[MTC Global] Re: Reliance Jio: boosting digital revolution

Dear All,

How many users does Reliance Jio need to break-even?

• Reliance Jio will need to garner 75-80 million subscribers, who spend an average of Rs 180 a month on mobile bills, over the next 2-3 years to hit break- even, as per Goldman Sachs.
  
• Reliance Industries Ltd's telecom arm has announced free lifetime voice calls and roaming services for its users along with data charges at about one-tenth of the prevailing rates. The company is targeting 100 million subscribers in shortest possible time, RIL Chairman Mukesh Ambani said while unveiling the 4G service.
• While market watchers described the move as a "knockout punch", they also feel that incumbents (like Bharti Airtel, Vodafone and Idea Cellular) are likely to formulate a new pricing and marketing strategy over the next few days to protect market share.
• Growth for RJio would primarily be driven by market share shift from fringe players and modest gain from incumbents, who have a relatively weak data footprint.
• Another brokerage, Motilal Oswal said a subscriber base of 75 million with an ARPU of Rs 244 would help RJio generate revenues of about Rs 18,400 crore, but remain loss-making at EBITDA level (Rs 1,580 crore).
  

The users would perceive more value in RJio due to the unlimited offerings and free usage till December 2016, leading to strong demand for its services, it appears.

Cheers,

G.S.Autee

On Sun, Sep 4, 2016 at 12:11 PM, Govind Autee <g.s.autee@gmail.com> wrote:

Dear All,
Reliance has been actively investing in startups through its venture capital arm Reliance GenNext Ventures.

• The company planned to back five or six of the second batch of 11 companies that graduated out of its four month-accelerator programme and that it was actively looking for early-stage ventures outside its own mentorship programme.
• It has invested in four companies so far, including enterprise software firm Covacsis and surveillance solutions company Videonetics.
• It has agreed to invest $16 million (Rs 108 crore) in NetraDyne Inc, a US tech startup that is creating a platform based on the Internet of Things to process visual inputs.
• NetraDyne, which is yet to start commercial operations, is developing deep learning solutions and vision-based analytics targeted at industries such as fleet management, automotive, security and surveillance, Reliance said in a stock-exchange filing.
• Reliance said it invested half the amount in NetraDyne on 31 May 2016 and will put in the remaining by 31 March 2017. The investment will give RIL a 40% stake in NetraDyne on the basis of current fully diluted share capital.
• The San Diego, California-headquartered NetraDyne was founded in September 2015 by Avneesh Agrawal and David Julian. Agrawal, a Stanford University graduate, was senior vice president of technology and business at Qualcomm for over 10 years. He was also president of Qualcomm India & South Asia, responsible for the company's business, sales and marketing operations in the region.
• Julian co-founded Mountain View Analytics, a financial investment startup, and later worked as principal engineer in Qualcomm Research for 12 years before launching NetraDyne. Julian has also worked at US space agency NASA's Jet Propulsion Laboratory in the past.

Vivek Rai Gupta, managing partner at Reliance GenNext Ventures, said the company planned to back five or six of the second batch of 11 companies that graduated out of its four month-accelerator programme and that it was actively looking for early-stage ventures outside its own mentorship programme.

Cheers,

G.S.Autee

On Fri, Sep 2, 2016 at 12:57 PM, Govind Autee <g.s.autee@gmail.com> wrote:

Dear All,
Mukesh Ambani led-Reliance Industries Ltd (RIL) on Thursday announced the launch of telecom service Reliance Jio starting 5 September.

• In what may augur well for the government's Start Up India campaign, RIL on Thursday said that the company has set aside Rs.5,000 crore of venture capital to help young entrepreneurs build their businesses.

Cheers,

G.S.Autee

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