Jio Might Barely Face Any Impact of Corona Lockdown

Reliance Jio

Jio Might Barely Face Any Impact of Corona Lockdown

With the aim to help its users tide through testing times, Reliance Jio has already introduced many offers for its prepaid and broadband customers. The telco has launched free talk time, messages, and a new broadband plan, especially for users facing the brunt of the Coronavirus lockdown.

In fact, the operator has also extended the validity of JioPhone’s plans until April 17, 2020. And now, according to a new report, Reliance Jio’s bottomline will not see much of an impact due to the nationwide lockdown.

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“The lockdown should have limited impact on RJio as telecom companies are expected to see recharge upgrades given the increase in data consumption,” according to a Motilal Oswal report. The report states that there will be no new additions as all stores are closed. The report said that its existing customers are opting for digital recharges, so there will be no major effect on the operator.

“Our FY21/FY22E revenue growth estimates (49 percent/14 percent) could see an upward revision as there is an increase in noise around the next round of price hikes to improve industry health. For FY21/FY22E, we estimate subscribers at 469million/483million and ARPUs of Rs. 158/Rs. 163,” the report added.

Meanwhile, many reports suggest that Facebook is in talks with Reliance Jio to acquire 10 percent stake in the company. However, there have been no official announcements from either of the companies. But, rumours say that the deal will be valued close to $60 billion. In addition, the report claims that the deal could also be postponed due to the Coronavirus situation in the country.

In other news, Reliance Industries, the parent company of Reliance Jio, has already taken over some part of the latter’s debt. At present, Reliance Jio has more than 370 million customers. The operator had added 90 million subscribers in 2019. The operator had launched its services in 2016 with free three months services.