AS per the management of
Reliance Communications [RCom] not much revenues from the mega Rs120 bn tower contract with RJio have been booked in RCOM's numbers so far. This is surprising since: (1) other tower companies have indicated that they will start booking revenues as soon as they deliver towers to RJio (irrespective of when RJio actually installs equipment), (2) our channel checks suggest that a large number of RJio's towers have been installed on RCOM's towers already and (3) other towercos such as Viom have indicated that they are earning revenues from RJio.
We are concerned that
RCOM's contract with RJio could be structured in a way that payment milestones come with a delay (possibly linked to RJio's own launch)?quite unusual for structuring these contracts.
