Reliance Industries Ltd on Friday stated that its telecommunications brand Jio will be turning a profit “shortly.” The company also added that it would continue to invest a further $1 billion into Jio for the next few quarters.
Jio entered the Indian telecom market with low-cost data plans for consumers and in the three months up to September 30, Jio has earned 61.47 billion rupees but had suffered 2.71 billion rupees in loss. However, Reliance’s finance chief V Srikanth has said that the company’s net income will “turn positive very soon.”
Jio’s entry into the telecom sector sparked a price war in the sector as competitors seek to match the competition and retain subscribers. By the end of September, Jio’s user base had risen to 139 million users and erans the carrier an average revenue per user (ARPU) of Rs 156.4, surpassing Airtel’s ARPU of Rs 154.