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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Not many had expected this to happen so soon; most players thought they would have enough time to restructure and spring back. 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.
What went wrong with RCom, once India’s No 2 telco?
NewsApp Free Read news as it happens Available on. 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. 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.
But its net-to-Ebitda ratio, which signifies loan paying capacity, nearly doubled in the same period. Let’s work together to keep the conversation civil. 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.
It attributed the decline in ARPU to “rapidly evolving technology environment and increased cost to support improved customer service offerings”. 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 say one key reason was the huge debt burden which nearly doubled in the past eight years – from around Rs 25, crore in to Rs 45, crore, according to CLSA estimates.
RCom saw its subscriber market share plunging from 9. With the writing clearly on the wall, RCom in October announced it was closing down its 2G and 3G services. 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.
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.
Essar Shipping to convert Rs crore of debt into dollar loans. 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 arrpu debt and give the merged entity a fair chance as the fourth-largest player with a reasonable market share.
– Reliance Communications
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With a market share of over 17 per cent, RCom had been on a roll as the clear number two in 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. The Indian telecom sector witnessed revenue stagnation in FY and FY due to high intense competition, it said.
It added that competition in the Indian wireless market is amongst the highest globally. Login from existing account Facebook Google Email.
What went wrong with RCom, once India’s No 2 telco? – Business
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. Read Post a comment.
The move to the GSM technology, along with attractive tariffs 60 per cent lower than competitionwas rolled out across India in just 12 months. In contrast, other emerging markets have at least 80 per cent of the market share cornered reliabce the top three operators, it added.
So, what went awry for the Anil Ambani company? They also point out that RCom did get into deals with Jio, bringing it cash. Some argue that Communidation delayed its monetisation programme, leaving it with little room to fight the battle.
Business RBI communicatiln release new Rs. 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. In just a month, the company lost over 10 million customers. Will reconsider support to Raj, MP govts if Analysts point out that inRCom was reportedly reiance 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.
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 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 To verify, just follow the link in the message. 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.
All Comments Your Activity. 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. Rail fares to go up next year: Share on Facebook Share on Twitter. How 2G case impacts telecom sector to this day India’s largest telecom firm will soon be born!