Reliance Communications to Franchise Reliance World + Competing Offer for DoCoMo – MTS
Last evening I had a chance to dial into Reliance Communications Earnings Call and here is an excerpt from the Sr. Management [ex Ambani]. My comments will appear in Italics.
- Satish Sheth, Group MD of RCom said – The company has received encouraging response after the end of Customer Experience program which was launched during nationwide GSM roll out. The company was able to migrate them to other plans and retain them [No Numbers were disclosed]. RCom is the Largest Wireless operator in the country covering 90% of population and is also the Largest Wireless Data carrier. The company remains bullish on Reliance NetConnect Broadband+ service launched on CDMA network using the EVDO technology. [No Subscriber Numbers disclosed ] RCom is planning to add more Reliance World stores on franchise model.
Open Network Platform + Net Neutrality – Google joins Planet Lab
In an effort to maintain Net Neutrality and keep it as an FREE Open Platform, Google has joined the Planet labs initiative and have launched Measurement Lab. The goal of Measurement labs is,
The goal of M-Lab is to advance network research and empower the public with useful information about their broadband connections. By enhancing Internet transparency, M-Lab helps sustain a healthy, innovative Internet.
M-Lab is providing consumers with a set of tools to perform ISP / Broadband network related tests. Note that, analyzing your result set [using your IP ] they will get to know how the ISP is controlling the traffic – Blocking Torrents, P2P Traffic etc.
Since the news broke out, their servers have been too busy and thus, this post being delayed to accomodate your tests. Here are our results of Results of tests carried out on Airtel’s Broadband network – Torrent Traffic manipulation Test and Network Diagnostic Test. You can preform the following tests,
- Broadband Speedtest [You are probably familiar]
- Network Diagnostic Test – [This server is working]
- Test for Torrent Blocking or Choking [ Server overloaded, but try]
- Network Path and Application Diagnostic Test [ List of Servers ]
- Diffprobe – is the ISP prioritizing traffic ?
- Nano – degrading certain specified users or applications.
So far we didn’t see any problem with Airtel Broadband. Do let us know if you find any discrepancy with your ISP.
Nimbuzz connecting VoIP Operators with Social Networks
Nimbuzz which partnered with largest German social network - StudiVZ has announced partnerships with several VoIP service providers. They are facilitating arrangements between service providers and content owners. Jahangir Raina at iLocus says that they will be the first VoIP operator to make money. The Nimbuzz release said,
By joining the Nimbuzz Operator Affiliate Program and integrating their VoIP offering with Nimbuzz, partners have the opportunity to provide customers with mobile communication and social networking value added services at a substantially accelerated speed to market and without incurring additional overhead costs. Operators and SIP providers joining the Nimbuzz affiliate program will also benefit from new revenue streams and exposure to the community of Nimbuzz subscribers in over 200 countries.
Four Indian operators – Adepto Telecom, Amtelfone, Apnatelelink and VoIP Hit have joined Nimbuzz.
Skepticism on Tata WiMax Broadband reaches Dalal Street
Analysts do give a company sometime before they react on recommending a stock and the amount of time Tata Communications got was more than anybody expected. What is really commendable is the report released by HSBC Telecom Analysts – Sharma and Grinnan who have openly expressed their views against Tata Communications WiMax Broadband.
The authors say,
We have a sceptical view on WiMax, especially as an effective solution for retail broadband. Furthermore, the recently announced broadband policy is ambiguous and near-term release of broadband spectrum looks unlikely. In our view, WiMax faces a variety of technical challenges, including global spectrum fragmentation, performance issues relating to TDD operation, technical power management and sub-optimal mobility and voice support. Given this, we believe raising finance to fund WiMax initiatives would lead to value destruction.
It is only now that the management really wakes up to fix issues as Investors began to question them. E-Mail sent to Tata Communications went unanswered [Thanks to Google Apps, I still have the mail in my archive]. Maybe with the departure of laidback President [Broadband & Retail] Shankar M. Prasad, services will improve in the company. Also, WiMax as a technology is yet to mature and deliver its best, hopefully it will.
Internet Telephony set to be Legal within India
TRAI has released recommendations [DoT is likely to accept them with some modifications] permitting ISPs to offer unrestricted internet telephony [permitting them to terminate calls on PSTN/PLMN networks]. Until now only international VoIP telephony was legal. NLD operators shall be permitted to connect to public internet and shall have mutual agreement for unrestricted telephony.
Telephone numbering scheme from identified blocks to be made available for internet telephony. Shortcomings of the recommendations are, Emergency Number calling and Quality of service are not mandated.
In 1999-2000, NLD / STD Tariff per minute was Rs 30 and today it is at Rs 1.0 which is likely to fall further with the introduction of VoIP telephones. By 2010, you will have unlimited / heavy calling plans [5,000 minutes or Night Weekend Free Calling] on your mobile within India 
Update: It is likely that most Telecom companies will introduce calling cards where they will route the traffic on IP networks thus enabling them to launch products faster into the market.
Reliance Communications – Wireless Business rings cash registry
Reliance Communications, an integrated Telecommunications company today announced its results for the quarter ended June-08. Key highlights of the results and conference call are as follows,
- Wireless Business [GSM + CDMA] continues to fill the company’s coffers. 18% wireless market share on PAN India basis. Slightly over 50 mn subscribers. Brings in 67% of the company’s revenue. ~91% pre-paid customers and 9% post-paid customer base. ARPU nosedives to Rs 282 with declining Minutes of usage 424 / month which is a cause of concern for Investors. Wireless revenue per month down to Rs 0.66 from 0.74. Mr. Prakash Bajapai of RCom seemed to be comfortable with Rs 0.66 paise and said, Other players RPM have come down to RCom level.
- RCom has 60% market share of the data card and USB Modem Internet access market.
- Mr. Ambani said, We have the management bandwidth to compete and grow organically and inorganically. To a question on GSM rollout an concerns about tariff war, Mr. Shukla said, It is not just the tariffs factor over which the customer chooses a service provider. Other factors like Quality, Reach and Network Capability. RCom’s entire GSM network will be EDGE compatible.
- Reliance Globalcom business is the second largest vertical for the company with 24% revenues contribution. Total ILD Minutes usage was down sequentially to 1,726 mn from 1,769 a quarter ago. However, NLD minutes went up to 6,641 mn from 5,964. NLD is not strictly comparable as some Reliance OnNet packages offers Unlimited calling anywhere in India.
- Reliance Broadband brought in 8% of the total revenues. Reliance Broadband is the only division in the company to have reported positive growth on QoQ basis with Net revenues up 8.8% and EBITDA up by 8.9% QoQ basis. The division now has 1.15 mn customers [broadband + narrowbrand]. But look at their ARPU in broadband segment which is whopping Rs 1,715 ~ Rs 600 higher than Bharti Airtel. Reliance has wired up 0.821 mn building across 42 cities. BSNL has 2.3 mn broadband subscribers and Bharti Airtel 0.85 mn at the end of June-08.
- Coming to the bottomline, PAT was almost flat QoQ basis at Rs 15,123 mn.
RCom continues to invest aggressively in CAPEX. Reliance Infratel and Globalcom IPO on hold due to heavy volitality in the stock markets. 3G policy will be announced in few hours, lets see if it’ll be acceptable to all the telcos.
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