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RCOM lost 3.7M customers during Q1FY17, post CDMA-to-4G migration


Reliance Communications (RCOM) reported 38.9 million mobile Internet connections for the quarter ended June 30, 2016 (Q1FY17), which is up by 9.8% from 35.4 million connections in the corresponding quarter last year. When compared to the previous quarter, RCOM’s subscriber base growth remains flat at 38.9 million mobile Internet connections.

Interestingly, as RCOM makes the mandatory switch from CDMA to 4G, the company reported total customer base of 99.9 million at the end of Q1FY17, loosing close to 3.7 million connections during the quarter. In comparison, the company had reported a total subscriber base of 103.6 million at the end of last quarter. In the same quarter last year, RCOM had 111.1 million subscribers.

Note that RCOM had started discarding incidental mobile Internet users since 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/4G connections versus 2G connections

RCOM had initiated CDMA to 4G migration pan-India since early April, and by end of June 30th, its combined 3G/4G connection base stood at 25.4 million and now accounts for 65.29% of all data connections. The combined 3G/4G connections were up 4.95% quarter-on-quarter (QoQ) from 24.1 million 3G-only connections, and up 41.89% year-on-year (YoY) from 17.9 million 3G-only connections.

RCOM’s 2G connection base also decreased to 13.5 million in this quarter, from 14.7 million connection in the previous quarter. RCOM’s 3G connection base had surpassed its 2G mobile Internet connection base in Q1FY16.

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Mobile Internet data

– Data usage per connection decreased to 878 MB per data customer from 899 MB per data customer in the preceding quarter.

– Total data traffic on RCOMs network has increased to 102.4 billion MB, up 10% YoY and down 2.1% QoQ.

– Average revenue per user (ARPU) increased to Rs 148 for the current quarter from Rs 140 in the previous quarter, and decreased from Rs 157 in the corresponding quarter last year.

– Revenue per minute for the quarter remained almost flat at Rs 0.45 from Rs 0.48 in the previous quarter.

Voice revenues versus non-voice revenues

– The company reported voice revenues of Rs 4693.2 crore for the quarter ended June 30, 2016 (Q1FY17), which is up 41.8% from Rs 3308.4 crore in the previous quarter, and down 2.5% from Rs 4811.7 crore voice revenues in the same quarter last year.

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– RCOM reported non-voice revenues of Rs 1232.4 crore for Q1FY17, a decrease of 19.9% quarter-on-quarter (QoQ) from Rs 1538.8 crore non-voice revenues in Q4FY16.


– The company reported a consolidated net profit of Rs 54.2 crore, up 6.4% from Rs 51.0 crore in the preceding quarter.

– Total consolidated revenue stood at Rs 5361.2 crore for this quarter, down 3.8% from Rs 5570.4 crore in Q4FY16.

– India operations revenues were at Rs 4693.2 crore during this quarter, down 2.5% from Rs 4811.7 crore in the preceding quarter.

– Overall EBITDA stood at Rs 1560.1 crore for Q1FY17.

Download: Quarterly Report

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