9 Reasons analysts think Reliance Jio may increase prices this year and more

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Reasons analysts think Reliance Jio may increase prices this year and more

Reliance Jio

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Reliance Jio's need to spend Rs 9,000 crore on its long-term capacity leasing deals

Reliance Jio may be required to spend about Rs 9,000 crore a year on its long-term capacity leasing deals with special purpose vehicles (SPVs). These SPVs have been created to hold its demerged fiber and towers assets.

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The chances of Reliance Jio raising prices is higher today than it was 6-9 months ago, according to JP Morgan

In a note to clients, JP Morgan said that the likelihood of Reliance Jio increasing prices is higher today than it was six to nine months ago. The note further termed this to have positive implications for incumbent peers, particularly, Vodafone-Idea (VIL).

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Airtel and Vodafone-Idea plan to raise Rs 25,000 crore (approximately) each to battle Reliance Jio

According to a report in Economic Times, the incumbent telcos Vodafone-Idea and Airtel plan to raise about Rs 25,000 crore each through rights issues. With this, the duo plans to boost their countrywide 4G push to effectively battle Reliance Jio.

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Vodafone-Idea and Airtel's capital raising plans may make Reliance Jio change its tariff stance

The US brokerage said that investors increasingly believe Vodafone-Idea and Airtel’s capital raising plans, signalling their capacity to fight, may prompt Jio to rethink its pricing stance.

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Reliance Jio needs to decide how long it can afford to expand its balance sheet

Vodafone-Idea and Airtel's capital raising plans may make Reliance Jio decide on whether it can afford to keep expanding its balance sheet investments for the next two three years.

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Data tariffs have been largely stable since past 16 months

The data and call charges on major plans, although low, have been largely stable since almost the past 16 months. This, the analysts believe, indicate signs of stability, especially in a market reduced to three private players.

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Reliance Jio reported 65% jump in net profit in the just-concluded fourth quarter

Reliance Jio, which has 306.7 million users, reported a 65% jump in net profit during the recent fourth quarter of the fiscal year 2018-19. This is the company's sixth straight profitable quarter.

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JM Financial forecasts Reliance Jio to emerge as the largest telco by March 2019

According to financial services company JM Financial, Reliance Jio is set to emerge as the biggest telco in the quarter to March 2019. This, as per the company, is likely to exceed market leader Vodafone-Idea's estimated Rs 10,900 crore in the same period.