Reliance Jio subscriber base reaches 108.9 million, net losses Rs. 22.5 Crore

Reliance Jio net loss widened to Rs. 22.50 crore for the six months ended March 31, 2017.

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Highlights

    • Reliance Jio subscriber base reaches 108.9 million
    • Net loss widened to Rs. Rs. 22.50 crore
    • The company launched its services in September 2016

Reliance Jio launched its services in September last year. In a bid to cumulate subscribers the company offered free voice calls and data services till March 31 under its two successive promotional offers. Garnering a total of 108.9 million subscribers at the end of March, the mobile network operator recently charged a voluntary amount of Rs. 99 for enrolment of the members under Jio Prime membership. Significantly, over 72 million out of the total number of users said to have enrolled for the paid services this month.

Even after creating a major disruption in the telecom industry, Mukesh Ambani-led Reliance Jio is facing a substantial net loss. Reliance Jio Infocomm on Monday reported its net loss widened to Rs. 22.50 crore for the six months ended March 31, 2017.

The net loss stood at Rs. 7.46 crore during same period last year, the mobile network operator said in an exchange filing. It further stated that the company had no revenue from operations during October 2016 to March 2017 while other income fell by 76 percent to Rs. 0.54 crore from Rs. 2.25 crore in the same six months period of 2015-16. The total expense of the company during the six months period increased to Rs. 34.88 crore from Rs. 13.63 crore a year ago.

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“In digital services, the Jio movement is set to transform India. Jio is witnessing the largest migration from free to paid services in history,” Ambani, chairman of Jio’s parent Reliance Industries, said in a statement on Monday (via Economic Times). “Jio is committed to provide its customers the highest quality and the world’s most affordable data and voice services.”

Reliance Jio’s free services contrived battle against the major Telecom operators Bharti Airtel, Vodafone India and Idea Cellular, however, the company’s recent pricing strategy could most likely stabilise and resolve the issues.

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Jio claimed that with over 110 crore GB of data traffic per month and 220 crore voice and video minutes a day it has become the largest network globally in terms of data carrier. The mobile network operator accounts for 85 percent of data traffic in the Indian industry (via Economic Times). “This market is going to transform. We are moving from voice-dominated market to data-dominated market. Today, 70% of industry’s revenue still comes from voice. We do not expect to see that for too much longer,” Anshuman Thakur, the head of strategy and planning at Reliance Jio said.