Comments on: RCom – Etisalat sign pact for Telecom infrstructure sharing http://convergence.in/blog/2009/07/22/rcom-etisalat-sign-pact-for-telecom-infrstructure-sharing/ linking diversity! Sat, 11 Feb 2012 09:32:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chetan http://convergence.in/blog/2009/07/22/rcom-etisalat-sign-pact-for-telecom-infrstructure-sharing/comment-page-1/#comment-90449 Chetan Thu, 23 Jul 2009 03:50:20 +0000 http://convergence.in/blog/?p=874#comment-90449 Nitin: Show me one company where Ambanis are operating transparently :-) Reason for poor revenues was the GSM CAPEX. And in the next 2 years they will face 3G CAPEX and hence EPS is expected to go down. Not to forget the new operators cannibalization of ARPUs, Airtel will be more affected than RCom. Nitin:

Show me one company where Ambanis are operating transparently :-) Reason for poor revenues was the GSM CAPEX. And in the next 2 years they will face 3G CAPEX and hence EPS is expected to go down. Not to forget the new operators cannibalization of ARPUs, Airtel will be more affected than RCom.

]]> By: Nitin Jain http://convergence.in/blog/2009/07/22/rcom-etisalat-sign-pact-for-telecom-infrstructure-sharing/comment-page-1/#comment-90448 Nitin Jain Wed, 22 Jul 2009 17:36:08 +0000 http://convergence.in/blog/?p=874#comment-90448 Either Reliance Communications is too dumb to understand the gravity of what's going on or they are simply ignoring the facts. I dont understand why they have not responded to so many questions about their revenue numbers or the audit issue and are instead scorching on such deals. Is it because they want to pull the attention away from something that they dont have an answer for or are they trying to hide something? For the last Seven Quarters starting 30th June, 2007 and ending 31st December, 2008, the numbers for RCom and its peers tell the following tale: Reliance Communications % change in subscribers over seven quarters 96% % change in revenues over seven quarters 5% TTSL % change in subscribers over seven quarters 81% % change in revenues over seven quarters 23% Bharti Airtel % change in subscribers over seven quarters 104% % change in revenues over seven quarters 63% Vodafone Essar % change in subscribers over seven quarters 102% % change in revenues over seven quarters 56% Idea Cellular % change in subscribers over seven quarters 127% % change in revenues over seven quarters 68% One of the most dominant players in the Telecom sector is showing a increase in subscriber base of 96%, but a corresponding change in revenue of only 5%, when peers have an increase in revenue of as much as 4 times. Apert from this, there is the audit issue by TRAI and discrepancy between numbers reported to TRAI vs Annual Report which is close to Rs 7000 crore. Either Reliance Communications is too dumb to understand the gravity of what’s going on or they are simply ignoring the facts. I dont understand why they have not responded to so many questions about their revenue numbers or the audit issue and are instead scorching on such deals. Is it because they want to pull the attention away from something that they dont have an answer for or are they trying to hide something?
For the last Seven Quarters starting 30th June, 2007 and ending 31st December, 2008, the numbers for RCom and its peers tell the following tale:

Reliance Communications
% change in subscribers over seven quarters 96%
% change in revenues over seven quarters 5%

TTSL
% change in subscribers over seven quarters 81%
% change in revenues over seven quarters 23%

Bharti Airtel
% change in subscribers over seven quarters 104%
% change in revenues over seven quarters 63%

Vodafone Essar
% change in subscribers over seven quarters 102%
% change in revenues over seven quarters 56%

Idea Cellular
% change in subscribers over seven quarters 127%
% change in revenues over seven quarters 68%

One of the most dominant players in the Telecom sector is showing a increase in subscriber base of 96%, but a corresponding change in revenue of only 5%, when peers have an increase in revenue of as much as 4 times. Apert from this, there is the audit issue by TRAI and discrepancy between numbers reported to TRAI vs Annual Report which is close to Rs 7000 crore.

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