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Customer satisfaction critical for Reliance now: Equirus

Speaking to CNBC-TV18, Pankaj Sharma, ED of Equirus Securities said that Reliance will focus more on product quality and better customer satisfaction as existing 4G service providers are receiving a good feedback from their users.

Reliance Jio launched its 4G services at a grand event in Navi Mumbai on December 28.

The service is limited only to employees at present and the commercial launch is expected around March or April, 2017.

Speaking to CNBC-TV18, Pankaj Sharma, ED of Equirus Securities said that Reliance will focus more on product quality and better customer satisfaction as existing 4G service providers are receiving a good feedback from their users.

He further said Reliance will prove to be a serious competition for other service providers like Bharti , Vodafone and Idea , who already have launched 4G in selected circles.

Below is the verbatim transcript of Pankaj Sharma’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18.

Sonia: The soft launch has been done and everyone knows about this, there will be increased competition for the likes of Bharti Airtel, Vodafone, Idea Cellular etc, but how do you approach all these stocks now?

A: At last this has happened. It was in the pipeline for quite some time and one good thing which we have seen in this case is that at least the feedback which we are getting from people who are currently using the service that it is quite good.

However, one thing is there that it would be quite different from the previous experience of Reliance in telecom space from 2003-2004 that they would be focusing a lot on the product quality, the service standards and customer satisfaction, so they would be a serious player and also if you look at the worst case scenario people has build in, they think the capex whatever Reliance is going to incur on the service is already factored in for Reliance Industries (RIL) and if they start doing well in the market place then that would be a big challenge for Vodafone and Bharti and this is something which is a serious competition, of course we have to wait till March, what happens on the ground but my sense is that Reliance would be a serious player in next 6-12 months and that could be a serious competition for others.

Latha: At the moment you are not putting a sell on Idea or Bharti, are you?

A: Not really because there is a big difference in terms catering to internal guys, people were going there and snatching customers from already established players and there is no reason for people to shift unless they are extremely unhappy with the services of Vodafone or Bharti. So it would require some time for Reliance to get a foothold in the market and the service has to be good and at the same time cheaper – that\’s when people will shift.

Sonia: What is your target price on Bharti and what is your target price on Idea?

A: We officially do not track these companies but we have a buy on Reliance. We are positive on Reliance. Reliance is one stock which will continue to do well on the bases of their core business as well as we are not very negative on Jio capex as such.

Disclaimer: Reliance Industries owns Network 18, which publishes Moneycontrol.com

Bharti Airtel stock price

On December 28, 2015, at 11:06 hrs Bharti Airtel was quoting at Rs 333.00, down Rs 5.4, or 1.6 percent. The 52-week high of the share was Rs 452.45 and the 52-week low was Rs 304.65.


The company’s trailing 12-month (TTM) EPS was at Rs 25.82 per share as per the quarter ended September 2015. The stock’s price-to-earnings (P/E) ratio was 12.9. The latest book value of the company is Rs 195.80 per share. At current value, the price-to-book value of the company is 1.70.

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