Reliance Communications, the Dual Network Operator in India just a while ago has launched an android App for both Reliance CDMA and GSM Mobile Customers through which they can instantly connect with the customer self services or for some of their grievances – like Deactivation of Services on Pre-Paid Accounts, etc
Airtel Mobile was the first one to launch such a Mobile App so that it could hide its deficiency in services which knocked Airtel’s Brand value significantly when Web Innovators Started Complaint Box which was flooded with complaints from Airtel users.
With the Reliance Android Mobile App, Consumers can perform the following tasks which could normally be done using the USSD Interface on Non-SmartPhone mobile phones.
Pre Paid Recharges
View Outstanding Bill
Check Balances on Pre-Paid
Activate / Deactivate Value Added Services
Get Latest Offers and Promotions
Download the Reliance InstaCard Mobile App here
RCOM’s strategy to pull back free minutes has impacted growth in traffic volume, but we believe this should improve going ahead. Its wireless revenue was up 2% q-q, driven by a 2% q-q increase in minutes. In comparison, Airtel and IDEA saw 5-8% q-q
minutes growth. Some 65% of the revenue mix is from GSM and mobile data, where growth is healthy, and RCOM believes it has stemmed the decline in its CDMA business. It is in the process of converting its CDMA network to data network to support higher levels of data usage.
RCOM added 2.4bn minutes in the quarter, implying 2% q-q growth. In contrast, Airtel and IDEA added 11-12bn minutes, hence recorded growth of 5-8% q-q. RPM remained flat for all the three players, although RCOM’s absolute number of 44p was ahead of Airtel’s and IDEA’s 41-42p. (more…)
Reliance Communications has an exhaustive 277K fibre optic network spanning domestically and globally.
120K km domestic intercity broadband fibre optic network. 70K km domestic intra city fibre optic network which links up to 1.15 mn buildings providing them fibre to the home (FTTH) as well as its towers. 22K route km of metro Ethernet fibre in the US, where RCOM provides a long-distance network and uses it to link up voice and data domestically along with its sub-sea cable. 65K km of sub-sea cable, with 46 landing points in 26 countries, operating on six of the eight major global data traffic routes.
The towers carry the company’s CDMA and GSM network. About 75% are ground-based and 25% are roof-top based. We estimate total replacement cost at US$8 bn for the company’s network assets.
Reliance Communications has hiked prices of some of its special tariff vouchers (STV) significantly (over 20%). For example, a STV of Rs46 is now offering 140minutes of on-net minutes vs. 200minutes earlier. This is the second major tariff hike by RCom in the last 6 months. Earlier, in Sep’12 RCom increased the base tariff of its per second plan by 25% (from 1.2p/sec to 1.5p/sec).
RCom’s recent hike is in-line with our view that voice RPM is likely to move up in the next 2-3 years. RCom and Tata DoCoMo were the initial few operators to create price disruption in the sector. Rational behaviour of RCom and Tata DoCoMo coupled with pull back of Telenor, Aircel, and Videocon from several service areas is likely to lead to better pricing, in our view.
We expect rationalization of discounted/free minutes to happen first followed by hikes in base tariffs. Based on our analysis, rationalization of discounted minutes is likely to increase voice RPM by 20%.
Last Week, Reliance Jio Infocomm [RJI] and Reliance communications announced Inter-City Optical Fiber sharing Deal. Reliance Jio Infocomm plans to launch a nationwide LTE network following its spectrum win in mid-2010.
Citigroup analysts Wrote, (more…)
Reliance Communications unveiled its new business strategy for the new Financial Year 2013-14.
RCom will focus on gaining incremental market share, optimizing its network, improving customer experience – particularly for data customers, optimizing cost structure, and improving branding. Management thinks that pricing power is back with larger telcos as smaller telcos are struggling given rising input costs. Management is focusing on gaining revenue market share, improve RPM and margins led by tariff improvement, and increased data usage.
By doing large deals with vendors like Alcatel and Ericsson, RCOM is reducing its number of vendors. The company has also reduced its manpower by about 9,000 as these employees will move to vendors. Management believes that eventually all telcos will move from the pan India “one size fits all” approach to cost-effective localized approach on advertising / marketing as the cost of differential spectrum pricing will result in telcos offering differential tariffs.