There is a huge speculation that Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL) is all set to make new inroads in the broadband internet services space, with the official launch of this service, which would most probably happen towards the end of 2018. Apart from the broadband internet space, the company is also set to make its presence felt in the payments bank and e-commerce space.
Forecast by CLSA India on Reliance Jio’s broadband service
According to a report by Bloomberg, CLSA India, a well-known brokerage firm has stated that with the objective to acquire clients and seek insights with reference to the usage patterns, Reliance Jio has already been providing high-speed broadband as a free service, in a few selected urban areas. CLSA India has estimated that the new broadband service may increase the valuation of RIL, the parent organization, by USD 5 billion. The brokerage firm has further forecasted that this new service offering would boost RIL’s earnings by INR 4,000, which is equivalent to USD 611 million, before amortization, depreciation, taxes, and interest, in three years.
Expectations from Jio Payments Bank
Jio Payments Bank, a 30:70 joint venture between the State Bank of India (SBI) and RIL; started its operations earlier in April 2018. Although there is no complete information about the services offered by the Jio Payments Bank, banking experts are of the opinion that this entity is set to have a strong foothold in the payments bank space. An analyst on the condition of anonymity told Quartz India that although Reliance Jio is a late entrant in most of the industries, it has managed to make a mark for itself. The analyst continued that the same is expected from Reliance Jio in the payments bank space, as it already has a loyal customer base through its point of sales contact and the Jio Money wallet business.
Inroads into the e-commerce market
Reliance Jio is all set to make inroads into the e-commerce market with the help if its subscribers and network. It is reported in order to develop an operational model, which would empower shoppers to purchase at the neighborhood, with the help of its digital coupons, which include text messages and/or the JioMoney platform, Reliance Jio has been working with consumer brands and kirana stores. Under this operational model, the mobile users of Jio will receive digital coupon codes for a particular brand. The users can purchase those brands at their neighborhood stores, by making use of the coupons. Stores registered with Jio will be provided with software on their tablets or phones, in order to read the digital coupons.
Mukesh Ambani featured in the ‘World’s Greatest Leaders of 2018’ list
Mukesh Ambani, the Chairman of RIL has been featured in the Fortune magazine’s list of the ‘World’s Greatest Leaders of 2018.’ The magazine stated that within two years Ambani has provided India with affordable mobile data through Reliance Jio, due to which he is ranked at number 24 on this list.
Summary
Reliance Jio is expected to move ahead in the broadband service, payments bank, and e-commerce space. Mukesh Ambani featured in the ‘World’s Greatest Leaders of 2018’ list.