Extension of Reliance Jio sops may shave off rivals’ earnings

[Anup Tiwari]

KOLKATA: Reliance Jio Infocomm’s decision to extend the subscriptions deadline for its paid plans to April 15 and waive monthly recharges for three months for those registering within that timeline will dent earnings of India’s top three telcos – Bharti Airtel, Vodafone India and Idea Cellular – in the coming quarters and threaten customer retention, analysts and industry experts said

Incumbent carriers could see sharp erosion in Ebitda (earnings before earnings before interest, taxes, depreciation & amortisation) levels over next four quarters with Jio’s latest moves, they said. Ebitda is a key financial performance metric and an indicator of a company’s ability to service debt.
Reliance Jio: Extension of Reliance Jio sops may shave off rivals’ earnings, Telecom News, ET Telecom