Reliance Communications Company Analysis

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This is a documentation is about company analysis of Reliance communication.

Reliance Communications Ltd (RCOM) RCOM is an Indian broadband and telecommunications company headquartered in Navi Mumbai, India. RCOM is the world's16th largest mobile phone operator with over 150 million subscribers and India's 2nd largest telecom operator in India, only after Bharti Airtel. Established on 2004, a subsidiary of the Reliance Group. The company has five segments: Wireless segment includes wireless operations of the company; broadband segment includes broadband operations of the company; Global segment include national long distance and international long distance operations of the company and the wholesale operations of its subsidiaries; Investment segment includes investment activities of the Group companies, and Other segment consists of the customer care activities and direct-to-home (DTH) activities. Reliance Communications is notorious for its actions against freedom of speech getting sites like vimeo blocked by its sister concern "Reliance Entertainment"

Background It ranks among the top 5 telecommunications companies 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, comprising over 190,000 kilometers of fiber optic cable systems in India, USA, Europe, Middle East and the Asia Pacific region.

HISTORY

It was formerly Reliance Infocomm, along with Reliance Telecom and Flag Telecom, is part of Reliance Communications Ventures (RCoVL). According to National Stock Exchange data, Anil Ambani controls 66.75 per cent of the company, which accounts for more than 1.36 billion shares Looking back, looking forward Reliance Group, an offshoot of the Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited). Reliance Group’s flagship company, Reliance Communications, is India's largest private sector information and communications company, with over 150 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain. Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged as the market leaders in their respective areas of operation.

Main Subsidiaries

Reliance Telecommunication Limited (RTL) In July 2007, the company announced it was buying US-based managed Ethernet and application delivery services company Yipes Enterprise Services for a cash amount of 1200 crore (the equivalent of US$300 million). The deal was announced of the overseas acquisition, the Reliance group has amalgamated the United States-based Flag Telecom for $210 million (roughly 950 crore). RTL operates in Madhya Pradesh, West Bengal, Himachal Pradesh, Orissa, Bihar, Assam, Kolkata and Northeast, offering GSM services. Reliance Tech Services Reliance Tech Services is the IT 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. It provides services to industry sectors such as telecommunications, financial services, utilities, entertainment, infrastructure, BPO operations and health care. Reliance Globalcom RGL owns the worlds largest private undersea cable system, spanning 65,000 km seamlessly integrated with Reliance Communications. Over 110,000 km of domestic optic fiber provides a robust Global Service Delivery Platform, connecting 40 key business markets in India, the Middle East, Asia, Europe, and the U.S. Reliance Internet Data Center (RIDC) RIDC provides Internet Data Center (IDC) services located in Mumbai, Bangalore, Hyderabad and Chennai. Spread across 650,000 sq ft (60,000 m2) of hosting space, it offers IT infrastructure management services to large, medium and small enterprises. It is one of the leading data center service provider in India and provides services like colocation, managed server hosting, virtual private server and data security. It has launched cloud computing services, offering product under its infrastructure as a server (Iaas) and software as a service (Saas) portfolio, which enables enterprises, mainly small and medium, a costeffective IT infrastructure and application on pay-per-user model.

Reliance Digital TV Big TV Reliance Big TV launched in August 2008 and thereafter acquired 1 million subscribers within 90 days of launch, the fastest ramp-up ever achieved by any DTH operator in the world. Reliance Big TV offers its 1.7 million customers DVD-quality pictures on over 200 channels using MPEG-4 technology. Acquisition
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FLAG Telecom Yipes ethernet service Digicable Vanco

Offices Reliance Communications Limited has its offices in Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Jaipur, Kochi, Kolkata, Lucknow, Patna and Pune.

3G and 4G On 19 May 2010, the 3G spectrum auction in India ended. Reliance Communications paid 5864.29 crores 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, Orissa, Assam, North East, Jammu & Kashmir.[9] On 11 June 2010, the broadband wireless access (BWA) or 4G spectrum auction in India ended. Infotel Broadband, a subsidiary of Reliance Industries, won pan-India licence in the auction across 22 circles, the only telecom operator other than state-owned BSNL/MTNL to do so. Infotel paid the government 12847.77 crore for the license. According to Cellular Operators Association of India (COAI) director general Rajan S. Mathews, Reliance Industries is expected to launch 4G services in December 2011. They are expected to use LTE technology. On 25th May 2012, RCom announced a price reduction of 61% on its 3G services.[13]

Technology Currently Reliance is only operator who provides up to 28 Mbit/s speed in India with its 3G MIMO technology. Now GPRS (General Packet Radio Service) is available on your Reliance Mobile Smart GSM Connection. Enjoy any WAP (Wireless Application Protocol) site on your handset. Connect you Laptop / PC with your mobile and enjoy internet surfing. Know about GPRS ? The General Packet Radio Service (GPRS) is a new non voice value added service that allows information to be sent and received across a mobile telephone network. You can enjoy the convenience of accessing Internet wherever you are as voice and data sessions can be conducted simultaneously with the ability to stay on-line all the time (provided customers do not disconnect the dial-up). Moreover, customers will only pay for the amount of data sent or received. ? Internet access/ web browsing, email using internet, sending / receiving moving images are some of great features of GPRS.

GPRS Based offered in RTL 1. WAP (wireless application protocol) 2. NET/IOM (Internet on PC/Laptop via Mobile)

Tariff Structure Postpaid Plan Monthly rental 199 Rs Services Offered WAP / NET Surfing Charges 5 Paisa/10 Kb Content Downloading Pricing available on Rworld. Prepaid Plan Monthly rental E-recharge Rs 303/Services Offered WAP / NET Surfing Charges Unlimited Content Downloading Pricing available on Rworld. For Handset Settings SMS “ALL” to 55100 for Settings through SMS. Charges Rs. 5/- Per SMS applicable.

Manual Handset Settings Settings for SMARTWAP
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Account name : SMARTWAP Access point name: SMARTWAP Home page: http://wap.rworld.co.in/gsm/index.wml Wapgateway proxy IP address: 97.253.29.199 Port: 8080

Settings for SMATRNET
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Account name: SMARTNET Access point name: SMARTNET Home page: http://www.google.co.in Wapgateway proxy IP address: 97.253.29.199 Port: 8080

Settings for MMS
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Account name: RTLMMS Access point name:MMS Homepage: http://10.114.0.5/mms/ Wapgateway IP: 10.114.0.13 Port: 9401

Competitors Reliance Communications competes with 14 other mobile operators throughout India. They are Aircel, Airtel, BSNL, Idea, Loop Mobile,MTNL, MTS, Ping Mobile, S Tel, bsnl, Tata DoCoMo, Tata Indicom, Uninor, Videocon, Virgin Mobile (GSM & CDMA) and Vodafone.

2G Spectrum Scam Arrests and Chargesheets On February 2, 2011, the CBI arrested former Telecommunications Union Minister A.Raja. The CBI also arrested R.K. Chandolia, Raja's personal aide, and Siddharth Behura, the former Telecom Secretary. Both A.Raja and R.K Chandolia are heard in conversation with Niira Radia in the released Radia tapes. On February 8, 2011, the CBI arrested Mumbai based Dynamix Balwas (DB) group managing director Shahid Usman Balwa in connection with the 2G spectrum allocation scam. The CBI has evidence from the Income Tax department that Shahid Usman Balwa, considered close to A.

Raja, was instrumental in channelling the kickbacks allegedly received by the former telecom minister. On March 29, 2011, in Delhi, the CBI arrested Asif Balwa (younger brother of the arrested former Managing Director of DB-Etisalat Group, Shahid Balwa) and Rajeev Agarwal for their alleged involvement in money transfer to the Dravida Munnetra Kazhagam's (DMK)Kalaignar TV channel. On April 2, 2011, the CBI filed its first 80,000 page chargesheet in the 2G spectrum scam before a Special Court in Delhi naming nine individuals and three companies. It said the wrongful acts of the accused deprived the government exchequer of possible revenues amounting to INR Rs 30,985 crore (USD $ 6,983,322,233). The accused include the following individuals

RELIANCE WEBSITE

RELIANCE COMMUNICATION PROVIDES SERVICE SUCH AS ? ? ? ? ? ? ? ? ? ? ? 3G PREPAID MOBILE POSTPAID MOBILE TABS HANDSETS BLACKBERRY RWORLD INTERNET HOME PHONE GLOBAL CALLING TV

RECENT RIL COMMUNICATION NEWS ? RCom puts on hold $1.5bn IPO of undersea unit Flag Telecom Today put on hold the USD 1-1.5 billion initial public offering of its underseas cable unit Flag Telecom in Singapore, in the wake of adverse market conditions. The IPO was put on hold on a day when institutional book building was to close, sources said. RCom was looking at listing Flag Telecom through a Singapore business trust, Global Telecommunications Infrastructure Trust (GTIT) on the Singapore stock exchange. ? Reliance launches 3G tablet Telecommunications service provider Reliance Communications has announced the launch of the Reliance 3G Tab, a 3G-enabled tablet on the Android platform. Reliance is the first telecom operator in the country to offer tablets on both 3G and CDMA networks.

SWOT ANALYSIS OF RELIANCE COMMUNICATION RELIANCE COMMUNICATION LIMITED

Strength • Low Entry Cost • Commission Structure • Fast Activation Process • Network • Connectivity • Data GPRS

Weakness • Branding Image • Distribution problem • Limited product portfolio- Only Mobile • Lack of Competitive Strength • Limited Budget

Opportunity • Preference of GSM over CDMA • New Specialist Application • Rural Telephony • New Market, Vertical, Horizontal • Competitors` Vulnerabilities

Threat • Political destabilization. • New Entrants • IT Development • Market Demand • Seasonality, Weather Effects

REFERENCE WEBSITE: - WWW.RCOM.CO.IN LINK: - http://www.rcom.co.in/Rcom/personal/internet/MyBestPlan.html



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