Reliance Communications (RCOM) has reported 37.2 million mobile Internet connections for the quarter ended September 30th 2015 (Q2FY16), up 5.08% from 35.4 million mobile Internet connections in the previous quarter, and 25.25% from the same quarter last year.

Note that RCOM had started culling incidental mobile Internet users from Q4FY15. Incidental data users are users who have consumed less than 1 MB/month. This followed a similar move from Idea Cellular in Q3-FY14 and Airtel in Q1-FY15. Idea Cellular now only includes those users who consume more than 10 MB/month.

3G connections versus 2G connections

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RCOM’s 3G connection base stood at 19.1 million and now accounts for 51.34% of all data connections. 3G connections were up 6.70% quarter-on-quarter and up 26.49% year-on-year.  The 2G connection base also increased to 18.1 million, from 17.5 million in the previous quarter. RCOM is now adding more 2G users than before, after a few slow quarters.

RCOM’s 3G connection base has surpassed its 2G mobile Internet connection base in the preceding quarter, and it is probably the only telecom operator for which this has happened.

Mobile Internet data

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– Data usage per connection increased to 894 MB per data customer, from 752 MB per data customer a year ago, up 18.88%.

– Data traffic on RCOMs network has increased to 97.3 billion MB, up 48% from 65.78 billion MB a year ago, up 48%. This was due to increase in data subscribers and higher data usage per customer.

– Non-voice revenues accounted for Rs 1248.2 crore for RCOM

– Average revenue per user (ARPU) declined to Rs 138 for the quarter, from Rs 140 in the previous quarter.

– Revenue per minute for the quarter increased to Rs 0.448 from Rs 0.445 in the previous quarter.


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– The company reported a consolidated net profit of Rs 1559 crore, up 1.59% from Rs 1530 crore in the same quarter last year.

– Total consolidated revenue stood at Rs 53,553 crore down marginally by 0.9% from Rs 54,026 in Q2FY15.

– India operations revenues were at Rs 4,701 crore during the quarter, up 0.4% from Rs 4680.2 in the same period last year.

– EBITDA stood at Rs 1782 crore, down 2.5% y-o-y.

Other developments

– In the quarter, RCOM and Sistema Shyam Teleservices Limited (SSTL) which operates as MTS in India announced that they were merging their operations. More on that here.

– RCOM entered into a partnership with Internet of Things platform provider Jasper, for providing enterprises with a platform to launch their IoT services.

– RCOM also announced that it brought on board one million Indians to experience the Internet via Facebook’s zero rating service

Download: Quarterly report