Based on Trai data for the March quarter, Reliance Jio may have paid as much as Rs1,500 crore just for interconnection charges—a figure that’s comparable to Reliance Communications’s revenue for the quarter at Rs1,653.7 crore. While Reliance Jio Infocomm Ltd’s services were entirely free for its customers until March 2017, they came at a great cost to the company. Leave alone recovering the massive investment in the telecom project, operating expenses themselves are enormous and could be way above revenues that Reliance Jio will make based on current tariff plans. So while Reliance Jio may have started charging for its services, its tariffs still appear to be way below levels where they make economic sense. It’s interesting to note here that while Reliance Jio has capped data usage in its flagship plan to 1GB per day, there are no restrictions on voice calls.

Source: Mint June 13, 2017 02:26 UTC