Will Jio hike tariffs? Here's what Akash Ambani said
What's the story
Akash Ambani, the Managing Director of Reliance Jio, has hinted that the telecom giant could increase mobile tariffs in the future. However, he also stressed that the company would rather focus on revenue growth through digital services and broadband offerings. The statement comes as Mukesh Ambani's telecom and tech venture gears up to launch India's largest-ever IPO next week.
Business approach
We have many ways to increase revenue: Akash
Akash said Jio has many ways to increase revenue, not just by increasing mobile data tariffs.
"We always have the ability to take prices up, but what we want to do is really deliver more services to our customers so that they're very happy," he said.
This indicates that Jio will continue its strategy of affordable connectivity while looking for additional revenue streams from broadband, enterprise solutions and digital services.
Expansion plans
Akash on telecom revenue drivers
Akash acknowledged that tariff hikes are a key revenue driver for Indian telcos.
However, he also said Jio sees plenty of opportunities to grow revenue from its existing businesses without relying on tariff hikes.
"The capability Jio built are the decadal growth opportunities," he said, highlighting mobility, home broadband and enterprise services as potential areas for expansion.
Growth focus
Home broadband is another key area of growth for Jio
Home broadband is another key area of growth for Jio.
Akash said the company's proprietary technology operating on unlicensed spectrum has expanded the addressable market for home connectivity from 40 million households to 100 million.
The tech lets Jio connect homes wirelessly without needing traditional last-mile fiber infrastructure in every location.
Market entry
Jio Platforms IPO price band set at ₹1,065-₹1,119 per share
Jio Platforms has set a price band of ₹1,065-1,119 per share for its IPO.
The issue will open for subscription on October 21 and close on October 23. Anchor investor bidding is scheduled for October 19 while shares are expected to list on October 28.
Akash said the strategy could help Jio become a managed technology services partner in both developed and developing markets.