(Last Updated On: January 15, 2017)

Ever since its launch in September 2016, Reliance is continuously working on sorting the network and quality issues on the Reliance Jio network. At one time, Reliance Jio was even the fastest growing startup in the world and had about 67 million customers by December 2016.

Investment

Source- Wikimedia Commons

Reliance Jio network has been facing many issues since it became operational. There were issues related to the call failures, and network (coverage and speed). Jio was launched in the 1st week of September and was free for all subscribers under the “Jio Welcome Offer” till 31 December 2016. The whole point of this was to let users try the network first before they would want to pay for their services.

However, the network had a lot of issues which didn’t let the subscribers enjoy the free services offered by Jio to the fullest. As a result, Reliance announced new offer called Jio “Happy New Offer” which offered similar benefits as the “Welcome Offer” with slight variations. This offer generated a lot of controversies for Jio, as it was allegedly beyond the stipulated free 90 days conditions given by TRAI.

Airtel approached TDSAT against TRAI allowing Jio to continue offering its services for free beyond the stipulated duration of 90 days. The hearings are currently in progress, but this doesn’t distract Jio from improving its services.

Mukesh Ambani, Chairman of Reliance Industries Limited has now decided to invest another Rs. 30,000 crores into Jio. This investment would be aimed at improving the network coverage besides boosting the network capacity.

RIL has already invested close to Rs. 1,70,000 crores into Jio, and this investment would raise the total capital to Rs. 2,00,000 crores.

“In view of the unprecedented customer response to RJIL’s services as well as address the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity,” said Reliance Jio in a rights issue notice for existing shareholders.

It is worth noting that Jio is not opting for any debt instruments for raising the additional funds, but is focusing only on equity.

Jio Wants To Improve Its Network Experience Greatly

As already mentioned, Jio free services will come to an end on March 31st, and the subscribers would be required to pay for the 4G services. However, as not many are not using Jio as their primary connection, due to network issues the ARPU would be very little making the whole operation non-viable.

That’s why Jio wants to bring its service quality up to the subscribers’ expectations so they would start using it as their primary connection and become profitable customers in the process.

Given the call clarity, short call connection time, and good data speeds, I would consider porting my primary number to Reliance Jio if the company is able to sort these issue related to reliability and coverage. After all, Jio tariff plans offer more value for money than any other telcos. What about you?

 

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