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Reliance Jio’s hyper-aggression scorches competition

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Reliance Jio’s hyper-aggression scorches competition

[vc_row][vc_column][vc_column_text]Market analysts predict fall in revenues in telecom sector

By Sindhu Bhattacharya

Reliance Jio Infocomm is living up to the hype surrounding its arrival, having ‘primed’ competition to offer unbelievably low priced data packs over the weekend. Remember, though RJio has said its services will become commercial from April 1, after a six-month free run, it has priced these services dirt cheap and is driving membership of ‘Prime’ aggressively before March ends. This combination of low-priced data packs and Jio Prime membership drive is already killing the telecom industry.

On Sunday, Paytm chief Vijay Shekhar Sharma started a thread where he sought additional data from market leader Bharti Airtel on Twitter. He began by seeking more information about the Rs 549 plan that offers 1 GB data limit every day. Sharma said he called up Airtel customer care and got 60 GB per month data use option in place of current 15 GB monthly usage limit on Rs 2,999 plan.

Though many among the Twitterati panned him saying there was no need to continue paying Rs 2,999 despite increased data usage, Sharma’s thread spurred countless mobile phone users to also seek higher data usage from their respective service providers. Meanwhile, RJio snatched this opportunity and said on twitter that it would offer him 56 GB mobile broadband plan for just Rs 499, which Sharma obviously accepted. It is entirely possible that Bharti will now try and retain Sharma’s connection by offering him matching plans offline, but the point really is that RJio is changing tariff dynamics of the industry and everyone will have to suffer a cut in revenues due to this.

Rajiv Sharma and Darpan Thakkar of HSBC Global Research said in a note to clients that despite RJio beginning commercial operations from April, “We see sector revenues declining in FY18 by 6% as Average Revenue Per User (ARPUs) for the mid- to high-end of the subscriber base with incumbent telcos may get reset to significantly lower levels. The revenue decline may be bigger for the sector if termination rates were to decline meaningfully, as this may add to the ongoing tariff wars the sector currently faces.” Remember, the industry has already seen a similar 6% decline in revenues in the third quarter, when RJio services were free.

In fact, Edelwiess analysts Sandip Agarwal and Pranav Kshatriya had another warning for the embattled telecom industry: they expect RJIO to venture into feature phone segment with aggressive voice offering which will drive down voice realisations, leading to revenue headwinds. So not only is cheap data fast becoming a headache for the leading telcos Bharti, Idea Cellular and Vodafone India, even voice realisations may fall in the near future.

According to this piece, RJio is offering two key monthly plans at Rs 499 and Rs 303, with 28 days of validity each. Apart from basic offerings, the 4G data available to a non-Prime user in the Rs 499 plan is 5GB for 28 days without any daily cap. But Prime members will get 2GB of 4G data every day, which means 56GB in 28 days. The Rs 303 Plan offers 2.5GB 4G data to non-Prime users, valid for 28 days, while Prime users will receive 1GB 4G data every day for 28 days. It is obvious that with such generous data offers, competition to RJio also needs to loosen its purse strings.

RJio is in a hurry to gain market share and this is evident from presentation it gave to analysts on Friday. Sample this: RJio is targeting 50% market share, in a market 50% larger and an Ebitda margin of 50% by 2021. This means it is eying $22 billion revenue and $11billion Ebitda within the next four years. Obviously then, it must wean away customers from competition to achieve such ambitious targets. But are the RJio targets realistic?

Analysts of IIFL Institutional Equities said in a note to clients that RJIO’s Prime membership will threaten industry revenue growth over the next six months.  They also quoted the company’s presentation to say “R JIO thinks that in its 1GB/day Prime plan at Rs303 for 28 days, effective yield will be Rs30/GB and it will go up to Rs50/GB in six months and will be higher in regular packs. We think RJIO has overestimated industry revenue and its revenue market share, and it has underestimated the capability of competition to raise their data capacity.”

Whether Rjio achieves its ambitious medium term targets of market share etc remains to be seen. But in the immediate future, competition cannot afford to sit over RJIo’s unmatched aggression. In these telecom wars, the only beneficiary for now seems to be the Indian phone user.[/vc_column_text][/vc_column][/vc_row]

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Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

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XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

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India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

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Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

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India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

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Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

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