reliance-mobile

Different Strengths of Different Telecom Companies

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Different Business models of Indian TElecomWithin Indian Telecommunications Companies, no single telco has a clear and significant competitive edge. On like-for-like comparison of metrics such as scale, distribution, financial strength, regulatory hedge, etc, Airtel arguably fares better – looking both over the past five years and into the next five years. This also takes into account the ability to capitalise on the changing revenue mix going forward – from voice to data.

Otherwise, there are pockets of operational and network strength for each telco, such as Idea Cellular’s impeccable execution in recent years. Even Reliance Communications can never be underestimated given its extensive

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RCom’s Tower Assets for Reliance Jio Infocomm – Not Suitable

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Reliance Communications co-operation with Reliance Jio Infocomm is expected to be extended to tower assets and intra-city fibre assets as well. We raised some Key Questions with the managements of both the companies which have went un-answered. 1. Quantum of towers which will come up for monetization over next 2 years- We are of the … Read more

RCom – Sending Mixed Signals

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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.

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RCom raises price of its tariff vouchers significantly

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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 … Read more

Reliance Communications’ Tariff Hikes in Feb-2013

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Along with incumbent GSM Lobby comprising of Airtel, Vodafone and Idea Reliance Communications has carefully hiked voice call tariffs in selected circles and not across India. The following chart shows the Tariff hikes by Reliance Communications in Feb-2013. What do you think of RCom’s Mobile QoS ? is it poor that it is unable to … Read more