Two years of Jio: How free calls, data catalysed India's digital revolution

When Mukesh Ambani launched Reliance Jio in 2016, the telecom industry was a multiplayer market, consumers were careful about their data usage and very few cared to consume video content on their mobile data network.

Cut to 2018, two years after Jio first introduced free voice calling and months of dirt-cheap data services, content is in demand like never before.

Content provider and OTT services like Amazon Prime, Netflix, Eros Now, Voot, Hotstar, Gaana and Saavn among many others have taken off in a big way.

Global internet giants Facebook, Google and Amazon are prioritizing Indian language services to attract internet consumers in far-flung rural areas who prefer content in local language than English.

“Jio has built a Digital Connectivity Platform of unparalleled capacity and a nation-wide reach. This has enabled Reliance to strategically reinvent itself as a Technology Platform Company,” the company said in a statement on completion of two years.

RCom completes sale of some assets to Reliance Jio for Rs 20 billion

Reliance Communications on Thursday said it has completed the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 20 billion, to Mukesh Ambani-backed Reliance Jio Infocomm (RJIO).

The transaction entailed 248 nodes covering close to 5 million sq. ft. of the area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement.

"Reliance Communications Limited (RCOM) today announced the completion of the sale of its MCNs and related infrastructure assets, worth Rs 20 billion, to Reliance Jio Infocomm," the RCom statement said.

Earlier this month, Reliance Communications had reinstated bank guarantees worth Rs 7.74 billion with the telecom department ahead of the timeline set by the telecom tribunal, and had said that its Rs 250 billion asset sale plans are "on track".

Last year, Anil Ambani-owned Reliance Communications signed a pact with Reliance Jio for sale of wireless spectrum, tower, fiber and MCN assets - the proceeds of which were to be used to reduce debt.

RCom pares morning gains, falls 4% post a 25% rise

Reliance Communications (RCom) pared morning gains to fall over 4% after BSE sought clarification from the company on a nes article titled "NCLT rejects RCom's plea for stay on insolvency order".

Shares of the company had rallied 25% to Rs 20.65 per share on the BSE in early morning trade, surging 108% from its Wednesday’s intra-day low of Rs 9.95 after a media report suggested that the Anil Ambani-led telecom services company and Ericsson inform National Company Law Tribunal (NCLT) in Mumbai that they are in settlement talks.

“The Company is on the captioned subject and wish to inform you that the Company cannot comment on changes in volume and price in the stock market. Appropriate disclosures will be made in accordance with applicable regulations, as and when any disclosable event occurs,” RCom said on clarification with reference to news appeared on ET NOW dated May 17, 2018 quoting " RCom, Ericsson inform NCLT that they are in settlement talks- Rcom, Ericsson request NCLT to keep insolvency order in abeyance"

Jio plans to raise Rs 32.5 bn from Japan's MUFG, Mizuho and Sumitomo Mitsui

Telecom operator Reliance Jio is learnt to be in talks with three Japanese banks to raise $500 million (around Rs 32.50 billion) in debt.

"Reliance Jio is in discussion with MUFG (formerly The Bank of Tokyo-Mitsubishi UFJ) , Mizuho Bank and Sumitomo Mitsui Banking Corporation to raise $500 million," sources in the know of the development told PTI.

An e-mail query sent to the company seeking a response remained unanswered.

Last month the Reliance Jio board had approved raising of around Rs 200 billion in debt. The company has invested over Rs 2 billion in the mobile business which has garnered over 168 million customers.

The Mukesh Ambani firm has also signed agreement to buy mobile business assets of Reliance Communications-- the company led by his younger brother Anil Ambani, for around Rs 250 billion.

The source did not mention the timeline for raising the loan from Japanese banks and said, "The agreement is yet to be signed.

Reliance Communications gets bondholders' nod for asset sale to Jio

India's Reliance Communications Ltd (RCom) said on Wednesday its bondholders had approved their asset-sale plan, that includes the sale of certain assets to upstart rival Reliance Jio Infocomm Ltd.

Holders of the debt-laden telecom operator's $300 million bonds have also approved the monetisation of other real-estate assets, RCom said in a statement.

RCom also got approval for the partial release of noteholder collateral to help the sale get underway, the company said, adding the proceeds would be used for partial redemption of notes.

RCom last week had moved the Supreme Court in a desperate attempt to complete the asset sale and to also avoid going to the National Company Law Tribunal, according to a report in The Economic Times.

Earlier this month, the firm lost its appeal in the Bombay High Court against an arbitration tribunal ruling in the Ericsson case, where the Swedish company sought payment of unpaid dues.

Anil Ambani-controlled RCom got shareholders' nod in February to sell its wireless assets to Reliance Jio, the telecom unit of Mukesh Ambani-led Reliance Industries Ltd.

China Development Bank withdraws insolvency petition against RCom

China Development Bank (CDB), the biggest foreign lender to India's Reliance Communications Ltd (RCom), on Friday withdrew a petition seeking to drag the indebted telecoms carrier into insolvency.

A lawyer for CDB told the National Company Law Tribunal that the Chinese bank had filed to withdraw the petition. The tribunal allowed CDB's plea to go forward.

CDB, which is owed around $2 billion along with two other Chinese banks, had filed the petition in November seeking insolvency proceedings against RCom, saying a large amount of loan principal and interest payments was overdue.

After RCom's debt-reduction plan, including an asset sale to Reliance Jio Infocomm Ltd, was announced last week, CDB told Reuters that it was in talks with RCom.

Details of the terms of a possible settlement between the Chinese bank and RCom were not immediately known. By 0847 GMT, RCom shares were trading 4.2 percent higher in a Mumbai market that was up 0.4 percent.

Last week, RCom signed a deal to sell most of its wireless assets to Jio in a deal people familiar with the matter said was worth nearly 240 billion rupees ($3.8 billion), subject to final adjustments at the time the transaction closes.

20 stocks that have eroded shareholder wealth in CY17

STOCK MARKET - Shares of Anil Ambani-owned Reliance Communications (RCom) came under selling pressure again on Thursday and lost around 4.4% to Rs 9.75 levels, after the company recently defaulted on its interest payment obligation. On a year-to-date (YTD) basis, the stock has plummeted over 70%.

Besides RCom that has eroded shareholder wealth in CY17, shares of Videocon Industries, Religare Enterprises, Sintex, Lupin and Glenmark are some of the names in the BSE A group that have seen negative return thus far in CY17. By comparison, the benchmark indices – S&P BSE Sensex and Nifty50 – have gained around 25%.

Videocon is the top loser in this pack that has slipped nearly 86% to Rs 14 levels (YTD). The company that has an outstanding debt of nearly Rs 43,000 crore is learnt to have got in-principle approval of lenders to restructure debts after its promoters agreed to pump in Rs 3,000 crore as equity.

Religare Enterprises has slipped 82% thus far in CY17 to Rs 46 levels, but has recovered marginally from its 52-week low of Rs 42.70. Recently, the company reported that its standalone net loss has widened to Rs 47.39 crore for the first quarter ended June 30, 2017. It had registered a net loss of Rs 25.84 crore in the same quarter of 2016-17.

Given the backdrop, analysts say investors should not add these stocks to their portfolio as the business model remains weak and it will be difficult for these companies (RCom and Videocon) to claw back to profitability in the foreseeable future.

ADAG Group stocks : RCom down 15%, Reliance Nippon falls below issue price

STOCK MARKET - Shares of Anil Ambani-controlled Reliance Group companies (ADAG) remained under pressure by falling up to 15% on the BSE in intra-day trade.

Reliance Communications (RCom), Reliance Home Finance, Reliance Nippon Life Asset Management, Reliance Capital, Reliance Infrastructure,  Reliance Naval and Engineering and Reliance Power were down in the range of 8% to 15% on the BSE. At 02:22 PM; the S&P BSE Sensex was down 0.63% at 32,734 points.

RCom touched a new low of Rs 9.75, down 15% on the BSE. In the past three trading sessions, the stock tumbled 30% after the company posted a consolidated loss of Rs 3,919 crore in first half (April – September) of the current financial year 2017-18. It had posted a net profit of Rs 152 crore in the same period of FY17.

Thus far in the calendar year 2017 (CY17), the stock plunged 89% from Rs 88.20, against 25% rise in the benchmark index.  RCom market capitalisation has eroded by Rs 5,729 crore to Rs 2,746 crore, so far in CY17.

The BSE said the exchange has sought clarification from Reliance Communications with respect to news article appearing on www.financialexpress.comon November 15, 2017 titled "RCom future turns bleaker as Anil Ambani firm defaults on US dollar bonds."

The reply is awaited.
Reliance Nippon Life Asset Management dipped 9% to Rs 248 in intra-day trade, falling below its issue price of Rs 252 per share. The stock tanked 13% in past two trading sessions. The company had raised Rs 1,540 crore through initial public offer (IPO), got listed on the bourses on November 6, 2017.

Rcom hits new low on media reports that Brookefield called off deal

Reliance Communications (RCom) hit a new low of Rs 15.50, down 8% on the BSE in intra-day trade as the media report suggests that Brookefield called off the deal with the company after Aircel merger falls through.

The stock has fallen below its previous low of Rs 16.60 touched on October 30, 2017 touched on the BSE in intra-day trade.

The BSE said that the exchange has sought clarification from Reliance Communications on November 6, 2017, with reference to news appeared in economictimes.indiatimes.com dated November 4, 2017 quoting "Brookefield calls off Reliance Communications deal after Aircel merger falls through"

The reply is awaited.

Meanwhile, according to PTI report, the loss-making telecom operator Reliance Communications will shut down voice call service from December 1 and its customers can move to other networks by the end of the year, as per direction issued by the Telecom Regulatory Authority of India (Trai) on Friday.

At 12:18 PM; the stock was trading 5% lower at Rs 16 on the BSE, as compared to a marginal 0.02% decline in the S&P BSE Sensex. A combined 24.73 million shares changed hands on the counter on the BSE and NSE.

RCom shares fall 5% as the company plans to shut down 2G operations

Continuing to fall for the second straight session, shares of Reliance Communications today fell by nearly 5 per cent amid buzz that the debt-ridden company is planning to shut down its wireless telephony business.

After a weak opening, shares of the company further lost 4.55 per cent to Rs 15.70 - 52-week low - on BSE.

On NSE, the stock lost 4.86 per cent to hit a one-year low of Rs 15.65.

The stock had fallen by over 3 per cent yesterday. On Tuesday it had declined by 3.95 per cent.

RCom plans to shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services, according to sources.

"As already announced on October 1, 2017, RCom has decided to adopt a 4G-focused strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017," the company said in a statement yesterday.

RCom said its "4G-led strategy will be executed, as at present, on the back of capital-light access to Indias most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio".

RCom nears record low on talk of closure of DTH business

Reliance Communications (RCom) dipped 5% to Rs 16.15 on the BSE in intra-day trade in an otherwise strong market after media reports suggested that the telecom company shutting down its direct-to-home (DTH) business. The stock was trading close to its record low of Rs 15.90 touched on October 12, 2017 in intra-day trade.

According to a Business Standard report, RCom, which is in the midst of a debt restructuring, is shutting down its direct-to-home television business from next month after it failed to find any buyer for the business.

RCom earlier tried to sell the company to rivals including the Sun group but later backed out citing low valuation. The company claims 5 million subscriber base as compared to Dish-Videocon merged entity which has close to 28 million subscribers, added report.

The BSE said the Exchange has sought clarification from Reliance Communications on October 25, 2017 with reference to news appeared in www.business-standard.com dated October 25, 2017 quoting "RCom to shut down DTH business next month". The reply is awaited.

At 11:31 AM; the stock was trading 2.3% lower at Rs 16.60 on BSE, as compared to 0.95% rise in the S&P BSE Sensex. A combined 23.63 million shares changed hands on the counter on the BSE and NSE.

In past three months, the stock tanked 35% from Rs 25.50 against 2% gain in the benchmark index. It touched a 52-week high of Rs 47.75 on October 25 last year and an all-time high of Rs 844 on January 10, 2008 in intra-day trade.

RCom hits record low as deal with Aircel called off

Reliance Communications (RCom) hit a record low of Rs 17.45, down 9% on BSE in early morning trade, after the enterprise stated that it has known as off its merger with Aircel, owned with the aid of Maxis of Malaysia. The inventory passed its preceding low of Rs 17.80 touched on June 14, 2017 on BSE in intra-day alternate.

“felony and regulatory uncertainties, and diverse interventions by means of vested hobbies, have precipitated inordinate delays in receipt of relevant approvals for the proposed transaction,” RCom said in a statement.

exceptional competitive depth inside the Indian telecom area, collectively with sparkling coverage directives adversely impacting financial institution financing for this sector, have also significantly affected industry dynamics, it added.

RCom and amongst others Aircel had signed binding agreements in September 2016 for the merger of RCom's wireless agencies with Aircel.

in the meantime, RCom in separate regulatory filing stated that it is in discussions with the Brookfield organization to promote as much as 100% stake in its tower subsidiary rather than the fifty one% it had earlier agreed upon. The international tower organisation is also engaged in a revaluation of the deal because of the failure of the merger among Aircel and RCom.

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Reliance Communications rallies 19% on back of heavy volumes

STOCK MARKET - Reliance Communications (RCOM) has rallied 19% to Rs 24.65 on BSE in intra-day trade on the back of heavy volumes.

The trading volumes on the counter more than doubled with a combined 41.03 million shares, representing 1.6% of total equity of RCOM, changing hands on BSE and NSE so far.

Thus far in the calendar year 2017, the stock underperformed the market by falling 29% as compared to 17% rise in the S&P BSE Sensex till Friday, August 11, 2017.

According to reports, the National Company Law Tribunal (NCLT) is set to pronounce its decision on August 14 on whether or not to consider the proposal of merger between RCOM’s wireless business and Aircel.

RCOM and Aircel have already received approvals for the merger scheme from the Stock Exchanges, the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI) and the shareholders of both companies.

“As part of this transaction, RCOM’s overall debt will reduce by Rs 14,000 crore, together with transfer of liability for spectrum installments of an additional approximately Rs 6,000 crore,” the company said in press release, while announcing June quarter results.

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All you need to know about Reliance Jio Prime membership that opens today

Latest Business News - The luxury enjoyed by Reliance Jio users is about to end. However, as a smart entrepreneur, Reliance Group chairman Mukesh Ambani has taken attractive measures to keep his loyal 100 million customers content. While Jio users will now be charged for data and other services from April 1, the company is seeking to retain them through special prime memberships at a one-time fee of Rs 99 and Rs 303 a month for unlimited voice, data and content.

Reliance Jio Prime subscriptions open from today and will close on March 31, 2017 for those who have signed up since September 5, 2016, when the services were first offered.

Jio Prime membership

Jio Prime requires one-time membership charge of Rs 99 to be paid before March 31, 2017. It is an extension of the unlimited services offered under the Happy New Year Offer. Users can apply for Jio Prime subscriptions till March 31, 2017. The Jio Prime plans come into effect from April 1, 2017, the day the existing Jio Happy New Year Offer expires

Here is what Jio Prime subscribers will get:

* Customers who sign up for Jio Prime subscription will be able to use unlimited data and voice services for a year at Rs 303 a month under a special offer (effectively just Rs 10/day)

* User can continue enjoying unlimited offering for another 12 months after enrolment.

* All domestic voice calls to any network will always remain free. No roaming charges will be applicable and there won't be black out days either.(Read More)