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Reliance Communications Q1-FY13 Concall: Data Will Be A Rs 37000 Crore Business In 4-5 Yrs

Reliance communications’ conference call has begun, with the company mostly focusing on the growth in its data business. In its results, it claimed 4 million active 3G users, and 24 million data (2g + 3g) users. Read about the results here.

1240 hrs: Concall begins at 1240 hrs, instead of the announced timing of 1230hrs. Indian standard time.
1242 hrs:  Revenue per minute is amongst the highest in the industry at 43 paise per minute
1243 hrs: Global and enterprise business unit contributes 36% of RCOM’s business. “CAPEX intensity is behind us”.
1244 hrs:  Gurdeep Singh, the new CEO of RCOM’s wireless business is on his first concall. Lets hope they give
Non voice contribution to overall revenue is 23%. Positive about data grown. Data market is 7000 crore, and is expected to grow to 37000 crore in the next 4-5 years, and around 60% of incremental industry revenues. RCOM is targeting to lead this growth. RCOM’s network is build for the internet. 3G network has the capactity to deliver 31mbps across. Have deployed end to end internet protocol enabled elements across network, an “ethernet superhighway”. Featurephones will become redundant. Smartphones will grow to 80% of the market by 2015. relationship with 35000 small and large enterprises, and large fibre network across the country.

Focusing on making available 3G and HSD devices, and has introduced feature rich 3G and CDMA tablets. There has been an explosive growth in the tablet market in India. RCOM has launched a new android tablet, priced at Rs 14499, with data and voice plans.

1249 hrs: have adopted a deeply segmented approach to voice. Differentiated approach for 900 Mhz circles, metro markets. A localized approach has been adopted in terms of products.

There’s a GIS based distribution to map retailer productivity.

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Will launch a complete portfolio of mid range and smart phones.

There hasbeen a significant increase in android customers on the RCOM network, following the Android tie-up.

2G networks became profitable after 8-10 years of rollout. Industry paid a high price for 3G, and it’s been only 1 year.

1259hrs: mostly info on the enterprise business. RCOM will provide connectivity for the Madhya Pradesh Border force.

1300hrs: Capex requirements will be met through internal accruals.

1313hrs: Have an intracircle arrangement with Aircel, and are exploring partnerships with others.

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1321hrs: We have 900 Mhz (RTL circles), and 2G spectrum in 14 other circles. Our GSM positioning is different in different markets. One size doesn’t fit all. We’re taking the “circle as a country” strategy.

1325hrs: average consumption of data on RCOM networks is 240 mb per subscriber per month.

1326hrs: We have over 20% share of the existing Rs 7000 crore data market.

Operator says “there are no further questions”, even though we have applied. Looks like we got kicked out from the questions queue by RCOM. Our questions were primarily around VAS versus data at RCOM, and also on the data card subscriber base.

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



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