Reliance Jio’s Tariff Hike Necessary To Sustain Earnings Growth: ICICI Securities
A sim card packet for Reliance Jio, the mobile network of Reliance Industries Ltd., is displayed at a store in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Reliance Jio’s Tariff Hike Necessary To Sustain Earnings Growth: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

ICICI Securities Telecom Reliance Jio update.pdf

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