Reliance Industries Ltd is expected to invest Rs 30,000 crore (Rs 300 billion), of the total Rs 70,000 crore (Rs 700 billion) announced, in its telecom arm Reliance Jio Infocomm over the next two years, credit rating firm Moody's said on Monday. The investment in the telecom business is a credit negative for RIL because RJio will not generate any EBITDA (an indicator of cash flows) for at least next 12 months, it said. Moody's added however that RJio will be a formidable competitor in the sector making it a credit negative for top telecom operators already in the field. "Based on RIL's March 2014 annual report, we estimate that it has already invested about Rs 400 billion (Rs 40,000 crore) in Reliance Jio, and we expect RIL to invest the next Rs 300 billion in Reliance Jio over the next two years," Moody's Investors Service said in a statement. RIL recently announced that it will launch commercial 4G telecom service of RJio in 2015 entailing investment of Rs 70,000 crore. RIL has said that RJio will initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India and the target is to expand this to over 600,000 villages. Moody's said RJio will be a "formidable competitor in India's telecom sector" as it will enter the business with financial muscle. RJio's entry into highly competitive telecom sector is also credit negative for incumbent mobile operators and market leaders Bharti Airtel and Vodafone India because "it will undoubtedly result in intensified competition that will lead to declines in average revenue per user and margins". But, it also said that strong spectrum holding of incumbents; existing large subscriber-bases and well- established brand equity; offering 2G and 3G services (apart from 4G services being launched) as well as marketing and distribution architecture mitigate much of the near-term competitive threat from Reliance Jio for them. "Furthermore, given issues of language and literacy, large parts of rural India remain a substantially voice-based market where near-term demand for 4G services may be muted," Moody's said.
Indian companies have raised $1 billion so far this year - almost four times what they raised last year.
GailTel, the telecom arm of state-owned Gas Authority of India announced on Thursday an investment of Rs 750 crore (Rs 7.5 billion) over thr next five years to expand its telecom infrastructure, combining it with its proposed city gas pipeline.
In a bid to spread its telecom footprint across the country at a time when the government has decided to unify basic and cellular licences, Tata Teleservices has applied for licences in 7 more circles, including Madhya Pradesh and Rajasthan.
Bharti Group said on Thursday that it will not dilute its share in its telecom arm Bharti Televentures even if the government raises the foreign direct investment limit in the sector.
The Union government has asked Mahanagar Telecom Nigam Ltd to explore opportunities that would enable the company to expand its presence and improve financial conditions.\n\n\n\n
Having identified India as an emerging market, Israel expects its telecom exports to the country to grow 30 per cent in 2003, from $100 million recorded in the previous year.
Continuing its pressure on wireless in local loop operators whose tariffs do not meet the criteria specified by it, telecom regulator TRAI has sought clarifications from Tata Teleservices though the company maintained that its WLL tariffs.
Idea Cellular Ltd has achieved financial closure of over Rs 2,225 crore for its telecom venture with a project cost of around Rs 5,000 crore from IDBI Ltd and Rabo India Finance Pvt Ltd.
Amid the ongoing controversy over limited mobility service by basic telecom operators, Reliance Industries asserted on Monday that it was keeping its telecom services in conformity with the licence conditions and said it wanted fair returns and was n
Good salary combined with benefits such as extra allowances and perks are also playing a major role in bringing back professionals to the country, according to 25 per cent of the employers in the TimesJobs.com study.
Reliance joins a number of large companies, including the Essar and Adani groups, which are raising loans abroad as interest rates in India remain high.
The deal between Bharti group and Tata Teleservices is yet another example of how swiftly things can change in business.
Reliance beat analyst expectations on almost all parameters
The company's investments in telecom business reached 15-20% of capital employed.
The mobile -- billed as the world's slimmest phone at 6.5 mm thick -- will go on sale in 31 markets, including Britain, Germany and China, starting this month for 449 euros ($630) without a SIM card or service contract.
In its report 'Global Top Picks', Barclays expects the current bull market in global equities to continue, generating a total return of 9 per cent in 2015.
RIL's standalone net profit rose one per cent quarter-on-quarter
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Reliance, Birla Group, Airtel eye small finance banks.
RIL, according to Goldman, offers the best downstream exposure in the Asian oil sector with its high quality asset base, diversified product portfolio, efficient management of inventory valuation swings and ability to fund large organic expansionary capex without taking on debt.
Essar Global Fund, the Ruia company that invested $1.3 billion in telecommunications, towers and business process outsourcing over the years, made $6.5 billion, a five-fold return, when it flipped these businesses, according to discussions the group has had with merchant bankers.
'I felt sorry the handsome woman had to spend her birthday in a war zone, away from her eight-year-old kid and her drifting husband, both in the US.'
Investors will remain cautious ahead of F&O expiry.
Mamata Banerjee said availability of land won't be a problem in Bengal as the state government has a land bank.
The unit of Reliance Communications may raise debt, equity
World's second largest mobile operator Vodafone Plc of UK on Tuesday sought FIPB approval to invest Rs 10,141 crore (Rs 101.41 billion) in raising its stake in the Indian arm to 100 per cent.
Now sole contender as L&T Infotech quits race
The Indian market is highly competitive, and tariffs here are amongst the lowest in the world.
Trai data show the company has no subscribers in Uttar Pradesh East & West and Bihar
RIL has signed an infrastructure sharing agreement with Reliance Communications (RCom, of the Dhirubhai Ambani group) to launch its services.
The RIL stock has halved from an all-time high of Rs 1,626 made (intra-day) on January 15, 2008, to on Wednesday's closing figure of Rs 800.55.
When it comes to key hands-on management positions, India Inc is still largely run by men.
RIL has faced protests from local authorities, activists and residents across India campaigning against masts and roadworks.
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Benchmark share indices ended lower on profit taking after they touched record highs in the previous session.
After ending its wholesale partnership with Walmart, Bharti Retail has decided to merge with the Future group
Mistry's strategy appears to be the opposite of the group's stance in the heady days of 2007
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