Don’t blame Jio for sector’s losses: Mukesh Ambani

Billionaire Mukesh Ambani on Friday hit back at Bharti's Sunil Mittal for blaming his telecom venture Jio for the industry's losses, saying businesses must stop looking at regulators and governments to guarantee their profits. Calling Mittal a friend, he said profits and losses were risks businesses took and it was important to find out if the country and consumers gained after Jio was launched.

Reliance Jio Infocomm chief Mukesh Ambani on Friday hit back at Bharti Airtel’s Sunil Mittal for blaming his telecom venture Jio for the industry’s losses, saying businesses must stop looking at regulators and governments to guarantee their profits.

Calling Mittal a “friend”, he said profits and losses are risks businesses take and it was more important to find out if the country and the consumers gained after Jio.

Addressing the HT Leadership Summit here, he said that after Jio’s entry in the telecom space, India became the world’s No.1 mobile broadband market, consuming more data than users in the US and China.

“For all of us in the industry, I think profits and losses are risks that we take. I don’t think we can rely on governments and regulators to guarantee our profits or losses,” Ambani said.

This was in response to a query on Mittal’s reported comments that all telcos had, put together, written down $40-50 billion of investments due to Jio’s entry. “To me, what is most important is did we move the country forward and does the consumer gain,” Ambani said.

“The question... you should be thinking about is even if there are profits and losses, who gains and who loses. And as long as the consumer gains, and the country moves forward, it is worth taking those losses... Some of us are big boys, we can afford that,” he added.

According to Ambani, Jio is ahead of schedule on turning profitable. “Jio results are declared every quarter now. You can see the trend. You watch the next few quarters. You will learn in January and you will learn in March,” he replied to a question on when the telecom venture will break even. Not elaborating, he said, “I don’t want to predict, but I think we are ahead of our schedule in terms of the returns that we are generating.”

Asked if competition motivates him, Ambani said, “Our DNA is that we are very focused. We always believe in the principle of saying that if you focus on the goal, you will overcome all

THE QUESTION... YOU SHOULD BE THINKING ABOUT IS EVEN IF THERE ARE PROFITS AND LOSSES, WHO GAINS AND WHO LOSES. AND AS LONG AS THE CONSUMER GAINS AND THE COUNTRY MOVES FORWARD, IT IS WORTH TAKING THOSE LOSSES... SOME OF US ARE BIG BOYS, WE CAN AFFORD THAT” MUKESH AMBANI Founder, Reliance Jio Infocomm, on the sidelines of the HT Leadership Summit in New Delhi on Friday

obstacles. If you focus on the obstacles, you will never achieve your goal.”

“At Reliance, we want to be the best in the world,” he asserted. “I am sorry if it appears competitive.” The RIL chairman predicted that India will be ahead of the US in terms of data infrastructure by 2019. He also said money never meant much to him and he has never carried money since childhood, adding: “I have somebody around who pays for me.”

“Today, Indians consume more mobile broadband data than users in the US and China,” he said. “If data is destiny, new India is well and truly ready for its new tryst with destiny.”

India, Ambani suggested, can use digital technology to leapfrog in all sectors of the economy — be it financial services, commerce, manufacturing, agriculture, education and health care. “As Internet becomes accessible to all Indians, I believe we will be among the first to graduate to the Internet of Everything,” he quipped. ‘GDP will double to $5 trillion’ Ambani also said that India’s gross domestic product (GDP) will double to $5 trillion in the next seven years, and hit $10 trillion by 2030, as it will elbow out China by the middle of the 21st century.

He recalled that he in 2004 had predicted that India — then a $500-billion economy — will reach $5 trillion in 20 years. “Today, that prediction seems certain. Indeed, it will be achieved well before 2024,” he said.

“By the middle of the 21st century, India’s rise will be higher than that of China’s, and more attractive to the world,” Ambani asserted. “India will provide a superior and different development model, which creates equitable and inclusive growth based on technology, democracy, good governance, and a society-wide culture of empathy.”

Ambani said the first industrial revolution used coal and steam power to mechanise physical activity, the second used electricity and oil for mass production and distribution, and the third used electronics and information technology to increase productivity and automation.

According to him, while India remained on the fringe in the first two industrial revolutions, it started catching up in the computer-driven third revolution. “The fourth industrial revolution is now upon us. The foundation of this revolution is connectivity, computing, data, and artificial intelligence,” he said, “It’s my firm conviction that India can not only participate in the fourth industrial revolution, but also has the opportunity to be a leader.”