Reliance Communication transforms itself into pure B2B player

Reliance Communication outlined its view in a media release as under -

1. RCOM has exited its wireless B2C business on 31 January 2018.

2. As is evident from the latest sector revenue report released by the TRAI, the wireless sector continues to be on a downward spiral, with >21% revenue decline on YoY basis. Overall revenue market size shrunk by over Rs.26,000 crore on annualized basis.

3. The tariff wars between the incumbents- Airtel , Vodafone, Idea and the new entrant Reliance JIO continue unabated, further dragging down all key financial metrics of the wireless sector.

4. However, post its wireless B2C business exit in Jan-18, RCOM is no longer affected by the severe and prolonged wireless sector hyper competition.

 

5. RCOM has transformed itself into a pure B2B player and is completely focused on -
- the stable enterprise communications services and the rapidly growing data center space in India with over 35,000 B2B customers in India.
- Its global submarine cable business in enterprise data across continents, with over 300 enterprise and carrier customers worldwide.
- RCOM now serves only ~ 35,300 customers worldwide; earlier, the total no. of customers served was over 120 Mn inclusive of B2C.

RCOM operational business fully insulated from the hyper competition, mega capex requirements, financial stress of the wireless sector.

Total No of people in the RCOM group: from peak of ~ 52,000 to current 3,400, a reduction of ~ 94%.

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