The telecom company announced recharge facility at the ATMs of some of the banks.
Airtel and Jio will continue to gain market share due to Voda Idea's worsened financial health, Axis Capital says.
The three networks have varied plans across price ranges, we've put together the best plans under Rs 700.
In terms of service quality of mobile networks, Bharti Airtel has outperformed its rivals, Vodafone Idea and Reliance Jio, in four out of five metrics, according to a study.
Jio has come out with an yearly plan, giving 360 days of validity. Earlier, the telco had withdrwan its Rs 2020 plan and instead brought a Rs 2121 plan with lower validity.
Jio has developed its own 5G and other technologies, to cut costs and reduce dependence on foreign vendors.
Reliance Jio has recently introduced two new plans priced at Rs 49 and Rs 69 which come with 14 days of validity and offer 2 GB and 7 GB data respectively. Jio has also tweaked its long term Rs 2020 plan which is now priced at Rs 2121 that has a validity of 336 days against 365 days of Rs 2020 plan.
Jio's special work from home plan has 2GB data per day on offer. It is valid for a period of 51 days. A point to note is that this plan only offers customers internet services, and doesn't not provide any call or SMS benefits. Consumers will avail high-speed data up to a total usage limit of 120 GB.
The country’s top three mobile operators are busy thrashing out a secure but totally contactless digital customer acquisition process to arrest a sharp fall in mobile connections sales amid the Covid-19-induced lockdown.
Mukesh Ambani-led Jio added a modest 82,308 mobile users, taking its subscriber base past 370 million in December, way below the 9.1 million and 5.6 million customer-adds reported by the company in October and November respectively last year.
“If concerns around Covid-19 lead to material impact on consumers’ ability to spend (especially daily wage laborers), then we see risks of tariff hikes being pushed back and magnitude being lower,” brokerage firm BofA Global Research said in a report.
Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm may roll out ‘cells on wheels’ (CoWs) to ease network congestion amid an upsurge in home internet and video services consumption because of lockdowns.
Such a move would be a more pragmatic way for Reliance Jio to overcome any potential gear procurement constraints.
“It’s of paramount importance that at this crucial juncture we come together as an industry to serve the nation and prepare ourselves for any kind of exigency,” Airtel wrote in a letter to Jio, Vodafone, BSNL and MTNL on Monday. Airtel has assigned chief technology officer Randeep Sekhon as points-person to coordinate efforts regarding this.
Washington in the past has put pressure on New Delhi to keep China's Huawei out of the India's 5G deployments. The Indian government, however, has allowed Huawei and ZTE, another Chinese company, to participate in 5G trials. New Delhi will take a separate call on allowing Huawei to participate in the commercial deployments of the next generation technoligy in India.
Representatives from industry bodies like COAI and Tower and Infrastructure Providers Association (TAIPA) as well as telecom operators like Bharti Airtel, Vodafone Idea, Reliance Jio and state-owned telcos attended the meeting called by senior telecom department officials.
According to the latest report, Jio pipped its nearest rivals Bharti Airtel and Vodafone who recorded an average download speed of 8 mbps in February.
The Mukesh Ambani-owned company has replaced Nokia’s and Oracle’s 4G voice technology with its own, a senior company executive said. The move is perhaps a global first, analysts said, where a mobile phone company has developed in-house technology to replace third-party equipment vendors.
Stating that the AGR issue "could create a duopoly structure," Morgan Stanley said: "The Supreme Court has not relented on the AGR dues, which makes matters worse for VIL. Airtel and RJio are well-placed thanks to strong balance sheets and could gain market share."
Last week, Reliance Jio had announcd a long-term plan of Rs 2121. With validity of 336 days, it is Jio's costliest plan yet and offers 504 GB of data. It offers unlimited calls to Jio numbers, complimentary access to Jio apps, unlimited SMS (100 per day), and 12000 minutes of calling to non-Jio numbers.
A combination of reduced AGR dues and easier repayment terms on the back of recent tariff hikes, brokerage CLSA said, could send growth revival signals and encourage VIL’s promoters to reassess their stance of ‘no equity infusion’ to bolster the struggling telco’s financial position for competing more effectively with Bharti Airtel and Reliance Jio Infocomm.
Cos’ work from home initiative likely to boost data usage, push demand for home broadband, VPN
The Department of Telecom's calculations put Bharti Airtel's dues at Rs 37,700 crore and Vodafone Idea's dues at Rs 53,000 crore, but both operators believe their dues are almost half of what the DoT claims.
Till now, Jio has been depending upon 4G voice technology supplied by Oracle and Nokia. According to a company exec, Jio has already replaced Orclae and Nokia techs with its own in an effort to cut reliance on foreign third-party suppliers.
“RCom in accordance with the stipulations contained in Regulation 30 of the SEBI ....hereby informs ...that resolution professional of RCom has duly filed the resolution plan as approved by the CoC with the... NCLT, Mumbai Bench on March 6, 2020 in accordance with Section 30(6) of the Insolvency and Bankruptcy Code, 2016,” said the company.
Vodafone Idea flagged the "deep financial distress" in the telecom sector, reflecting in unprecedented decline in revenues. Over the last three years, half a dozen operators have exited by either merging their businesses with existing Telecom Service Providers (TSPs) or declaring bankruptcy, Vodafone Idea Ltd (VIL) rued.
While Airtel and Vodafone Idea want a cost-based methodology to arrive at a floor, Jio said that it must be determined on headline tariffs rather than realised tariffs. Bharti Airtel recommends fixing a floor for data services for two years by three possible approaches. Reliance Jio said that tariffs must not be hiked abruptly as it may dampen usage considerably.
The Department of Telecommunications received about Rs 8,000 crore from telcos, with Vodafone Idea (VIL), Bharti Airtel and Reliance Jio paying for airwaves bought in the 2014 auctions, and Tata Teleservices paying Rs 2,000 crore towards adjusted gross revenue (AGR) dues.
Sources said that while Bharti Airtel has made payment of Rs 1,950 crore to the Department of Telecommunications towards deferred spectrum dues, Reliance Jio has paid Rs 1,053 crore. Vodafone Idea too paid about Rs 3,043 crore towards deferred spectrum dues, as per the sources.
The comments come amid continuing call drops being experienced by subscribers across the country.
Reliance Jio has rolled out voice over WiFi (VoWiFi) calling service for its subscribers in multiple circles, including Delhi-NCR and Chennai, following a limited launch by Airtel in December 2019.
"Tata Teleservices Limited (TTSL) and Tata Teleservices (Maharashtra) Limited (TTML) have made a payment of Rs. 2,197 crore to the DoT towards License Fees and Spectrum Usage Charges," the company said. According to the government, TTSL owes Rs 13,823 crores as license fee, spectrum usage charge along with interest, penalties and interest on penalties.
Kotak Institutional Equities said that Facebook’s reported interest may be driven to enhance addressable opportunity in its largest market in terms of subscriber base.
The Mukesh Ambani led telco’s dues are a fraction of what its rivals - Vod Idea and Airtel - have to pay.
The Department of Telecommunications (DoT) will hold a meeting on February 20 with telecom operators and telecom equipment vendors to discuss a road map for 5G field trials in the country.
The Mukesh Ambani-led Jio, which had started a tariff battle in the sector with its entry in 2016, has increased its headline price plans for the first time since its launch. Its two older rivals had raised their prices earlier this week, also by about 40%.
Reliance Jio’s ‘2020 Happy New Year Offer’ is available for both smartphone and JioPhone customers. For smartphone users, Jio is offering unlimited voice, 1.5GB daily data, SMS, and access to Jio apps. The validity of the scheme is 365 days.
Carriers including Bharti Airtel and Vodafone Idea, along with Tata Teleservices, Telenor, Aircel and Reliance Communications, have to pay Rs 1.47 lakh crore to the government at the earliest, after the Supreme Court came down heavily on the companies for not paying by the deadline it had imposed.
An unbargained-for situation awaits Airtel, contrary to the widespread view that Voda Idea's fall will aid it.
The tussle between the regulator and operators, weighed by huge debt and facing new adjusted gross revenue dues, over base price has been on since telcos said they cannot buy airwaves at Trai's given prices.
"The licensee may opt to defer the spectrum auction instalment due for 2020-21 and 2021-22, either for one or both years. The deferred amount will be equally spread over the remaining instalments to be paid, without any increase in the time specified for making the instalment payments. Interest shall be charged to protect the NPV of the payable amount," DoT said.
Jio said that it will raise tariffs in next few weeks, following steps of its competitors Airtel & Voda Idea.
For a sector nervous over the coming AGR blow, Sitharaman's Budget has obfuscated matters even more.
The Mukesh Ambani-owned telco yesterday unveiled revised tariffs, which were as much as 40% costlier.
New customers are now being billed, and old customers have been told to choose one pack or another.
After Vodafone Idea and Bharti Airtel, Reliance Jio too has announced to hike its tariffs by about 40 per cent.
Jio's dues will need to pay will include those on RCom’s spectrum that was part of the 2016 trading deal.
The Ahmedabad-bench of National Company Law Tribunal (NCLT) had earlier this year granted permission to the composite scheme of arrangement, through which two companies were proposed to be demerged -- Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd. This was opposed by the IT department by challenging it before the NCLAT.
Reliance Jio has become the largest telecom player with 36.9 crore mobile subscribers in November 2019, according to the data published by telecom regulator Trai this month.
Crying Foul After consumer group accuses Vodafone Idea and Bharti Airtel of wilfully disobeying SC orders, with COAI playing a part, COAI says petition is only looking to create problems. Airtel and Voda Idea have missed the Jan 23 deadline to pay dues to the government based on an expanded definition of adjusted gross revenue, as ordered by top court.
New Delhi wants nearly $21 billion in back license fees and spectrum usage charges, including penalties, interest.
While Airtel and VIL raised their prices by 40%, Jio came out with a revised plan few days later but up to 25% lesser.
Under the Diwali offer, the teleco is offering its JioPhone for just Rs 700 along with benefits of Rs 700
Both Vodafone Idea and Airtel have submitted their applications with Ericsson, Nokia, Huawei and ZTE, while Reliance Jio has submitted an application for trial with Korea’s Samsung, which is also the sole gear vendor for its pan-India 4G network. State-run telco BSNL, on the other hand, has submitted the application with ZTE only for trials.
Last month, Telecom Minister Ravi Shankar Prasad had said the government will allocate airwaves to all telecom service providers for conducting trials of super-fast speed 5G network. India will not bar any equipment suppliers in the upcoming trials for 5G.
Bankers have named Jio as the preferred bidder for the tower and fibre assets housed in Reliance Infratel, while UVARCL will acquire the spectrum of RCom and its subsidiary Reliance Telecom. The combined offer from UVARCL and Jio is higher than the offer from Bharti Airtel — which had an NPV of Rs 8,500 crore.
The reduction in mobile number portability (MNP) is good news for telcos since it means they have to invest less in trying to retain existing customers, said industry executives and analysts. MNP fell to 4.1 million in October last year from 5.4 million in the previous month, and the MNP churn rate dipped to 0.3% from 0.5% in September.
Billionaire Mukesh Ambani's Reliance Jio on Wednesday slammed telecom industry body COAI for its "threatening and blackmailing" tone in its communication to the government on non-existent crisis in the sector following the Supreme Court ruling on payment of statutory dues. Jio said it disagrees with the "threatening and blackmailing tone" of COAI and accused the older operators of not investing sufficiently in the sector and "shedding crocodile tears" by claiming financial stress.'Airtel, Vodafone Idea shedding crocodile tears': Reliance Jio to COAI
Even with a tariff hike of 40%, Jio would be cheaper by 15-20% than its rivals, analysts firms say.
Reliance Communications, which is undergoing insolvency proceedings, has put all its assets for sale, which include spectrum holding of 122 MHz that the company before insolvency proceedings estimated to be around Rs 14,000 crore, tower business worth Rs 7,000 crore, optical fibre network worth Rs 3,000 crore and data centres worth Rs 4,000 crore.
The bids have offered very little upfront cash or are unworkable in the current form, said bankers.
The company, which had earlier issued special plans for smartphone users, has come out with four new monthly plans in the range of Rs 75 to 185 with 500 minutes of talk time for calls made to other networks.
The decision will enable India to test the promise made by China that it will not open back doors.
Morgan Stanley in its analysis based on Telecom Regulatory Authority of India’s (TRAI) data said that Jio’s monthly wireless broadband subscriber additions of 9.1mn in October were higher than its monthly addition run rate of 8mn in H1F20, primarily aided by JioPhone Diwali offer.
The answer is yes, if Vodafone Idea doesn’t get relief on its AGR dues from the government or judiciary. Especially as there has been a steady fall in the company’s customer and revenue shares amid lower comparative 4G capex spends.
Reliance Jio Tuesday said that it will raise tariffs in the next few weeks, following the steps of its competitors Bharti Airtel and Vodafone Idea, in a move that will help the industry in revenue recovery after years of a price war.After Airtel & Voda-Idea, Reliance Jio to hike mobile tariffs in few weeks
The DoT is currently "examining" the replies given by the state-owned non-telecom corporations on AGR dues.
The stock quoted a 52-week high of Rs 566.7 and a 52-week low of Rs 264.29.
The country's top operators are busy thrashing out a secure, but totally contactless digital customer acquisition process, to arrest a sharp fall in connections sales.
The recent Supreme Court verdict adversely hit Vodafone Idea and Airtel, which backed the government’s wider definition of adjusted gross revenue (AGR), and face statutory dues of Rs 53,039 cr and Rs 35,586 cr respectively. They need to pay up in just over a month from now.
Bharti Airtel chairman Sunil Mittal, welcomes TRAI’s move to begin discussions on setting a floor price for data and voice tariffs, adding he hopes for a 'legal' relief. Even experts say regulatory steps will be of much help to telcos. Airtel, Vodafone Idea and Reliance Jio have sought a floor for data tariffs, but don't want voice to be regulated.
Bankers said the experience in RCom resolution makes lending to telecom companies more and more difficult in the future because there is no guarantee of recovery. Banks will now have to think twice before lending to these companies or we have to take 100% loan loss provisions. This case is a test for lending to telecom companies and will lead to banks learning many lessons.
Ahead of the decision by Trai, Jio increases ring time for outgoing calls to 25 seconds from 20 seconds.
Brokerage CLSA said Jio’s 28-day and 84-day prepaid plans, offering 1.5 GB of data a day are 20% and 7% cheaper than Bharti Airtel and Vodafone Idea’s latest comparable offerings. Centrum backed the view, saying Jio’s plans across price-points remained the most attractive despite material increases in the tariff plans.
"The bulk of responses have already come in through written comments, and additional inputs, if any, can be given via suitable alternates like an online or electronic open house forum, in case TRAI wants. Floor price is a pressing need of the industry," COAI Director General, Rajan Mathews said.
The comments come on the back of an ET report which cited government officials as saying that mobile internet usage increase is not as high as what the telcos were claiming them to be. Telcos had sought additional airwaves to cater to the surge in demand.
Airtel alleged that "one large 4G-only operator" has slashed ring time for outgoing calls to other networks.
In the April-June quarter, Vodafone Idea had reported a 4.3% sequential fall in revenue, which dipped below Jio's for the first time.
Telcos could each take a 1-1.5% one-time hit on revenue if they waive call charges for migrant labourer users.
The Telecom Regulatory Authority of India (Trai) has rejected telcos' call to hold open house discussions (OHD) on floor pricing of services through an online mechanism amid the Covid-19 pandemic.
Government estimates up to 50-bps hit in FY21, economists see deeper impact caused by the coronavirus outbreak.
Jio currently has three similar plans: Rs 199 with 28 days validity, Rs 399 with 56 days validity and Rs 555 plan with 84 days validity. Though priced slightly lower, all these plans offer 1.5 GB data per day only. Airtel on the other hand offers Rs 249, Rs 279, Rs 399 and Rs 598 plans that offer 1.5 GB data per day along with unlimited calls and 100 SMS per day.
Rajan Mathews, director general of the Cellular Operators Association of India (COAI), which represents Jio, Airtel and Vodafone Idea, said the telcos “were likely to consider the request” as they have always put the interest of their customers first.
Reliance Industries Ltd (RIL) on Friday said it will set up a new subsidiary to bring all its digital initiatives and apps under a single entity, and infuse Rs 1.08 lakh crore equity into this new unit. The new structure is similar to those adopted by tech titans globally, and will offer a compelling investment proposition to strategic and financial investors, many of whom have evinced strong interest in partnership, the company said in a statement, adding that this will also create the largest digital services platform company in India.Mukesh Ambani wants to make Reliance Jio "virtually net debt free" by March 31, 2020
Vodafone’s 4G download speed dipped considerable from 7.7 Mbps in August to 6.9 Mbps in September. Idea’s speed on the other hand witnessed marginal improvement in the same duration from 6.1 Mbps to 6.4 Mbps.
Debt-ridden Vodafone Idea has proposed that the minimum price of data should be fixed at Rs 35 per GB, Bharti Airtel has proposed minimum price of Rs 30 per GB for low data users and Reliance Jio wants it to be hiked gradually to Rs 20 per GB.
Experts though have called on the government to consider a three-month moratorium on operators’ revenue-share commitments for the April-June quarter FY21, which would be more significant relief for the debt-laden telecom sector that is currently reeling under the impact of the adjusted gross revenue (AGR) payments crisis.
Airtel and Vodafone Idea have ended their Rs 169 and 199 plans that offer 1GB and 1.5GB data per day, respectively, for 28 days. Airtel will provide access to its premium content on Airtel Xtream.
Bharti Airtel lost more than 5 lakh subscribers, which dragged its overall subscriber base to 327 million. Vodafone Idea lost over 4.9 million subscribers, pulling down its total subscriber base to 375 million in August.
Telco’s bundled recharge packs now start at Rs 98, Rs 19, Rs 52 plans removed after IUC recovery bid
In a letter dated March 23, the Department of Telecommunication (DoT) had said, “Due to unforeseen situation in wake of COVID-19, it has been decided that the audit process conducted by LSA field units in respect of EMR (electromagnetic radiation) and CAF (subscriber verification) shall be kept in abeyance till 31.03.2020.”
The three private telcos have obtained approvals from the DoT to ensure critical workers manning their NoCs – the brains of any mobile communications network – can freely travel amid the pandemic-induced countrywide lockdowns to resolve network-related glitches at a time when bulk of corporate staff across India is working from home.
The honeymoon for telecom subscribers seems to have come to an end as all the three private telecom players -- Vodafone Idea, Bharti Airtel and Jio -- on Sunday announced pre-paid tariff plans with 40-50 per cent higher rates.Low tariff regime over, telcos up rates by 40-50%
“There have been no notices sent to telcos on their AGR payments or any discussions on it. Now, the focus of the Department of Telecommunications is on how to ensure smooth running of operations during the coronavirus pandemic,” said a government official who did not want to be identified.
Reliance Jio's special work from home plan has 2GB data/day on offer. It is valid for a period of 51 days.
According to senior executives in the sector, letters were sent to the DoT and Trai on Saturday. “Telcos do not want customers getting charged for accessing necessary sites, including government ones or banking sites until restrictions to prevent Covid-19 are lifted,” said a senior telecom executive, who did not wish to be identified.
“It is of paramount importance that at this crucial juncture, we come together as an industry to serve the nation and prepare ourselves for any kind of exigency,” Bharti Airtel said in a joint letter to Jio, Vodafone Idea, BSNL and MTNL on Monday. Airtel said such an exercise would be particularly relevant, where a site is shut or where the TSP is not able to manage the up-time.
With both India Inc and personal holiday goers also likely to postpone international travel in the summer due to the pandemic, telcos will be faced with a further drop in revenue from international roaming, which was a key component of high-tariff customers.
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