Reliance Jio, one of India's leading telecom operators, experienced a significant mobile service outage, affecting thousands of users across the country. The disruption, which peaked at 2:22 p.m., led to a surge in user reports on DownDetector, a popular service monitoring platform.

Outage Details

According to DownDetector, over 7,482 Jio users reported issues with their mobile service. The problems reported by users varied in nature and severity:

• 67% of affected users reported no signal
• 17% experienced a total blackout of services
• 16% faced issues with mobile internet connectivity

Impact on Users

The outage appears to have had a widespread impact on Jio's subscriber base, affecting various aspects of mobile communication:

No Signal

The majority of affected users found themselves unable to connect to Jio's network, potentially impacting their ability to make calls or send text messages.

Total Blackout

A significant portion of users experienced a complete loss of service, suggesting a more severe disruption for some subscribers.

Mobile Internet Issues

A number of users also reported problems with their mobile data services, which could have affected their ability to access online content, use apps, or conduct internet-based activities.

Response and Resolution

As of now, Reliance Jio has not issued an official statement regarding the cause of the outage or the expected time for service restoration. Users are advised to stay tuned to Jio's official communication channels for updates on the situation.

This service disruption highlights the critical role of telecom infrastructure in today's connected world and the impact that outages can have on daily activities and business operations. As Jio works to resolve the issue, the incident serves as a reminder of the importance of robust and reliable telecom services in an increasingly digital society.

Jio subscribers experiencing continued issues are encouraged to contact Jio's customer support for assistance and to report any ongoing service disruptions.

Reliance Jio, India's telecom giant, has reached a significant milestone in its financial journey, according to a recent analysis by Jefferies of the company's FY25 annual report. The report highlights Jio's achievement of free cash flow positivity, marking a crucial turn in its financial performance.

Key Highlights from Jefferies' Analysis

1. Free Cash Flow Positivity: Jio has turned free cash flow positive, a significant achievement for the telecom behemoth.

2. Revenue Growth: External client revenues for Jio Platforms and Reliance Jio Infocomm saw a remarkable five-fold increase year-on-year.

3. 5G Adoption: The company reported 191 million 5G subscribers, accounting for 45% of its wireless data traffic.

4. Standalone Performance: Jio's standalone revenues surged by 57% to Rs 1.19 trillion, with external client revenues reaching Rs 22.00 billion.

5. Cost Management: Network operating costs grew by 8%, while other expenses rose by 17% to Rs 88.00 billion.

6. Capital Expenditure: Capex declined by 15% to Rs 441.00 billion, supporting the positive cash flow turn.

7. Profitability Metrics: Return on invested capital (ROIC) improved by 70 basis points to 6.40%. However, net debt-to-EBITDA stood at 2.90x.

8. Asset Utilization: Jefferies noted that 22% of Jio's $56.00 billion gross assets remain under development.

Financial Performance and Challenges

The analysis reveals a mixed picture of Jio's financial health. While the company has achieved free cash flow positivity, it continues to face profitability pressures. The significant growth in revenues, particularly from external clients, demonstrates Jio's expanding market presence and diversification of income streams.

The company's 5G rollout appears to be gaining traction, with 191 million subscribers already on board, contributing to nearly half of its wireless data traffic. This rapid adoption could be a key driver for future growth and service monetization.

Cost and Capital Management

Jio's cost management shows a moderate increase in network operating costs, while other expenses grew at a faster rate. The reduction in capital expenditure by 15% has played a crucial role in achieving free cash flow positivity. However, the company's net debt-to-EBITDA ratio of 2.90x suggests that debt management remains an area of focus.

Future Outlook and Challenges

Jefferies' analysis points to some challenges ahead for Jio:

1. Asset Utilization: With 22% of Jio's gross assets still under development, there's potential for increased depreciation costs in the future.

2. Margin Sustainability: The brokerage suggests that additional tariff interventions and enhanced service monetization will be necessary to sustain margins.

3. Return on Investment: While ROIC has improved, further enhancements in this metric will be crucial for long-term profitability.

Recent Tariff Changes

In a significant move, Reliance Jio has discontinued its Rs 799 prepaid plan, which offered 1.5 GB per day data for 84 days. Subscribers now must upgrade to the Rs 889 plan with the same data allocation and validity or choose the Rs 239 plan for 22 days. This follows Jio's earlier discontinuation of 1 GB per day plans at Rs 209 and Rs 249, which are now only available at physical stores.

The industry's new base plan stands at Rs 299. Industry analysts expect telecom operators to announce fresh tariff hikes within six months. ICRA analysts predict hikes of less than 15-20%, smaller than previous increases of 19-21% across major operators.

As Jio navigates these challenges and implements tariff changes, its ability to monetize its extensive infrastructure and growing subscriber base will be key to maintaining its growth trajectory and improving profitability metrics. The achievement of free cash flow positivity marks a significant milestone for Reliance Jio, reflecting its maturing business model. However, the company's future success will depend on its ability to balance growth investments with profitability improvement in an increasingly competitive telecom market.