Business

Stop Crying, Mukesh Ambani's Suggestion To Sunil Mittal On Blaming Jio For Industry Losses

AASTHA SINGAL | 0
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| December 2 , 2017 , 13:33 IST

Ever since the emergence of Reliance Jio with its eye-popping plans and schemes, many big sharks of telecommunication industry had to face losses, which provoked them to point fingers at the Mukesh Ambani-led Infocomm company.

Bharti Airtel chairman Sunil Mittal also blamed Reliance Jio for the losses faced by the entire telecom industry. The accusation didn't sit well with Mukesh Ambani who suggested the businessman to stop crying.

While talking to a leading daily, Ambani said, "If there are some losses that you take, then we're all big boys - we shouldn't be crying." He further added, "This country has given us a lot more, all of us have started with nothing."

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Reliance Jio was launched in September 2016 with free voice and data services which enticed the users to switch to the network. In order to retain their users, Bharti Airtel, Vodafone India and Idea Cellular also reduced their tariffs which contributed to losses.

Talking about the ethics and risks related to business, he said, "We all get into business and we take a risk in terms of putting capital" whereas "Profit or loss is not guaranteed, that depends on the consumer and depends on the product. That's a risk that business people take."

Reportedly, Jio suffered a net loss of just Rs 270.59 crore for the quarter ended September on revenue of Rs 6,147 crore. However, the positive earnings before interest and tax proved their strong user additions and cost efficiencies.

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Analysts expect Jio to post a profit at the net level as early as the fiscal third quarter ending December 31. "I don't want to predict, but I think we are ahead of our schedule in terms of the returns that we are generating. Jio results are declared every quarter now," Ambani declared.

In the recent HT Leadership summit, Mukesh Ambani was heard calling Sunil Mittal 'friend' instead of a rival but the ongoing competition and cryptic attacks can't be neglected. The figures are somehow suggesting that Jio is doing better than others despite its ultra-low rates.

"If data is destiny, new India is well and truly ready for its new tryst with destiny," Ambani concluded while affirming that his investments are all to benefit the Indian economy which he anticipates could be triple its size to $7 trillion in the next 10 years and become the third largest in the world.