Jio to invest 30,000 crore more on networks

Mukesh Ambani-led Reliance Jio Infocomm Limited (RJIL) is set to invest 30,000 crore more to expand coverage and increase network capacity. With this, the company’s total investment in the network will reach close to 1.9 lakh crore.

“In view of the unprecedented customer response to RJIL’s services as well as address the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity,” Reliance Jio said in a rights issue notice for existing shareholders.

These investments are proposed to be financed largely through an equity offering to strengthen its balance sheet for growth, it added. “... the company wishes to inform that board of directors at its meeting held on January 13, 2017, has decided to make a rights issue of 6 billion - 9 per cent non-cumulative optionally convertible preference shares of 10 each for cash, a premium of 40 per OCPS, aggregating 30,000 crore,” the notice read, taking the total investment in the telecoms venture to more than 2 lakh crore. In September 2016, Jio had announced the commencement of 4G services, as per terms of its Unified License, with ‘Jio Welcome Offer’ which became effective from September 5, 2016. And after December 2016, the company extended its free service up to 31 March 2017 under a new offer, called – Jio Happy New Year Offer. Under the new offer, all the Jio subscribers will be entitled to certain special benefits under the JNO, which shall comprise of Jio’s Data, Voice, Video and the full bouquet of Jio applications and content, absolutely free, up to March 31, 2017. During this offer period, Jio and Jio customers, will be able to continue the journey of co-creating and building the best network experience together.

The company had also introduced the home delivery of Jio SIMs. On the other hand, the telco has already crossed 70-million user mark and it may touch 100 million by end of March 2017.