There is no doubt that Reliance Jio has become the largest telecom operator in India. Now, a new report claims that the operating profit of Jio is likely to be double in the next two years.
The report states that Jio might achieve Rs. 52,400 crore of revenue, when its subscriber base will reach 500 million. Currently, the operator has 370 million users at the end of last year. Reliance Jio has added 14.8 million customers in Q3 of this financial year.
In fact, analysts believe that it's the average revenue per user will also increase to Rs. 168 in the next two years from the current Rs. 128. Furthermore, they expect that there are chances that Jio subscribers' base might increase as Vodafone-Idea is facing a major financial crisis. And if the latter files bankruptcy then there will be only two operators in the next 12 months (Reliance Jio and Airtel).
Meanwhile, Deutsche Bank suggested that the bailout package will not help Vodafone-Idea to give a tough fight to other operators. "We think the government will find it too expensive to provide a large enough fix needed to prop up Vodafone Idea for anything other than the medium-term," the German investment bank was quoted by Economic Times.
Meanwhile, PTI reported that Reliance Jio paid Rs. 195 crore to the Department of Telecom to clear its AGR debt. This means the operator has become the first one to clear its dues as per the ruling given by the Supreme Court. "Reliance Jio has paid Rs. 195 crore for AGR. This includes advance money that the company has paid for the month of January 2020," the source was quoted by the news agency. On the other hand, both incumbents Airtel and Vodafone-Idea have asked for an extension to pay its AGR dues.