Reliance Jio’s Tariff Hike Necessary To Sustain Earnings Growth: ICICI Securities
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ICICI Securities Report
We are sharing our expectations for Reliance Jio in this report.
After phenomenal performance over FY18-FY20, we have seen consolidation in its performance in nine months FY21.
Company has reached a powerful and dominant position in 4G subs and slowdown in growth is due to high base.
RJio is also creating a market for 4G among low-average revenue per user 2G users through Jiophone, which is a gradual process.
RJio would need tariff hike to sustain its earnings growth and offset rise in network operating costs due to payment to infrastructure investment trusts, and rise in costs on account of recent spectrum investment.
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