Reliance Jio effect: Bharti Airtel posts Rs 9.4-bn loss in India operations

Total revenues were also down by 8.6 per cent to Rs 200 billion for the June 2018 quarter, compared to Rs 219 billion last year

Bruised by an intense tariff war in the telecom sector, Bharti Airtel has reported a net loss of Rs 9.4 billion in its India operations during the quarter ended June. The Sunil Bharti Mittal-led firm, set to be dethroned by Vodafone Idea as the country’s largest telecom operator, had reported a net profit of Rs 8.3 billion for India in the same period last year.

However, helped by an exceptional gain of Rs 5.15 billion, the telco has reported a consolidated net profit of Rs 970 million for the June quarter. Without this gain, Airtel would have reported a net loss on a consolidated basis. The exceptional gain relates largely to creation of deferred tax asset in Nigeria. This was partially offset by network refarming programme and costs pertaining to the business combinations completed during the quarter. The consolidated net profit was down 73.5 per cent for the reported period to touch Rs 970 million against Rs 3.67 billion last year.

Total revenues were also down by 8.6 per cent to Rs 200 billion for the June 2018 quarter, compared to Rs 219 billion last year. The net debt of rose to Rs 1.02 trillion at the end of June 30. Incumbent operators have maintained that Reliance Jio’s “predatory pricing” was responsible for their margins crashing.

ALSO READ: Chief technology officers of Reliance Jio and Bharti Airtel resign

The high-decibel tariff war is not likely to end anytime soon as Jio continues to disrupt the market. Mukesh Ambani-owned Jio has touched a customer base of 200 million within two years of starting its commercial operations, making the company the fastest to achieve the milestone.

“Industry pricing continues to remain untenable,” said Gopal Vittal, managing director and chief executive officer, India & South Asia, Airtel. On an optimistic note, he said the company’s mobile data traffic surged 355 per cent in India on a year-on-year basis, led by successful bundles, content partnerships and handset upgrade plans.

“Q1 FY19 has seen our highest quarterly capex spends of Rs 78.87 billion. Our investments have led to some opex headwinds in this quarter, but we remain focused on structural cost containment through our war on waste programme,” Vittal said.

Low tariffs continue to take a toll and the company’s average revenue per user (ARPU) in India, a key metric to gauge the profitability of any telecom operator, decreased to Rs 105 a month. The ARPU for the March quarter was Rs 116. During the last quarter, Airtel completed the acquisition of Telenor because of which its customer base in the country rose to 344 million. The consolidated Ebitda margin fell to 34 per cent in the last quarter compared with 35.6 per cent in the corresponding quarter last year. Consolidated Ebit also dropped by 43.8 per cent year-on-year to Rs 16.80 billion.

BSNL offers: Recharge with Rs 98, get 1.5GB data per day: What to must know

BSNL has decided to take on Reliance Jio, Airtel with 'Data Tsunami' offer. Here's what BSNL customers must know

Taking on Reliance Jio, Bharat Sanchar Nigam Limited (BSNL) has launched 'Data Tsunami' offer, under which users will get 1.5GB data per day for a period of 26 days with a charge of Rs 98. The state operator has also upped the FUP limit for its Rs 4,999 FTTH plan to stay put in the fibre connectivity competition. "BSNL provides efficient services at cheaper rates as per requirement of customers. This is a pure data STV which provides at a very economic rate at Rs 2.51 per GB," said RK Mittal, Director (CM), BSNL Board, in a press statement.

BSNL Offers :All you need to know about BSNL's 'Data Tsunami' offer

BSNL 1.5GB data per day pack

The new offer comes through the new data STV-98 pack that is available with immediate effect across all BSNL circles in India. Users will get 1.5GB data per day for a period of 26 days with a charge of Rs 98. With the fresh benefits that are available through the Rs 98 pack, BSNL is offering data at Rs 2.51 per GB. This is lower than what Jio is offering with its Rs 149 pack that has a validity of 28 days and offers 1.5GB data per day - which eventually costs Rs 3.5 per GB. Airtel also has a similar Rs 149 pack that brings the data benefits close to Rs 5.3 per GB. However, both Jio and Airtel are providing unlimited voice calls and 100 SMS messages per day that you won't get on the Rs. 98 BSNL pack. This Rs 98 pack offers only data, unlike the Rs 118 pack.

BSNL Rs 118 pack for unlimited voice calling and 1GB of data

Few days back, the telcos launched its Rs 118 pack that offered unlimited voice calling and 1GB of data with a validity of 28 days.

It is to be noted BSNL offers 3G speeds in all circles except Kerala while Jio and Airtel offer 4G speed across all the circles.

Here's a list of Jio's prepaid recharge plans that offer 1.5GB daily data:

Jio prepaid recharge plan priced at Rs 198

Jio's Rs 198 prepaid recharge plan offers 42 GB of 4G data for a period of 28 days, with a daily cap of 1.5GB data. Unlimited local, STD, roaming voice call benefits are also available with this prepaid recharge plan. Subscribers get access to host of Jio apps and benefits of free 100 SMSes per day. The validity of this prepaid plan is 28 days.

Jio prepaid recharge plan priced at Rs 398

Jio's Rs 398 prepaid recharge plan offers 105 GB of 4G data for a period of 70 days, with a daily cap of 1.5 GB data. Unlimited local, STD, roaming voice call benefits are also available with this prepaid recharge plan. Subscribers get access to host of Jio apps and benefits of free 100 SMSes per day. The validity of this prepaid plan is 28 days.s.

Taking on Jio: Now Vodafone to offer 4G smartphones for Rs 2,899

Vodafone has forged a partnership with Micromax, wherein customers can own a 4G smartphone for Rs 999

As the incumbent operators look to take on Reliance Jio and retain their customer base for feature phones, they are forging partnerships with handset makers so as to make smartphones affordable and within reach of a large section of society.

After Airtel, which has tied up with Karbonn to come out with a smartphone for an effective price of Rs 1,399, Vodafone has also forged a partnership with Micromax, wherein customers can own a 4G smartphone for Rs 999.

According to the Vodafone offer, existing and new Vodafone customers will have to buy the Micromax Bharat-2 Ultra smartphone by paying Rs 2,899 and if they recharge at least Rs 150 per month for 36 months, Rs 1,900 will be returned as cashback.

Also Read : Micromax launches budget smartphone

At the end of 18 months, users will receive a cashback of Rs 900 and after another 18 months, a cashback of Rs 1,000, in their Vodafone M-Pesa wallets. Vodafone has not provided a specific plan for the Micromax offer and people buying the device can recharge with existing offers of the company.

As the company is targeting feature phone users, who usually recharge with amounts starting at Rs 10, Vodafone has allowed the flexibility for users to choose recharges of any denomination but to avail the offer, a minimum of Rs 150 should be spent in a month, or Rs 2,700 in 18 months.

Avneesh Khosla, associate director — Consumer Business, Vodafone India, said, “Through our partnership with Micromax, we have democratised 4G smartphones at a price of under Rs 999. This will help fulfill the aspirations of several million phone users across the country who desire a smartphone but couldn’t afford one.”

Airtel takes on JioPhone with Rs 1,399 4G smartphone: All you need to know

The partnership between Airtel and Karbonn is part of Airtel's 'Mera Pehla 4G Smartphone' initiative

Bharti Airtel has collaborated with home-grown Karbonn Mobiles to offer a 4G smartphone at an effective price of Rs 1,399. Dubbed ‘Mera Pehla 4G smartphone’ by the telecom major, the initiative is aimed at providing affordable 4G smartphone to people seeking to move from feature phones to smartphones and experience high-speed internet on the go.

Under the partnership, the Karbonn A40 Indian smartphone, which has a retail price of Rs 3,499, will be offered at an effective price of Rs 1,399. The smartphone comes bundled with a monthly pack of Rs 169 from Airtel, which offers generous data and calling benefits.

To avail of the smartphone bundled with Airtel benefits, the customer needs to make a down payment of Rs 2899 for the 4G smartphone and make 36 continuous monthly recharges of Rs 169. The customer will get a cash refund of Rs 500 after 18 months and another Rs 1000 after 36 months, taking the total cash benefit to Rs 1500.

Karbon A40 India smartphone with Airtel bundle offer

In case the customer does not wish to opt for the Rs 169 bundled plan, she/he has the flexibility of doing recharges of any denomination and validity as per individual requirements. However, to claim the cash refund benefit, recharges worth Rs 3000 must be done within the first 18 months (to claim the first refund installment of Rs 500) and another Rs 3000 over the next 18 months (to claim the second refund installment of Rs 1000).

The ownership of the smartphone is completely with the customer and there is no need to return the device to Airtel/Karbonn at any point to claim the cash benefit.

Starting October 11, Karbon A40 India and other smartphones under the ‘Mera Pehla 4G Smartphone’ initiative will be available at leading mobile stores across the country. After sales support for the devices will be provided by the handset manufacturers through their service network. (more)

Rs 2500 JioPhone @ just Rs 1500! How RIL is planning to recover losses

Jio has amassed more than 128 million subscribers since its launch last year

Reliance Industries' telecom upstart Jio is footing at least 40 percent of the cost of its basic 4G phone, two sources familiar with the matter said, as it bets on recovering the investment by luring in millions of new customers.

The Jio Phone, rolling out this week for a refundable deposit of 1,500 rupees ($23.05), will cost at least 2,500 rupees ($39) to assemble, the sources told Reuters.

That means Jio will likely carry more than $150 million in costs for every 10 million JioPhones it sells.

And the company aims to build a subscriber base of between 250 million and 300 million users in the next two years, said one of the sources.

Reliance Industries did not respond to a request for comment.

Some Reliance investors may flinch at the cost of subsidies, but the scale of the outlay is a clear signal of the level of Jio's ambition, as it targets an audience of some 500 million who still cannot afford smartphones in India.

Also Read : Nokia 8 with dual rear camera launched in India at Rs 36,999

Jio's advanced voice over LTE (VoLTE) network only works with 4G enabled devices, inaccessible to many even at subsidised rates. The significantly cheaper JioPhone, however, will open the Internet to a less affluent segment of Indians for the very first time.

"The 3,000-rupee smartphone was not cutting it," the second source said. "Reliance is making a bold attempt with this phone and data will be the key driver for them."

Analysts estimate a majority of Indian feature phone users have an average revenue per user (ARPU) of rupees 50 or lower. JioPhone's 153 rupees monthly plan for so-called pre-paid users aims to drive up this ARPU, the first source said.

Jio, backed by India's richest man Mukesh Ambani, has amassed more than 128 million subscribers since its launch last year, by offering free voice and cut-price data for months.(more)