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You are right in your analysis. Jio is using a different accounting approach to show that they are profitable. One - Their depreciation model is non-standard vs. what is used by other telecom companies & Two - They are booking the sales of subsidized devices under their retail subsidy - Reliance retail. If there is someone who understand this better, I would like to get more insight.

https://economictimes.indiatimes.com/industry/telecom/teleco...



So it is fraud?! Pretending you have a profitable business by hiding spiraling debt and other cost in a separate entity.


No. Jio (and Reliance) have actual paying users who are given genuine services that generate actual genuine revenue. And I doubt that the debt is going to spiral anywhere. Most of that debt was a one time deal to create a nationwide greenfield network.




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