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What is Mr. Mukesh Ambani Alternative Plan for Reliance Jio?

Reliance Jio Chairman Mr. Mukesh Ambani seems really disturbed with ongoing Collaboration with Competitor. He showed his frustration in one of the recent interview & Claimed that Reliance Jio is going through adoption phase within Telecom circle. Anyone will agree with Mr.Ambani that after investing more than $23 Bn in developing infrastructure takes lots of passion and commitment.

During interview, he pointed outthat his budget for Reliance Jio is not $25 Bn but $40 Bn. He also pointed out that he is not happy with incumbent operator with respect to point of interconnect and consider the slow process as tactic to delay the seamless experience to Reliance Jio esteemed customer base. He also mentioned that he is having an alternative plan in case things don't improve with Incumbent operators.

I catches that point and was trying to analyze his statement. In order to get the seamless voice experience, Reliance Jio needs to get the PoI's from all service providers and with the kind of user acquisition Reliance Jio is doing then they will regularly need higher & higher number of PoI. Am i right or not? In that scenario, what he is going to do which will solve his problem and can bypass the whole mechanism. In my point of view, the only way is to acquire mobile service providers. Based on his statement, Jio is still having $16 Bn which they can spend and that will be more than enough to acquire existing mobile service provider.

In my point of view, reliance Communications and Aircel combination might be acquired by Reliance Jio. Post merger the entity will be around $10 Bn in assets & around $4.3 Bn in debt. In case , Reliance Jio acquire them then they will get the seamless experience plus lucrative 850 MHz band plus fiber optic network which they are infact using it plus 170 plus million wireless user. As the combined entity moved completely towards GSM/GPRS and so on network support and hence interoperability will not be an issue.

The move will solve all the problem of Reliance Jio and it will give them an opportunity to also target non data userbase where they are lacking. The move will put leading incumbent operator is real trouble to mitigate Reliance Jio competitive move.

I will be interested to know reader views. Do drop your comment or feedback

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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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