Jio’s capex outlay of $25 billion for the roll out of 5G and scale up its home broadband were the two key takeaways from RIL AGM, foreign brokerage Jefferies said in a report.<\/p>\n\n\n\n
Monetization of this capex will require higher revenues in JioFiber, market share gains in mobile, revenues from enterprise clients and tariff hikes. We raise our revenue\/Ebitda estimates by up to 3-5 per cent but lower PAT estimates by 2-4 per cent. Despite higher capex, leverage remains comfortable at 2.2-3.7x Ebitda given strong 27 per cent Ebitda Cagr over FY22-25, the report said.<\/p>\n\n\n\n
At its AGM, management highlighted that its JioFiber is scaling up well with 2 out of 3 new customers choosing JioFiber. The company has embarked on an ambitious plan to connect 100m households through fiber and\/or through its fixed wireless access (FWA) service, Jio AirFiber. Reliance’s 1.1m route km of fiber which is 3-4x that of Bharti and Vodafone Idea and investments in 700MHz\/26GHz spectrum should help drive this business. With fiber penetration still low at 7 per cent of households, there is enough scope to drive this up in our view, Jefferies said in the report.<\/p>\n\n\n\n
Management emphasized that Jio is going ahead with Standalone 5G rollout unlike most global peers as it will allow Reliance Jio to offer benefits of ultra-low latency, edge computing and network slicing. RIL plans to roll out 5G network in key cities in the next two months and have pan-India coverage by December 23. The company plans to invest $25 billion in its network which includes the $11 billion spectrum commitments made in the recently concluded spectrum auctions, the report said.<\/p>\n\n\n\n
Jio’s approach to 5G has striking similarities to its approach to 4G with the company investing aggressively-potentially ahead of time to create a state-of the-art network. For a 10 per cent ROCE on $25 billion investment, Jio will have to earn $2.5 billion\/$7-8 billion incremental Ebit\/revenue.<\/p>\n\n\n\n
Every 10m additional home-broadband subscribers could add $0.9 billion revenues. In mobile, we expect the market to grow to $33 billion by FY24 and an incremental market share gain of 5 per cent would add $1.7 billion revenues. This still leaves $4-5 billion revenue to either come from enterprise applications and\/or further tariff hikes.<\/p>\n","protected":false},"excerpt":{"rendered":"
Jio’s capex outlay of $25 billion for the roll out of 5G and scale up its home broadband were the two key takeaways from RIL AGM, foreign brokerage Jefferies said in a report. Monetization of this capex will require higher revenues in JioFiber, market share gains in mobile, revenues from enterprise clients and tariff hikes. […]<\/p>\n","protected":false},"author":1,"featured_media":292500,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[667],"tags":[],"class_list":["post-292485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/292485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/comments?post=292485"}],"version-history":[{"count":0,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/posts\/292485\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media\/292500"}],"wp:attachment":[{"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/media?parent=292485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/categories?post=292485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nagalandpost.net\/index.php\/wp-json\/wp\/v2\/tags?post=292485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}