RIL’s cumulative net profit also went up by 3.6% than the previous year for the quarter which ended in December 2016.

The results regarding the net profit were revealed after the Indian equity markets closed. RIL’s telecom arm, Jio has also emerged as a leading operator in the market with its 4G services. To support the growing subscriber base, Jio will be investing an additional Rs. 30,000 crore to improve the network’s coverage and reach across the country. The finance for the same will be provided mainly through an equity funding by a rights issue.

Summary

The standalone net profit of Reliance Industries Limited increased by 10% in the third quarter. The company also announced that Jio is among the operators having the widest 4G network in the country.

Jio Plans to Extend its Network Capacity with an Investment Worth Rs. 30,000 Crore

January 16, 2017

Mukesh Ambani led Reliance Jio has made it to the list of India’s top telecom operators within a few months of its launch. It has not only delivered quality services but also managed to surpass industry standards with its massive subscriber base. The operator intends to keep up its performance by improving its network capacity and expanding coverage. For this, Reliance Jio will be investing a whopping Rs. 30,000 crore. This new investment will make the total investment towards Jio Rs. 1.9 lakh crore.

Investment to develop infrastructure

In a rights issue notice that Jio announced for its existing shareholders, the telecom operator stated that since Jio received a highly positive response to its 4G services it would be beneficial to invest further towards the development of the brand. According to the company, the large-scale demand for 4G services in India is also one of the main reasons to improve Jio’s infrastructure through investments.  Jio added that the finance for the same will be acquired through an equity offering to strengthen the company’s balance sheet. As per the notice, Jio’s board of directors will be making a rights issue worth Rs. 6 billion.

Jio’s subscriber base to increase – JP Morgan

According to an analysis by JP Morgan, Jio will witness steady development in the upcoming months, with its subscriber base set to increase towards the end of FY17. The brand launched its services with the welcome offer that provided customers with unlimited data and app services for three months. This managed to help Jio draw a large number of users to its network. After this promotional deal expired in December 2016, the telecom operator introduced the Jio Happy New Year Offer, which allows users to continue enjoying the free data services and premium applications until 31st March 2017. The company aims to expand its reach and garner close to 100 million customers by the time the Jio Happy New Year Offer ends. The telecom operator has already secured 72.4 million users and as per JP Morgan, the brand is not far from attaining its 100-million target.

Jio’s services

After the free offer ends, customers may opt for any of Jio’s affordable data plans. Customers could select monthly plans like the Rs. 149 package or the Rs. 499 package. Depending on budget preferences, users are free to choose from different plans. The report by JP Morgan revealed that Jio’s free data offerings and affordable tariff plans have led incumbent operators to reduce their data prices as well. The report by JP Morgan stated that Jio’s future growth is also dependent on the number of users who decide to become paid subscribers even after the free offer ends. A recent survey conducted by Bank of America Merrill Lynch revealed that around 85% users will most likely continue as paid customers on the Jio network.

Summary

Reliance Jio will invest an additional Rs. 30,000 crore towards expansion of its network infrastructure.

Jio Users can Opt for Booster Pack after Crossing 1 GB Limit on Free Offer

January 9, 2017

The welcome offer by Mukesh Ambani led Reliance Jio expired on 31st December 2016. Thereafter, the telecom operator introduced the Jio Happy New Year Offer. This offer is valid until the end of March 2017. Jio customers can enjoy free data services a range of premium Jio applications under this offer. Additionally, users have the added benefit of enjoying free voice calling facilities for a lifetime.

About Jio’s booster pack

The Jio Happy New Year Offer has a data limit of 1 GB per day. However, users can avail of either of the two booster packs under the MyJio app. This will give users the flexibility of opting for a data pack once they have exhausted the 1 GB data limit on the promotional offer. Users who choose the Rs. 51 data pack will receive 1 GB of extra data per day. Those who pick the Rs. 301 plan will get 6 GB of data, which will be valid for 28 days. In addition to data services in India, Jio has introduced international call services for customers. The ISD combo pack offered by Jio costs Rs. 501, where customers receive the balance of Rs. 435 to make ISD calls. The validity of this pack is 28 days. In terms of messaging services, Jio users can send 100 free text messages each day.  Once this limit is reached, customers can opt for a Rs. 20 recharge, which will grant them a balance of Rs. 175 for sending domestic as well as international messages. For messages sent within India, users will be charged 85p per message. On messaging international contacts, customers will be charged Rs. 5 per message.

Choosing a plan from the booster pack

Users who wish to avail of this pack must download the MyJio application. Thereafter, they should log in through their Jio ID. Once this procedure is complete, they may open the MyJio tab and click on the Recharge option. Under the Browse Plans section, users can view the Booster tab, which will enable them to select a plan of their choice. Payment for the recharge may be made through either JioMoney or any other banking mode.

A survey conducted by Bank of America Merrill Lynch revealed that more than 85% of existing Jio customers will retain their connection post the expiration of the Jio Happy New Year Offer. The company commissioned SurveyMonkey to record the responses of more than 1,000 users through an online survey. According to the survey, users opted for Jio, mainly because of its superior Internet speeds. Some respondents also stated that they were motivated to choose Jio because of its free content. A significant percentage of users are ready to opt for the 4 GB data pack, priced between Rs. 400 and Rs. 500. About 12% of users revealed that they would most likely choose larger data packs even if they had to spend a little extra for the same. Another major finding stated that more than 72% of Jio users were satisfied with the quality of the voice calling services.

Summary

Mukesh Ambani led Reliance Jio introduces booster pack for users who wish to avail of extra data after reaching the 1 GB limit on the free offer.

Everything that Customers Need to Know about the Jio Happy New Year Offer

January 2, 2017

The telecom arm of Mukesh Ambani led Reliance Industries Limited (RIL), Reliance Jio, is one of the leading operators in India. Only a short while after the launch of its high-speed 4G services in September 2016, the brand achieved widespread success by garnering a large user base. The welcome offer introduced by Jio managed to give users across the country an opportunity to experience high-speed 4G services for free. This offer spanned across a period of three months, with 31st December 2016 being the last day of its validity.

Services available under the new offer

However, Jio intends to give customers access to free data and a range of applications for a longer period of time, which is why it launched the Jio Happy New Year Offer. Chairman and Managing Director of Reliance Industries Limited (RIL), Mukesh Ambani, announced that this offer will be valid until March 31st, 2017. As per the offer, users will be able to enjoy services like messaging, video calling, voice calling, apps, and other data facilities for free. There is only one significant change in this offer. While the earlier welcome offer had a Fair Use Policy (FUP) limit of 4 GB, the new offer has the limit of 1 GB. This move was taken to reduce network congestion and improve the digital experience for all Jio users. So now, after users reach the limit of 1 GB, their speeds will reduce to 128 Kbps. However, if individuals wish to use more data than the set limit, they can avail of 1 GB data per day with a data recharge of Rs. 51. Additionally, users can opt for the 6 GB plan that costs Rs. 301, with a validity of 28 days.

Benefits to customers

Mukesh Ambani announced that all existing Jio customers, as well as those who apply for new Jio SIM cards, will be able to enjoy the benefits of the Jio Happy New Year Offer.

Mukesh Ambani also spoke about his dreams for a digitally-enabled India at an event. He spoke about the brand’s success in terms of garnering users. Mukesh Ambani also made references to incumbent operators’ uncooperative behavior. According to him, Jio’s new offer also adheres to all the rules set by the Telecom Regulatory Authority of India (TRAI).

Besides the Jio Happy New Year Offer, customers will also be able to derive long-term benefits since Jio has made voice calling and messaging services free for a lifetime. Apart from efficient data services, Reliance Jio also offers portable Wi-Fi devices and LYF smart phones. The company is also gearing up to launch its own range of feature phones. These devices will be 4G-LTE compatible and affordable, which will help Jio reach out to customers in the rural market.

Summary

Jio Happy New Year Offer will allow individuals to avail of free data and app services even after expiration of the older welcome offer.