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.