Free Essay

Rcom

In:

Submitted By Saurabh
Words 300
Pages 2
hello how are u

Reliance Communications has a reliable, high-capacity, integrated (both wireless and wireline) and convergent (voice, data and video) digital network. It is capable of delivering a range of services spanning the entire infocomm (information and communication) value chain, including infrastructure and services — for enterprises as well as individuals, applications, and consulting.
Today, Reliance Communications is revolutionising the way India communicates and networks, truly bringing about a new way of life.

II. Strategic Issues:
(3 Issues in Bullet form)
Out of these three, identify one core issue and the rest of the ppr will be around that issue.

Rapidly dropping ARPU’s in lieu of GSM expansion (Average Revenue Per User) & henceforth CDMA operations taking a backseat

Dynamic Regulatory policies

Danger of getting into a Debt Trap, on account of its huge Capital Expenditure Plans

Competition from established private players like Bharti Airtel & Vodafone & Government owned BSNL.

III. External Analysis:
One or Two Para's summarizing the exhibits for external analysis

Indian telecom has seen phenomenal growth of close to 70% CAGR & recently crossed the 400 mn mark, as far as phone connections are concerned. This growth is primarily driven by mobile connections. However the rural India which accounts for 70% of India’s population, has a tele-density of close to 12% only. This represents huge growth opportunity.

Indian Telecom Industry is placed between Government Regulation & Fair Competition. However off late the pull towards Competition is getting fierce. With new entrants like Unitech & Swan there would be on an average 8 operators per circle making going tough.

Also the Government Regulating bodies like DOT & TRAI haven’t been prompt enough to bring in the changes. This is clearly proved as critical issues like MNP (Mobile Number Portability) & 3G auctions have been postponed every now & then.

Similar Documents

Free Essay

Rcom

...Investor Presentation March, 2011 Forward looking statements – Important Note This presentation and the discussion that follows may contain “forward looking statements” by Reliance Communications Ltd (“RCOM”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the directors and management of RCOM about th b i th di t d t f b t the business, i d t and markets i industry d k t in which RCOM operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond RCOM’s control and difficult to predict that could cause actual results predict, results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of RCOM In particular such statements RCOM. particular, should not be regarded as a projection of future performance of RCOM. It should be noted that the actual performance or achievements of RCOM may vary significantly from such statements statements. Confidential 2 of 39 Contents Reliance Communications – an integrated telco Wireless p Global Enterprise Home Key takeaways Ke takea a s Confidential...

Words: 2825 - Pages: 12

Premium Essay

Rcom

...|Contents |Page Nos | |Introduction |3 | |Valuation Objective : Value company’s stock using alternative methods |3 | |DCF – growth assumptions and cost of capital, |5 | |Valuation using RIV (Residual income valuation) |6 | |Source of data | | |Justification of growth | | |Justify cost of capital | | |Valuation using multiples with sound justification of comparables along with assumptions made |8 | |Analysis of why different methods give different results | | ...

Words: 1828 - Pages: 8

Free Essay

Foreign Debt Crisis Amangement of Rcom

...International Financial Management (IFM) Individual Project Report Title of the project- Foreign Debt crisis management of RCOM Batch–PGCBM -21 Centre –DAKC, Mumbai Name- Rajesh Kumar Verma Email- rkv3466@gmail.com, rajesh.kr.verma@relianceada.com SMS No- 110387 SID- RB12044 Table of Contents 1. Introduction 2. Purpose of the assignment 3. Gratitude to Professor and support staff 4. Introduction of IFM Assignment topic- Foreign Debt Crisis Management of RCom 5. Company Profile 6. Assignment analysis and study A. Reliance Communications has secured loans from a host of Chinese banks to refinance $1.18 billion B. RCom has filed a prospectus with the Singapore Stock Exchange and plans to divest as much as 75% stake in Flag Telecom to raise about $1 Billion i) Background of Reliance Globalcom (Flag Telecom) ii) Cable network of Flag Telecom iii) Solutions offered by Reliance iv) Strategic Move by Reliance to fight with debt crisis C. Reliance Communications has put on hold the initial public offering of its undersea cable unit Flag Telecom in Singapore D. Impact of heavy debt on company's financial credit worthiness and impact of rupee devaluation on overseas loan E. The impact of the high-debt levels has been further compounded because of the steep depreciation of the rupee 7. Impact of Un-hedged foreign currency debts due to rupee devaluation 8. Conclusion INTRODUCTION As a student of International Finance Management...

Words: 3768 - Pages: 16

Free Essay

Reliance

...INTRODUCTION Reliance Communications Ltd. (commonly called RCOM) is an Indian Internet access (commonly called "broadband") and telecommunications company headquartered in Navi Mumbai, India. RCOM is India's second largest telecom operator, only after Bharti Airtel. It is the 15th largest mobile phone operator with over 150 million subscribers. Established in 2004, it is a subsidiary of Reliance Anil Dhirubhai Ambani Group. MAJOR SUBSIDIARIES Subsidiary Reliance Telecommunication Limited (RTL) operates in Gujarat, Madhya Pradesh, West Bengal, Himachal Pradesh, Odisha, Bihar, Assam, and the northeast of India. It first offered GSM services in January 2003. Reliance Tech Services is the IT services wing of Reliance Anil Dhirubhai Ambani group. It provides IT consultancy, business process outsourcing and software development for Reliance Communications and other ADA group companies. Reliance Global com owns the Fiber-Optic Link around the Globe undersea cable system RIDC provides Internet data center (IDC) services located in Mumbai, Bangalore, Hyderabad and Chennai. MOBILE On 19 May 2010, the 3G spectrum auction in India ended. Reliance Communications paid INR 58642.9 million for spectrum in 13 circles. The circles it will provide 3G in are Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam, North East, and Jammu & Kashmir. RCOM recently has started to offer 3G services through network...

Words: 1301 - Pages: 6

Premium Essay

Relaince

...Two giants of Telecom, one of the fastest growing industries in India, one of the fastest growing economies in the word, are Airtel and Reliance Communication. Airtel declared its yearly results on April 29th followed by Reliance Communication on April 30th. Both the results are very good with Airtel doing better thanRCom probably. • Airtel has a net profit of Rs 7,859 crores vs RCom had a net profit of Rs 6,147 crores for the year 2008-09. • For Q4, Airtel made a net profit of Rs 2,049 crores vs RCom had Rs 1,516 crores. • Overall the verdict in the newspapers has been that Airtel has come out as a big winner! In the statements made by Airtel they have explained their strategy going forward. They are giving importance to rural penetration and high end users. Now this is an interesting strategy by a company like Airtel, which is looking for growth in customer base and generating revenues through the existing userbase as well. By emphasizing rural markets they are paving way for the future, expanding their network throughout the country further and gearing up for the next wave of users. In the last quarter they added 8 million subscribers. In the cities they are dropping the unviable schemes offering free minutes to users, allowing competition to grab these users but instead are focusing on their core stengths, their high end users! They already have a huge userbase and now they are generating the profits from them. A very good strategy indeed! Reliance on the...

Words: 405 - Pages: 2

Premium Essay

Abcelecom Sector and Its Devlopment

...Two giants of Telecom, one of the fastest growing industries in India, one of the fastest growing economies in the word, are Airtel and Reliance Communication. Airtel declared its yearly results on April 29th followed by Reliance Communication on April 30th. Both the results are very good with Airteldoing better than RCom probably. • Airtel has a net profit of Rs 7,859 crores vs RCom had a net profit of Rs 6,147 crores for the year 2008-09. • For Q4, Airtel made a net profit of Rs 2,049 crores vs RCom had Rs 1,516 crores. • Overall the verdict in the newspapers has been that Airtel has come out as a big winner! In the statements made by Airtel they have explained their strategy going forward. They are giving importance to rural penetration and high end users. Now this is an interesting strategy by a company like Airtel, which is looking for growth in customer base and generating revenues through the existing userbase as well. By emphasizing rural markets they are paving way for the future, expanding their network throughout the country further and gearing up for the next wave of users. In the last quarter they added 8 million subscribers. In the cities they are dropping the unviable schemes offering free minutes to users, allowing competition to grab these users but instead are focusing on their core stengths, their high end users! They already have a huge userbase and now they are generating the profits from them. A very good strategy indeed! Reliance on the other hand seems...

Words: 405 - Pages: 2

Free Essay

Vwvw

...WEST BENGAL UNIVERSITY OF TECHNOLOGY [pic] Summer Project Report On ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM At Reliance Communications New Delhi By Itisha Sharma [pic] WBUT REGN. NO. : 111360710034 WBUT ROLL NO. : 13600911034 CONTENTS ➢ Certificate from Guides ➢ Acknowledgement ➢ Executive Summary ➢ Chapter I : The Company 1.1 Company Profile ➢ Chapter II : The Project 2.1 Project Profile 2.2 Purpose & Scope of study 2.3 Limitation 2.4 Methodology ➢ Chapter III : Collection & Analysis of data 3.1 Data collection 3.2 Data Analysis ➢ Chapter IV : Finding & Recommendations 4.1 Findings 4.2 Recommendations 4.3 Conclusion ➢ Reference Matter 5.1 Bibliography GUIDANCE -cum- COMPLETION CERTIFICATE This is to certify that Ms.Itisha Sharma, WBUT Registration Number of 20011-13, WBUT Roll Number had undertaken the project titled “ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM AT RELIANCE COMMUNICATION, New Delhi” under our guidance from 18th June, 2012 to 31st July, 2012 at Reliance Communications, New delhi and has completed the said project successfully. External Guide’s Full Signature [Organisation Seal] Internal Guide’s Full Signature ...

Words: 8049 - Pages: 33

Free Essay

Reliance Comm

...Reliance Communications Limited (commonly called RCOM) is a major Indian telecommunication company headquartered in Navi Mumbai, India. It is the 16th largest operator in the world with more than 128 million subscribers. RCOM, founded by Dhirubhai H Ambani (1932–2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The Reliance Anil Dhirubhai Ambani Group currently has a net worth in excess of [pic]64,000 crore (US$13.6 billion), cash flows of [pic]13,000 crore ($2.8 billion), and a net profit of [pic]8,400 crore ($1.8 billion). The Equity Shares of RCOM are listed on Bombay Stock Exchange Limited and National Stock Exchange Limited. The Global Depository Receipts and Foreign Currency Convertible Bonds are listed on Luxembourg Stock Exchange and Singapore Stock Exchange respectively. | | Background It ranks among the top 5 telecommunications companies. Retrieved 2010-04-14. in the world by number of customers in a single country. Reliance Communications corporate clientele includes 2,100 Indian and multinational corporations, and over 800 global, regional and domestic carriers. The company has established a pan-India, next-generation, integrated (wireless and wireline), convergent (voice, data and video) digital network that is capable of supporting services spanning the entire communications value chain, covering over 24,000 towns and 600,000 villages. Reliance Communications owns and operates the next-generation IP-enabled connectivity infrastructure...

Words: 2176 - Pages: 9

Premium Essay

Airtel- Financial Ratio Analysis

...FINANCIAL ANALYSIS FOR THE TELECOM SECTOR- A REPORT BY GROUP-4, SECTION-C AMAN SAHNI(4C) GAURAV SHARMA(16C) NEHA DEOLIYA(24C) PRATEEK GOEL(28C) SRIVATHSAN S.(43C) 1 INDEX 1. INDUSTRY OVERVIEW 2. COMPANY ANALYSIS 3.COMPETITIOR ANALYSIS 4. CONCLUSIONS 3 6 11 15 2 1. INDUSTRY OVERVIEW Introduction The telecommunication industry has been growing at a tremendous rate in India for the last few years. More than 18 million subscribers are added every month. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future. The telecom industry has been divided into two major segments, that is, fixed and wireless cellular services for this report. Besides, internet services, VAS, PMRTS and VSAT also have been discussed in brief in the report. In today’s information age, the telecommunication industry has a vital role to play. Considered as the backbone of industrial and economic development, the industry has been aiding delivery of voice and data services at rapidly increasing speeds, and thus, has been revolutionising human communication. Although the Indian telecom industry is one of the fastest-growing industries in the world, the current teledensity or telecom penetration is extremely low when compared with global standards. India’s teledensity of 36.98% in FY09 is amongst the lowest in the world. India's...

Words: 4878 - Pages: 20

Premium Essay

Managing Financial Resources “Reliance Capital Case”

...* ------------------------------------------------- Reliance growth fund is an open ended equity growth scheme. The growth fund invests in stocks. * ------------------------------------------------- The fund benchmarks the BSE 100 index. * ------------------------------------------------- The investment objective of the scheme is to achieve long-term growth by investing in equity and securities. * ------------------------------------------------- Annual equity returns after inflation during the 29th century (1925 ~ 2001) Australia 0.98%, UK 5.01%. * ------------------------------------------------- The world average for the period 1949-1999 is 8.53% * ------------------------------------------------- The return & risk in emerging markets (Argentina, Brazil, India) are higher in comparison to Developed Markets (Australia, Canada, Germany etc) ------------------------------------------------- The aimed to restrict our study to analyze:- ------------------------------------------------- Q1. Calculate mean returns and standard deviation for each stock in the Reliance Growth Fund. ------------------------------------------------- Q2. Construct a 2 stock portfolio consisting of Reliance Communication and JSW. Estimate mean returns and standard deviation assuming equal investment. What composition of the two stocks has the least risk? ------------------------------------------------- Q3. Repeat analysis for a portfolio consisting of Reliance Communication...

Words: 1704 - Pages: 7

Premium Essay

Reliance Telecom

...[pic] [pic] [pic] [pic] [pic] [pic] PROJECT REPORT Submitted for Partial fulfillment for The Award of the degree of Master in Business Administration (2008-2010) [pic] J K BUSINESS SCHOOL SOHNA ROAD, GURGAON (HARYANA) SUBMITTED TO: SUBMITTED BY: PROF.KHUSHAL KATARIA HEMANT PAL SINGH FACULTY GUIDE ROLL. NO.-JKBS083193 J K BUSINESS SCHOOL MBA PREFACE All the learning’s in our MBA course is practice oriented. However, hands-on experience in the corporate world during our course is very necessary to be able to test the ability and extent of learning of the student before fully entering the corporate world. The two months training which I underwent at Reliance, Jai Agency, Delhi(West) in was a wonderful learning experience. I was assigned with the project “SWOT analysis of reliance communication with competitor” With the guidance and suggestions provided by Mr. BHUPENDRA SINGH, my Industry Guide, I started first phase of my Project by doing a market analysis, After that I started with the second phase which involved research work pertaining to the customer analysis. In this report I have explained...

Words: 15428 - Pages: 62

Free Essay

Rupee Slide

...MUMBAI: For India Inc, the rupee's slide comes as another blow at a time revenue growth is slowing and margins are being squeezed. The currency has lost 11% since May. This will adversely impact capital-intensive sectors and firms with foreign borrowings and those who import raw materials heavily. Automobiles, capital goods, petroleum, power and telecom companies will bear the brunt of a weak rupee. But, sectors such as software services and pharma, with major export revenues, will benefit, though the extent of gains at the net profit level will hinge greatly on their foreign exchange hedging policies. Ads by Google • New Launch Villa Project3.5 & 5.5 BHK Luxury Villas in Pune Your island of Peace 2.5cr onwards Gera.in/Isle_Royale_Villas_Bavdhan • HDFC Life™ Term PlanPremium Starts@Just रु 2000/yr. No Medicals upto 75L Cover* Buy Now www.buyhdfcslonline.com The ET Intelligence Group analysed the impact of a weak currency on select sectors. Pharma: Most companies in the sector will gain from the rupee's fall, since a substantial proportion of their revenues comes from exports. A strong US dollar and yen will boost net sales and operating margins. Gainers: The major gainers will be Dr Reddy's Lab, Sun Pharma, Lupin, Glenmark, Wockhardt and Cadilla Healthcare as they derive significant earnings from overseas markets. Analysts reckon that with every Rs 1 movement, the earning per share of these companies will change by 1-2%. For Cipla, which focuses mostly on the domestic...

Words: 920 - Pages: 4

Free Essay

Top Players in Indian Telecom Sector

...TOP PLAYERS IN THE TELECOM INDUSTRY There’s definite excitement in the telecom industry with a few ruling the industry. Globally China Mobile is regarded as one of the biggest players in the telecom industry with a market value of over $213.8 billion. It is also the only telecom operator to have provided operations at Mount Everest. Not so far behind is America’s very own At&t which has a market value of over $200.1 billion dollars. Besides At&t, other telecom sectors fighting for ranks include Verizon established in 1983, Vodafone, also considered as among the top 3 companies listed in the London Stock Exchange, America Movil (based in Mexico), Telefonica, Telstra, NTT group, Deutshe Telekom and finally Softbank which is a Japanese Network. In India, the telecom sector operates a little differently. None of the Indian operators make it to the list of the top 10 telecom companies even in market share, despite operating in the second most populous country in the world. However, Vodafone that operates in India makes it to the list at number four. The following are the Key players in the telecom sector in India: AIRTEL | VODAFONE | RELIANCE COMMUNICATIONS | IDEA CELLULAR | TATA TELESERVICES | AIRCEL | UNINOR | MTS | MTNL | LOOP MOBILEFormerly BPL | Airtel Bharti Airtel or simply Airtel is India’s largest telecom company, headquartered in New Delhi, India. In the year 1986, Sunil Mittal incorportated Bharthi Telecom Limited and his...

Words: 1089 - Pages: 5

Premium Essay

My MBA Experience

...PROJECT REPORT Submitted for Partial fulfillment for The Award of the degree of Master in Business Administration (2008-2010) J K BUSINESS SCHOOL SOHNA ROAD, GURGAON (HARYANA) SUBMITTED TO: SUBMITTED BY: PROF.KHUSHAL KATARIA HEMANT PAL SINGH FACULTY GUIDE ROLL. NO.-JKBS083193 J K BUSINESS SCHOOL MBA PREFACE All the learning’s in our MBA course is practice oriented. However, hands-on experience in the corporate world during our course is very necessary to be able to test the ability and extent of learning of the student before fully entering the corporate world. The two months training which I underwent at Reliance, Jai Agency, Delhi(West) in was a wonderful learning experience. I was assigned with the project “SWOT analysis of reliance communication with competitor” With the guidance and suggestions provided by Mr. BHUPENDRA SINGH, my Industry Guide, I started first phase of my Project by doing a market analysis, After that I started with the second phase which involved research work pertaining to the customer analysis. In this report I have explained what I undertook based on research and my personal experience. I have also tried to understand business relations with the market developers, business strategies, and ethics and work compliance in an industry as an additional part of my study. HEMANT PAL SINGH JKBS083193 MBA II SEM ACKNOWLEDGEMENT It is my proud privilege to express a deep sense of gratitude and regard to My guide Prof. KHUSHAL KATARIA...

Words: 13122 - Pages: 53

Free Essay

Reliance Telecom

...A Brief Study On “TELECOM SERVICES OF RELIANCE COMMUNICATION’’ PROJECT REPORT Submitted for Partial fulfillment for The Award of the Degree of Master of Business Administration (2007-2009) INTERNATIONAL SCHOOL OF BUSINESS & RESEARCH # 62B, ELECTRONIC CITY, PHASE-1, OPP. POLICE STATION, BANGALORE, PIN-560100 Submitted by: GAURAV GUPTA Enroll. No. – 5310700343 Reg. No. - 531M8075F00198 MBA (FINANCE & RETAIL) Session: - 2007-2009 CERTIFICATE This is to certify that Mr. Gaurav Gupta bearing university Regd. No...

Words: 6271 - Pages: 26