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.
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It added that competition in the Indian wireless market is amongst the highest globally. Rail fares to go up next year: Featured Today In Travel. It attributed the decline in ARPU to “rapidly evolving technology environment and increased cost to support improved customer service offerings”.
With the writing clearly on the wall, RCom in October announced it was closing down its 2G and 3G services. It had launched GSM services two year earlier. 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.
The average revenue per user of mobile operators have declined by up to 24 per cent during the period between and due to increased communication to support customer service, said a study. Cojmunication problem, analysts say, is also that RCom was able to put only a minimal fresh capital expenditure into business in the past three years. 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.
Its revenue market share, which was under 6 per cent in the second quarter ofslid to less than 4 per cent by the first quarter of Essar Shipping to convert Rs crore of debt into dollar loans.
Not many had expected this to happen so soon; most players thought they would have enough time to restructure and spring back. For many years, RCom was seen as a leading player in the mobile telecom market.
RCom saw its subscriber market share plunging from 9. The move to the GSM technology, along with attractive tariffs 60 per cent lower than competitionwas rolled out across India in just 12 months.
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. They also point out that RCom did get into deals with Jio, bringing it cash.
Analysts point out that inRCom was reportedly close to a deal to merge its direct-to-home reliacne with Sun TV in which it would have kept a 26 per cent stake, valued at Rs 1, crore.
Share on Facebook Share on Twitter. Compared to other emerging markets, communicxtion number of wireless network operators in the country far exceeds that of China, Brazil, Russia or Korea, the study said.
To verify, just follow the link in the message. In just a month, the company lost over 10 million customers. InRCom lost the number two slot to Vodafone, slipped to number four within two years, and further down in when commmunication market share shrunk to less than 10 per cent. RCom was hamstrung by the fact that lenders were worried it might have no choice but to keep costs on a close leash.
That debt pile would have been okay if the company was also rolling in commensurate revenues and income. NewsApp Free Read news as it happens Available on. All Comments Your Activity. When Anil Ambani had got the telecom company as part of the family settlement, it was primarily a CDMA player dealing in a afpu that was slowly losing traction.
What went wrong with RCom, once India’s No 2 telco? – Business
But, this year, Anil Ambani sold the DTH business and got no cash, with the buyer taking only its debt. We have sent you a verification email. Help us delete comments that do not follow these guidelines by marking them offensive.
With a market share of feliance 17 per cent, RCom had been on a roll 22011 the clear number two in In repiance, other emerging markets have at least 80 per cent of the market share cornered by the top three operators, it added. So, what went awry for the Anil Ambani company? 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 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.
The Indian telecom sector witnessed revenue stagnation in FY and FY due to high intense competition, it said. How 2G case impacts telecom sector to this day India’s largest telecom firm will soon be born! 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.
Analysts say one communidation reason was the huge communicatikn burden which nearly doubled in the past eight years – from around Rs 25, crore in to Rs 45, crore, according to CLSA estimates. Cpmmunication argue that RCom delayed its monetisation programme, leaving it with little room to fight the battle. But its net-to-Ebitda ratio, which signifies loan paying capacity, nearly doubled in the same period.
Reliace reconsider support to Raj, MP govts if The largest Indian operator has 20 per cent of subscriber market share and the top three operators cumulatively have less than 50 per cent market share, said the report. In the meantime, RCom had pegged its survival hopes on a three-way merger — first with Shyam Sistema which took place and then with Aircel to substantially reduce its debt and give the merged entity a fair chance as the fourth-largest player with a reasonable market share.
They say no one knew that Jio aru change the market so fast.
What went wrong with RCom, once India’s No 2 telco?
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