Meanwhile, Anil Ambani-owned Reliance Communications (RCom) Ltd's, telecom towers and related infrastructure (45,000-strong tower assets) could have a hidden networth of around at Rs 21,500 crore, according to some market reports.
Which means, Reliance Communication's consolidated debt of Rs.39,895 crore as of September, 2015, should actually be around of Rs.18, 395 Cr.
In another significant development, the telecoms unit of Reliance Industries, controlled by India's richest man Mukesh Ambani, is preparing to launch the nation's biggest 4G broadband network within the next couple of weeks.
If you remember, Reliance had launched it 4G LTE services, Reliance Jio, back in December only to its employees, as well as some Android powered smartphones, LYF series. Promises were also made about full rollout of services to customers by April 2016 and it looks like Reliance is on track.
Calling Jio the world's largest startup, Reliance Industries chairman Mukesh Ambani on Wednesday said the roll-out of its 4G services will lift India from a mobile Internet ranking of 150th to the top 10 slot. Speaking at the Ficci-Frames media and entertainment conclave in Mumbai, Ambani said Relaince Jio has four strategies: Expand country's coverage from 15-20 percent now to 70 percent, give broadband speed that is 40-80 times faster, increase data availability and make the services affordable.
Ambani, who is betting big on the latest venture of the refining-to-retail group with an initial investment of over Rs. 150,000 crores, said Jio will not be a mere telecom network but bring to its customers an entire ecosystem to allow a "Digital Life" to the fullest.
This ecosystem will comprise devices, broadband network, powerful applications and offerings such as live music, sports, live and catchup TV, movies and events, he said. "Jio is not just about technical brute force. It is about doing things in a smart, simple and secure way."
Mr.Mukesh Ambani said, "Currently the data consumption for an average Indian is 0.15 GB per annum. Jio’s network is engineered to provide a capacity of over 10 GB per user— that is nearly 100 times more than what he/she is using today.” He mentioned affordability as a key factor to make India digitally active.
This will be a very interesting event to watch, as the brothers work jointly to outbid / outsmart the other major players in the sector: Airtel, Vodafone and Idea Cellular.
Therefore, accumulate Reliance Communications Ltd (Rs.50.30), without fail: T - Rs.76, SL - Rs.47, Period - short term (60 days).