Reliance Targets 500 Mn Jio Users Under Five-Year Plan For IPO

Reliance Jio Fiber

Jio GigaFiber service to launch on 5 Sept 2019

Reliance is exploring a "brand-new" model for data privacy where "Indians' data is owned and controlled through technology by Indian people and not by corporates", by installing blockchain technology across the country, said Mukesh Ambani at Reliance's 42nd annual general meeting. More features for JioFiber users include free voice calls to anyone in the country.

Another highlight for Jio Fiber is that the service will come bundled with subscriptions to most leading premium OTT (over-the-top) applications, which we predict will include Hotstar Premium and possibly Netflix. Jio GigaFiber will start with 100 MBPS monthly plans.

Jio GigaFiber will be launching commercially on September 5th with four tariff plans on offer ranging between INR 700 to INR 10,000.

Aiming to get an instant wide adoption, Jio is offering free HD or 4K TV and 4K set-top-box with annual Jio Fiber data plans. Premium Jio Fiber customers will also be able to launch movies on the same day they are released in theatres, Ambani said - a unique service referred to as Jio First Day First Show. He also added that the company has already invested in 14 startups that complement Jio's services.

"This signifies the flawless synergy between the world's largest oil producer and world's biggest integrated refinery and petrochemicals complex", Ambani said. "(We have) plan to reach 20 million residences and 15 million business establishments in 1,600 towns", the business tycoon announced. There was speculation about Aramco buying a 20 per cent stake in the business for about $15 billion, but Khalid Al-Dabbagh, Aramco's chief financial officer, declined to confirm those figures and said the talks with Reliance were at "an early stage". Jio said that the rates will be lower than what the competition offers at the moment and the service will also be superior.

Jio Postpaid Plus will offer priority SIM-setup service at home. It would also provide data and voice connectivity across all devices, both at home and outside, along with family plans and global roaming at a fraction of a cost.

Jio Set-Top Box that will be available to Jio Fiber customers for accessing television services is touted to deliver "console-like" gaming experiences.

The broadband service, known as the GigaFiber will offer network speeds of 100Mbps up to 1Gbps.

Revenue from each of these engines will flow in from this fiscal itself. "The commitments from these two transactions are about ₹1.1 lakh crore", Ambani said. "The potential for growth is enormous, and 500 Mn mark is soon to be achieved", he added. But up until now, the company didn't specify any details around how it is set to make Jio Fiber available against the likes of ACT Fibernet, Airtel, and Spectra among others. The venture aims to connect the country's kirana stores with Reliance's high-speed digital platform, tapping into the millions of consumers who are likely to order supplies and provisions through the platform.

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