Telecom liquidating

telecom liquidating-12
CLSA also states that RCom's revenue market share has slipped to just 3 per cent from 14 per cent at its peak.Rishi Tejpal, Principal Research Analyst at Gartner says that five players are ideal for this market. Their survival in this dynamic market is uncertain.The telco claims that it continues to be under SDR (strategic debt restructuring) standstill period till December 2018, a major reprieve it received in June this year after lenders raised a red-flag over its debt repayment abilities.

CLSA also states that RCom's revenue market share has slipped to just 3 per cent from 14 per cent at its peak.

The fewer subscribers and lower ARPU has led to a fall in its financial performance.

RCom posted net losses of Rs1,210 crore in the first quarter of 2017/18, a sharp fall from a net profit of Rs54 crore in the corresponding period last year.

The merger of the wireless business with Sistema Shyam Teleservices (operating under the brand MTS India) is expected to be completed this month after a 24-month delay but is unlikely to change RCom's destiny.

RCom's problems are many: falling subscriber numbers, high debt, deteriorating top line and bottom line, and inability to attract investors for its assets.

I expect further consolidation in the sector," he says.

E-mail queries sent to RCom seeking comments on its course of action went unanswered. If RCom is able to restructure debt, it should be able to come out of the mess," says a leader of telecom practice at a global consultancy firm.

Reliance Jio, which started operations in September 2016, has 128 million subscribers as of August.

Also, the average revenue per user (ARPU) of RCom stood at Rs141 against Airtel's Rs158 in March 2017.

RCom's revival hopes were predicated on its three-way merger deal with Aircel and MTS.

That would have given the entity muscle power in spectrum holding, market share, subscriber base, and network coverage.

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