JIO TO EXPAND NETWORK
Mobile start-up seeks rupees for its next onslaught
Mukesh Ambani’s Reliance Jio Infocomm goes to market for 300-billion rupees ($4.4bn) to enhance the company’s network capacity
Mumbai — India’s richest man is not done yet. After ploughing $25bn into starting a fourth-generation mobile network, Mukesh Ambani will spend more to boost coverage amid complaints from its largest rival that his free services hurt competition. Reliance Jio Infocomm, a closely held unit of Ambani’s Reliance Industries, planned to raise 300-billion rupees ($4.4bn) from a rights offer and would use the proceeds to enhance its network capacity, it said in an exchange filing. Jio says it has been luring 600,000 new users a day with giveaways and had about 72.4-million subscribers four months after starting operations. The new funding will help Jio challenge competitors with free-for-life voice calls and free data services to March. After Jio’s entry, Vodafone Group, which runs the second-largest operator in India, said in November it would write down the value of its local unit. A national tribunal is set to hear a case on February 1 after Bharti Airtel, India’s largest carrier, compla...
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