An analyst at a foreign brokerage said the two may need to infuse Rs 2,500-3,000 crore to meet the leverage level at merger close.
Seen as a highlight of its second successive cut in effective rates in two weeks, the new Jio plan is likely to cause more revenue erosion for rivals.
Jio reported a net profit of Rs 504 crore for the October-December quarter, versus Rs 306 crore by market leader Bharti Airtel.
We will fight aggressively with Jio for market share and our aim is to get a bigger chunk of 4G primary SIM slots on our network, says Airtel CEO.
Telcos feel financial stress levels could ease significantly if the Budget paves the way for cuts in key telecom levies such as SUC and licence fee.
Mukesh Ambani said Reliance would also invest an additional Rs 5,000 crore-plus in the state in non-Jio businesses such as retail and petroleum outlets.
A key issue being debated is whether there is a case for the Scandinavian carrier to seek compensation, citing business losses.
Trai on Friday cut the termination charge for incoming international calls from 53 p/minute to 30 p/minute and said the new rates would be effective from February 1.
“The Cellular Operators Association of India (COAI) is in the process of finalising additional budget-related suggestions, calling for a reduction in overall telecom levies,” one of the persons cited said.
In December, UIDAI suspended Bharti Airtel and Airtel Payments Bank from conducting Aadhaar-based verification of customers following certain complaints.
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