Reliance Jio has completely changed the telecom industry. By giving free data, calling, and messaging services to customers for six months and then providing the same services at the cheapest possible rates, the company has become everyone’s favorite network. It’s safe to assume that it is because of Jio that the current telco market is offering affordable high-speed mobile internet and voice calls. This has also made competitors bearing huge losses.
Recently, during an interview, Airtel owner Sunil Bharti Mittal blamed Reliance Jio for their losses. He accused Jio of the existing problems in the telecom industry. And now, Mukesh Ambani has responded to Mittal’s allegations.
While talking to ET, Ambani said that “there is no need to cry so much” as businessmen should be ready for both profit and loss always.
“If there are some losses that you take, then we’re all big boys-—we shouldn’t be crying. This country has given us a lot more, all of us have started with nothing.”
He further added:
“We all get into business and we take a risk in terms of putting capital. Profit or loss is not guaranteed, that depends on the consumer and depends on the product. That’s a risk that business people take.”
Mittal had claimed that Jio was against the relief package for the sector which is already burdened with debt. Blaming the free services of Jio, Mittal called it the main reason because of which the telecom companies had to write-off investments worth $50 billion. To this Ambani gave a heart-winning answer saying:
“The regulator’s job is not to guarantee us a profit, however much we cry. The regulator’s job is to first make sure that the country goes forward and then make sure that the consumer goes forward. If I have to invest and I cannot take the country forward, then it doesn’t work. Second, consumer. And, after creating the consumer piece, yes, I have to give return to my shareholders, and you will see all my quarterly results coming, and I’m pretty confident that we will give sensible returns to our shareholders. Our share price already reflects that.”
According to Economic Times, Jio reported a net loss of Rs. 270.59 crore in the first results in mid-October while in the quarter that ended in September, it showed a revenue of Rs. 6147 crore with earnings before interest and tax (ebit) in positive. Some business analysts are of the view that Jio will post profit in the quarter ending December 31.
Answering to when will Jio achieve break-even, Ambani said:
“I don’t want to predict, but I think we are ahead of our schedule in terms of the returns that we are generating. Jio results are declared every quarter now. You can see the trend. You watch the next few quarters. You will learn in January and you will learn in March.”
He even stated that after Jio’s entry in the telecom industry, India has become the number one mobile broadband market in the world leaving behind China and U.S.A.
“If data is destiny, new India is well and truly ready for its new tryst with destiny.”
According to the reports, Ambani also added that it was possible for the Indian economy to triple its size to $7 trillion in the next 10 years and become the third largest in the world, then cross the $10 trillion mark by 2030 and close the gap with China and the US.
Don’t you think Ambani’s reply to Sunil Bharti Mittal was full of swag? Do share your vies in the comments section below.