Telecom giant of India, Reliance Jio topped 405M subscribers in the third quarter and the first operator outside China to surpass 400M subscribers in the single-market country. According to the filing, Mukesh Ambani posted a net increase in profits of 12.85 percent on a quarter-by-quarter basis with a sum of Rs. 2844 crore quarter ending September 30. The recent news of ADIA and PIF investing in Reliance’s fiber optic business further adds value to its net worth.
The company has evaluated the implications of the COVID-19 pandemic, and has determined that there is no significant impact on its financial position and performance. – said the company in its filing
Jio’s operating revenue has increased by 33 percent to Rs. 17,481 crores from Rs.13,130 crore. It has also reported that its EBITDA run rate has crossed $1B and net profit up to $409 million. Facebook and Google, who are among their 13 investors, also mentioned that average revenue per user has increased from $1.88 to $1.94 in the second quarter.
This is intended to fast track the rollout of indigenous 5G network infrastructure, and services in India. Qualcomm Technologies and Jio achieved over a 1 Gbps milestone on the Reliance Jio 5GNR solution with a Tier-I carrier in the US. – said Reliance, in its statement
Abu Dhabi Authority and Saudi Arabia’s PIF are also an investor in Jio Platforms, which has raised about $20 billion this year. Earlier this month, the oil-to-retail giants, Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s Public Investment Fund (PIF), announced tier investment plans of $1.01 billion in the company’s critical asset.
The investment in Reliance’s fiber optic business will take place in the form of stakes sales and borrowing for digital businesses to raise about $5.4 billion. Digital Fiber Infrastructure Trust, as the Indian firm, makes a further push in deploying its broadband line across the country.
The company also has expansion plans outside of India, but no timetable has been established yet as stated in an earnings call by Kiran Thomas, President of Reliance Industries.
Reliance operates in 1.1 million kilometers of fibre optics across 1,600 Indian cities and towns. Jio has played a major role in connecting India digitally to all sections of India. With its combination of price and services, it has managed to become a household name today. Jio also operates a range of other services such as JioTV, JioMusic, and JioPay. The investment in Reliance’s fiber optic business will give a boost to its business.