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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The Indian telecom sector witnessed revenue stagnation in FY and FY due to high intense competition, it said. RCom saw its subscriber market share plunging from 9. 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.

NewsApp Free Read news as it happens Available on. Analysts point out that inRCom reliancd 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.

What went wrong with RCom, once India’s No 2 telco?

Will reconsider support to Raj, MP govts if Rail fares to go up next year: 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.

Some argue that RCom delayed 2101 monetisation programme, leaving it with little room to fight the battle.

Not many had expected this to happen so soon; most players thought they would have enough time to restructure and spring back. 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.

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Featured Today In Travel. 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.

Coommunication many years, RCom was seen as a leading player in the mobile telecom market. Business RBI to release new Rs. In just a month, the company lost over 10 million customers.

But its net-to-Ebitda ratio, which signifies loan paying capacity, nearly doubled in the same period. We have sent you a verification email. Comnunication 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 Compared to other emerging markets, the number of wireless network operators in the country far exceeds that of China, Brazil, Russia or Korea, the study said.

Analysts say one key reason was the huge debt burden communciation nearly doubled in the past eight years – from around Rs 25, crore in to Rs 45, crore, according to CLSA estimates.

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.

It added that competition in the Indian wireless market is amongst the highest globally. 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.

In contrast, other emerging markets have at least 80 per cent of the market share cornered by the top three operators, it added. Essar Shipping to convert Rs crore of debt into dollar loans.

The average revenue per user arou 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.

So, what went awry for the Anil Ambani company? 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.

RCom was hamstrung by the fact that lenders were worried it might have no choice but to keep costs on a close leash. How 2G case impacts telecom sector to this day India’s largest telecom firm will soon be born! It had launched GSM services two year earlier. 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 The move to the GSM technology, along with attractive tariffs 60 per cent lower than competitionwas rolled out communicatuon India in just 12 months.

They also point out that RCom did get into deals with Jio, bringing it cash.

But, this year, Anil Ambani sold the DTH business and got no cash, with the buyer taking only its debt. They say no one knew that Jio would change the market so fast.

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