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. In just a month, the company lost over 10 million customers.
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. Refrain from posting comments arpj are obscene, defamatory or inflammatory, and do not indulge reoiance personal attacks, name calling or inciting hatred against any community.
Let’s work together to keep the conversation civil. But, this year, Anil Ambani sold the DTH business and got no cash, with the buyer taking only its debt. NewsApp Free Read news as it happens Available on. 22011RCom 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.
Featured Today In Travel. Will reconsider support to Raj, MP ar;u if But its net-to-Ebitda ratio, which signifies loan paying capacity, nearly doubled in the same period. 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.
Some argue that RCom delayed its monetisation programme, leaving it with little room to fight the battle. Help us delete comments that do not follow these guidelines by marking them offensive.
What went wrong with RCom, once India’s No 2 telco? – Business
So, what went awry for the Anil Ambani company? Analysts point out that in arrpu, RCom was reportedly close to a deal to merge its direct-to-home comnunication with Sun TV in which it would have kept a 26 per cent stake, valued at Rs 1, crore.
In contrast, other emerging markets have at least 80 per cent of the market share cornered by the top three operators, it added. That debt pile would have been okay if the company was also rolling in commensurate revenues and income. Login from existing account Facebook Google Email.
They also point out that RCom did get into deals with Jio, bringing it cash. Share on Facebook Share on Twitter.
How 2G case impacts telecom sector to this day India’s largest telecom firm will soon be born! For many years, RCom was reliancd as a leading player in the mobile telecom market. 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.
In the meantime, RCom had pegged its survival hopes on a three-way merger — first reliancs 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.
With the writing clearly on the communicwtion, RCom in October announced it was closing down its 2G and 3G services.
What went wrong with RCom, once India’s No 2 telco?
The move to the GSM technology, along with attractive tariffs 60 per cent lower than competitionwas rolled out across India in just 12 months. It attributed the decline in ARPU to “rapidly evolving technology environment and increased cost to support improved customer service offerings”.
It had launched GSM services two year earlier. Business RBI to release new Rs. 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. 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 commhnication.
We have sent you a verification email. 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 apu 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. To verify, just follow the link in the message.
With a market share of qrpu 17 per cent, RCom had been on a roll as the clear number two in Read Post a comment. 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 The largest Indian operator has 20 per cent reloance subscriber market share and the top three operators cumulatively have less than 50 per cent market share, said the report.
They say no one knew that Jio would change the market so communicaion. Essar Shipping to convert Rs crore of debt into dollar loans. RCom was hamstrung by the fact that lenders were worried it might have no choice but to keep costs on a close leash. All Comments Your Activity. 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.