statements” by Reliance Communications Ltd (“RCOM”) that are not historical in nature. Consolidate data market leadership with high ARPU 3G services & high speed datacards . ~ Mn wireless subscribers at the end of Sept Reliance Communications. FY FY & FY Journey so far Consolidate data market leadership with high ARPU 3G services & high speed. By Saptarishi Dutta [email protected] May 31, RCom’s wireless ARPU decreased marginally to Rs this quarter, from Rs that it.
|Published (Last):||24 December 2011|
|PDF File Size:||15.69 Mb|
|ePub File Size:||5.78 Mb|
|Price:||Free* [*Free Regsitration Required]|
RCom saw its subscriber market share plunging from 9.
Its revenue market share, which was under 6 per cent in the second quarter ofslid to communicationn than 4 per cent by the first quarter of With the writing clearly on the wall, RCom in Xrpu announced it was closing down its 2G and 3G services. In contrast, other emerging markets have at least 80 per cent of the market share cornered by the top three operators, it added.
Login from existing account Facebook Google Email. Rail fares to go up next year: The move to the GSM technology, along with attractive tariffs 60 per cent lower than competitionwas rolled out across India in just 12 months. Featured Today In Travel. That debt pile would have been okay if the company was also rolling in commensurate revenues and income.
The largest Indian operator has 20 per cent of subscriber market share and the top three operators cumulatively have less than 50 communicattion cent market share, said the report.
Communicxtion say one key reason was the huge debt burden relliance nearly doubled in the past eight years – from around Rs 25, crore in to Rs 45, crore, according to CLSA estimates. RCom was hamstrung by the fact that lenders were worried it might have no choice but to keep costs on a close leash. Read Post a comment. With a market share of over 17 per cent, RCom had been on a roll as the clear number two in Business RBI to release new Rs. But competition was turning fierce, with the number of players doubling from seven to 14 as the erstwhile communications minister A Raja issued new licences in InRCom lost the number two slot to Vodafone, slipped to number four within two years, and further down in when its market share shrunk to less than 10 per cent.
The Indian telecom sector witnessed revenue stagnation afpu FY and FY due to high intense competition, it said.
Compared to other emerging markets, the number of wireless network operators in the country far exceeds that of China, Brazil, Commujication or Korea, the study said. Two years earlier, the company was also in talks with private equity fund TPG and Tillman to sell its tower and fibre assets for over Rs 30, crore.
To verify, just follow the cmmunication in the message. For many years, RCom was seen as a leading player in the mobile telecom market.
It had launched GSM services two year earlier. But its net-to-Ebitda ratio, which signifies loan paying capacity, nearly doubled in the same period. But, this year, Anil Ambani communiation the DTH business and got no cash, with the buyer taking only its debt.
Essar Shipping to convert Rs crore of debt into dollar loans. How 2G case impacts telecom commmunication to this day India’s largest telecom firm will soon be born! Share on Facebook Share on Twitter. All Comments Your Activity.
Its approach had been equally aggressive with 3G services as well – it had shelled out over Rs 5, crore to buy 3G spectrum in 13 circles, including in expensive Delhi and Mumbai circles. Not many had expected this to happen so soon; most players thought they would have enough time to restructure and spring back.
They also point out that RCom did get into deals with Jio, bringing it cash. The problem, analysts say, is also that RCom was able to put only a minimal fresh capital expenditure into business in the past three years. Will reconsider support to Raj, MP govts com,unication They say no one knew that Jio would change the market so fast. It added that competition in the Indian wireless market is amongst the highest globally. Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community.
In the meantime, RCom had pegged its survival hopes on a three-way merger — first with Shyam Sistema which took place and then aepu Aircel to substantially reduce its debt and give the merged entity a fair chance as the fourth-largest player with a reasonable market share.
The average revenue per user of mobile operators have declined by up to 24 per cent during the period between and due to increased cost to support customer service, said a study. When Anil Ambani had got the telecom company as part of the family settlement, it was primarily a CDMA player dealing in a technology that was slowly losing traction. NewsApp Free Read news as it happens Available on. We have sent you a verification email.
Let’s work together to keep the rekiance civil. So, what went awry for the Anil Ambani company? It attributed the decline in ARPU to “rapidly evolving technology environment and increased cost to support improved customer service offerings”.
What went wrong with RCom, once India’s No 2 telco?
Help us delete comments that do not follow these guidelines by marking them offensive. Some argue that RCom delayed its monetisation programme, leaving it with little room to fight the battle. But others say that with the obvious need for more towers as players move to increase 4G coverage and plan for the upcoming 5G inthe more you held on would have translated into that much higher price.
This was at a time when the big boys were pumping in Rs 15, or more annually to increase their coverage, as well as to get LTE 4G-ready for taking on Jio.
Analysts point out that inRCom was reportedly close to a deal to merge its direct-to-home business with Sun TV in which it would have kept a 26 per cent stake, valued at Rs 1, crore. In just a month, the company lost over 10 million customers.