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RCOM Reports 9.1M 3G, 34M Data Subs For Q2-FY14; 385MB Data/Sub

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Reliance Communications (RCOM) has reported a total 34 million data connections for the quarter ended September 30, 2013 (Q2-FY14), up 9.3% quarter-on-quarter (QoQ). It added 2.9 million data connections for the quarter, as compared to 1.7 million connections in the previous quarter.

Of the 34 million data connections, 9.1 million are 3G connections, which saw a 18.2% growth QoQ, which was probably driven by the reduction in its 3G prices. The company claims to have largest 3G customer base in the industry, however we’re not sure whether RCOM classifies its EVDO data card users as 3G users or merely “data users”. The numbers:

– 2.9 million data connections added during the quarter, as compared to 1.7 million data connections added last quarter.
– Data subscriber base is up 9.3% to 34 million connections from 31.1 million connections in the previous quarter.
– 3G connection base increased by 18.2% to 9.1 million connections from 7.7 million connections in the previous quarter.
– 2G connection base increased by 6.4% to 24.9 million connections from 23.4 million connections in the previous quarter.
– Data traffic on its network has increased to 37,750 million MB, up 21.6% from 31,050 million MB in the previous quarter.
– Data usage per subscriber is up 12.6% to 385MB per connection from 342 MB last quarter, which RCOM claims is the highest in the industry.
– Non-voice accounts for 23.1% of RCOM’s wireless revenues for the quarter, down from 24% in the previous quarter.
– RCOM has 3G coverage in 333 towns across India and it has 11,659 3G sites across the country, same as 11,659 sites in the previous quarter.

RCOM-Apple Partnership: Earlier this month, RCOM tied-up with Apple to launch an EMI-like 2 year contract plans on the recently launched iPhone 5C and iPhone 5S, wherein users can get these phones on a monthly plan of Rs 2,599 (iPhone 5c) or Rs 2,999 (iPhone 5S) for the next 24 months – which includes the iPhone handset cost, unlimited local and STD calls, 3,000 SMS per month, national roaming and unlimited 3G data.

The company was offering these phones for zero to a moderate down payment, depending on the handset model (zero down payment for the 16GB models and around Rs 11,000 down payment for the 32 GB and the 64GB model). (Also readIs The Reliance Apple iPhone 5S Offer Worth It? – Capital Mind)

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Yesterday, The Hindu Business Line reported that RCOM had sold out its initial shipment of 2,500 units in first three days and is awaiting for more stock from Apple’s India distributor Redington, citing market sources. It also mentioned that RCOM had received around 10,000 bookings overall.

3G plans at 2G prices: During the quarter, RCOM also reduced its 3G rates by 50%, making its 3G data plans cheaper than its 2G data plans for all new and existing subscribers. It had also launched a special MNP offer, offering new customers through MNP with 1GB of 3G data free per month for two months.

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