After launching zero-tarrif 4G mobile internet services and free voice calling with his signature Reliance Jio telecom venture, Mukesh Ambani is pumping additional Rs 30,000 crore of investment in Reliance Jio which could likely worry other telecom operators, a Times of India report says.
“In view of the unprecedented customer response to Jio’s services as well as to 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. These investments are proposed to be financed largely through an equity offering, to strengthen balance sheet for growth,” the company said in a statement.
The Rs 30,000-crore investment will come in addition to the Rs 1.7 lakh crore investments already made by Reliance in the the telecom business. The new investment has been targeted to enhance the capacity and coverage of Reliance Jio, which already has 72.4 million subscribers till date.
The free data and voice-calling schemes will be valid till the end of March, 2017.
Reliance Jio’s groundbreaking entry in the telecom industry has led massive cuts in tarrif plans of other market players like Airtel, Vodafone and Idea Cellular.
The company is also facing a legal suit filed by its competitor Airtel for “continued violations” carried out by the new company.
Feature image source: Reuters/File