Reliance Communication

© Reliance Communications (R-COM) is leading integrated telecom providing entire gamut of telecom services including wireless, wireline, broadband, carrier, and data services. R-COM, India’s second largest wireless operator, offers both CDMA (21 circles) and GSM-based wireless services (in 8 circles) and operates in all 23 telecom circles in India. It also enjoys strong position in long distance and broadband segments. Company expects to commence IPTV and DTH services by the end of FY 2008 E.

© Recently, RCOM has received requisite Government approvals and spectrum to roll-out GSM services in additional 14 circles wherein it expects to launch GSM services by end of CY 2008, making it the only player in the country offering both GSM and CDMA (Dual Technology) services on nationwide basis.

© R-COM’s global division is leveraged on strong network platform comprising pan-India optic fiber network of 100,000 km (another 30,000 km to be added in FY 08) and global network comprising FLAG & FALCON spanning ~ 40 countries across Europe, North Africa, Middle-East and Asia. R-COM intends to spend additional US $ 1.5 billion over next 3 years to build IP-overlay on FLAG’s sub-sea cable network (FLAG NGN) adding 50,000 km of additional undersea optic fibre cable. On completion, FLAG network will span over 115,000 km and increase coverage to 60 countries.

© R-COM acquired Yipes (San Francisco) providing it with high-speed data network access to 1,000 customers in 14 US cities, operating optic fiber network of more than 22,000 km. Yipes has operating margin of 55% and is cash positive.

© Company has hived off its passive infrastructure (mainly 14,000 towers) into a separate subsidiary called Reliance Infratel. Infratel had filed prospectus for IPO of 8.92 crore equity shares of face value of Rs 5/- amounting to 10% of its post-issuance paid-up equity capital. Company also plans to list its global subsidiary FLAG in couple of quarters. This is expected to unlock huge value for R-COM.

© Company has acquired Anupam Global Soft, Uganda, a company holding Public Infrastructure Provider License (PIPL) & Public Service provider License (PSPL), under which, R-COM to offer mobile, fixed line, internet, national and international long distance services in addition to Wi-Max and Wi-Fi services.

© Company is consolidating its overseas business under one umbrella – Reliance Globalcom, 100% subsidiary of R-COM - bringing under its fold, Flag Telecom, Yipes Communications and R-COM’s international business; all put together addressable revenue potential of US $ 285 billion annually. Reliance Globalcom has acquired UK based eWave World, offering wireless telephony services using Wi-Max technology. Globalcom plans to invest Rs. 2,000 crore over next few years to build and acquire Wi-Max networks in emerging markets in different continents.

© R-Com has submitted a bid to acquire US $ 9.2 billion MTN, South African telecom company.

For FY 2008, RCOM recorded 31.8% increase in its consolidated net revenues at Rs.190.7 billion. OPM% saw marked improvement from 39.5% to 43.1% during the period. Consequently, net profit surged by 70.8% to Rs. 54.0bn (Rs. 31.6 billion).