The great Indian Telecom M&A is finally unfolding. Before we go into the Indian Telecom M&A, I’d like to elaborate about a great Chairman Hindustan Unilever [then Hindustan Lever Ltd] had in the 1990s – S M Datta. That was precisely the time when my tryst with Equity Markets had began even though I was still in High School. I was an avid reader of Business Today & Business India and was deeply influenced by HLL Chiarman Mr. Datta. During his tenure he masterminded the M&A for all the companies Lever Brothers wanted to takeover in India using HLL. Mr. Datta got Brooke Bond India & Lipton India merged separately and finally HLL tookover the combined entity, totally 6 during his tenure and also laid down the future roadmap for Levers in India. Drawing parallel, I’m wondering if Mukesh Ambani wants to do the same in Telecommunications ? Let Reliance Communications takeover MTS Sistema. Meanwhile RJio will takeover Videocon Telecom at some point as I have already elaborated about their spectrum synergy. Later RJio takes over RCom and all the companies will hive off their Telecom Infrastructure assets creating a giant Telecom Services & Infrastructure company. I can’t be sure of RCom & RJio merger in future but corporate moves by Anil Ambani point in that direction – Anil gets into Finance, Power, Defence & Infrastructure exiting Telecom where he hasn’t been able to carve a niche for himself despite driving the business for a decade. Mukesh & Akash Ambani’s Big Plans for Reliance Jio Infocomm are extensively covered here. Continue reading MTS Sistema Merger with Reliance Communications – Mukesh Ambani Master Stroke or 4G LTE Play ?
Deep Pocket Challenger in the Indian Telecommunications industry Mr Mukesh Ambani led Reliance Jio Infocomm is attempting to do what has not been seen before in any market and seems impossible – be a 4G LTE player without owning a legacy 2G / 3G network.
Admittedly, this is a critical aspect. We believe Jio is counting on VoLTE (voice over LTE) to get its voice product right (despite lack of legacy), but this is still an evolving technology. Though some operators (such as Verizon, SingTel, NTT DoCoMo) have launched commercial VoLTE services over the last few months, it might be too early to declare its success. Reliance Jio has the option available to it of signing 2G roaming agreements with an incumbent operator such as RCom for voice services and it appears to have done so, but the deal is not publicly announced. Continue reading Reliance Jio Infocomm & Reliance Communications into PAN India Roaming Agreement ?
- Reliance Communications at the end of DEC 2012 had 27.6 Mn Data Subscribers which include 2G, 3G and CDMA based EVDO Dongle Customers as well.
- RCom reported 6.1 Mn 3G Broadband Subscribers at the end of Dec 2012. Despite higher Data Usage, Revenue witnessed pressure but the Management is confident of Data Off-take and asked us to look at the brighter side.
- Total Data Usage Per Customer is 280 MB in the DEC-2012 Qrtr.
- Data Services contributed 20.9% of overall wireless revenues. [Read total Non-Voice, that is how the company discloses to shield the revenues that it gets from CDMA EVDO Services to avoid potential legal battles]
- Data will be 40% of Total Wireless Revenues in Continue reading Reliance Communications has 27 Mn Data Subscribers + ARPU up 17% QoQ + Infratel in Talks with RIL Infotel +
In the August of 2008, I then made the case, for Reliance Communications it made more sense to switch Voice / 2G Customers to GSM Network when it acquired 1800MHz Spectrum. However, the Anil Ambani managed company after 4 years has realized this and in its new strategy, CEO of Wireless Business, Mr Gurdeep Singh Revealed to GS Analysts that Continue reading Reliance Communications to Switch CDMA Voice Customers to GSM Network – CDMA Only for Data