Reliance Communications

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Reliance Communications
Traded as NSERCOM
BSE532712
Industry Telecommunications
Founded 2002[1]
Founder Anil Ambani
Headquarters DAKC, Kopar Khairane, Navi Mumbai, Maharashtra, India[2]
Area served
India
Key people
Anil Ambani (President)
Revenue 220 billion (US$3.3 billion) (2015)[3]
7.14 billion (US$110 million) (2015)[3]
Total assets 703 billion (US$10 billion) (2015)[3]
Owners Reliance ADAG(90%)
SSTL (10%)
Members 98.70 million[4] (june 2016)
Number of employees
8,500 (2015)[3]
Subsidiaries Global Cloud Xchange
Reliance Digital TV Limited
Reliance Telecom Limited
Reliance Infratel Limited
Reliance Global Call
Website www.rcom.co.in

Reliance Communications Ltd. (RCom) is an Indian Internet access and telecommunications company headquartered in Navi Mumbai, India. It provides GSM (Voice, 2G, 3G, 4G) mobile services, fixed line broadband and voice services, DTH depending upon the areas of operation. Reliance Communications is the fourth largest telecom operator in India with 98.70 million subscribers as of June 2016.[4]

Established in 2002, it is a subsidiary of Reliance Anil Dhirubhai Ambani Group. Reliance Communication IT Support is provided by Reliance Tech Services and Telecom network is maintained and operated by Ericsson, transmission towers are maintained by its subsidiary Reliance Infratel. Reliance Infocomm laid the largest Optic Fiber Cable network in the country in 2003 to 2005, approximately 135,000 km, and touched almost all top broadband cities with the help of their Franchisee's - Local Cable Operators (LCO's). On an average 1900 large LCO's were connected to the Reliance Infocomm network to provide Voice, Data and Video services known as Triple Play on IPTV platform. After the split of the Telecom business venture between Mukesh Ambani and Anil Ambani, the telecom business was handed over to Anil Ambani, who later christened the company as "Reliance Communications Limited".

In September 2016, RCom announced that it would merge its wireless business with Aircel.

History[edit]

Reliance Communications Ltd. was established in 2002. The same year, it launched CDMA services nationwide. In 2008, Reliance Communications launched GSM services. In the 2010 spectrum auction, Reliance Communications paid 58,642.9 million for 3G spectrum in 13 circles Delhi, Mumbai, Kolkata, Punjab, Rajasthan, Madhya Pradesh, West Bengal, Himachal Pradesh, Bihar, Odisha, Assam, North East and Jammu & Kashmir.[5]

On 25 May 2012, RCom announced a price reduction of 51% on its 3G services.[6] In 2011, Reliance provided up to 28 Mbit/s data rate in India with its MIMO technology.[7] On 31 January 2013, RCom announced its partnership with Lenovo to market co-branded smartphones in India.[8] The smartphones were said to use the Android operating system and have dual-core processors.[8] In 2015, it launched CDMA in REV. B technology in non 3G circles.

In April 2016, RCom informed its CDMA subscribers that it would be shutting down its CDMA operations, and that all CDMA subscribers would be migrated to GSM and LTE networks.[9] The company announced that the migration had been completed in September 2016.[10]

Acquisition of MTS India[edit]

On 14 January 2016, RCom announced that it had acquired Sistema Shyam TeleServices Limited (SSTL), doing business as MTS India, in an all stock deal, in which SSTL received a 10% stake in RCom, after paying off its existing debt. RCom would assume the liability for installments that SSTL had to pay the government from purchasing spectrum. The liability amounted 392 crore annually for 10 years. As a result of the deal, Reliance acquired MTS India's subscribers, as well as SSTL's spectrum in the 850 MHz band.[11]

The merger deal was approved by the Competition Commission of India (CCI) in February 2016.[12] SEBI cleared the deal by March, and SSTL shareholders approved the deal on 18 March.[13] By mid-August, the deal was approved by tax authorities and the shareholders and creditors of RCom and SSTL.[14] The merger was approved by the Rajasthan High Court on 30 September 2016,[15] and the Bombay High Court on 7 October 2016.[16] The final approval, from the Department of Telecommunications, is expected by the end of 2016.

Merger of wireless business with Aircel[edit]

On 14 September 2016, RCom and Maxis Communications (owners of Aircel) announced that they would merge their mobile network operations. The deal is the largest consolidation in Indian telecom history, and will create the third largest mobile network operator in the country by subscribers and by revenue.RCom and Maxis will each hold 50% stake in the merged entity, with equal representation on the board of directors and all committees. RCom will continue to operate in the enterprise segment and data centre businesses as a standalone entity.[17][18]

Network coverage[edit]

Reliance Communications operates in all 22 telecom circles of India, and offers services on GSM and CDMA platforms. Mobile services are available in the following telecom circles:

Telecom circle 2G 3G 4G
Andhra Pradesh & Telangana Yes No Yes(under 4G partner with Reliance Jio)
Assam No Yes Yes(under 4G partner with Reliance Jio)
Bihar & Jharkhand No Yes Yes(under 4G partner with Reliance Jio)
Delhi Yes Yes Yes(under 4G partner with Reliance Jio)
Gujarat Yes No Yes(under 4G partner with Reliance Jio)
Haryana Yes No Yes(under 4G partner with Reliance Jio)
Himachal Pradesh Yes Yes Yes(under 4G partner with Reliance Jio)
Jammu and Kashmir Yes Yes Yes(under 4G partner with Reliance Jio)
Karnataka Yes No Yes(under 4G partner with Reliance Jio)
Kerala Yes No Yes(under 4G partner with Reliance Jio)
Kolkata Yes Yes Yes(under 4G partner with Reliance Jio)
Madhya Pradesh & Chhattisgarh Yes Yes Yes(under 4G partner with Reliance Jio)
Maharashtra & Goa Yes No Yes(under 4G partner with Reliance Jio)
Mumbai Yes Yes Yes(under 4G partner with Reliance Jio)
North-East Yes Yes Yes(under 4G partner with Reliance Jio)
Odisha Yes Yes Yes(under 4G partner with Reliance Jio)
Punjab Yes Yes Yes(under 4G partner with Reliance Jio)
Rajasthan Yes Yes Yes(under 4G partner with Reliance Jio)
Tamil Nadu Yes Yes(under 3G ICR with Aircel) Yes(under 4G partner with Reliance Jio)
West Bengal No Yes Yes(under 4G partner with Reliance Jio)
Uttar Pradesh (East) Yes Yes(under 3G ICR with Aircel) Yes(under 4G partner with Reliance Jio)
Uttar Pradesh (West) Yes Yes(under 3G ICR with Tata Docomo) Yes(under 4G partner with Reliance Jio)

Ultraband[edit]

RCom launched its Ultraband service offering internet speeds of up to 1 Gbps in select locations in Mumbai and Navi Mumbai in April 2016.[19]

Subsidiaries[edit]

Reliance Telecom Limited (RTL) operates in Madhya Pradesh, West Bengal, Himachal Pradesh, Odisha, Bihar, Assam and the northeast of India. It first offered GSM services in January 2003.[20] Reliance Tech Services is the IT services wing of Reliance ADAG. It provides IT consultancy, business process outsourcing and software development for Reliance Communications and other ADA group companies. Reliance Globalcom owns the Fiber-Optic Link Around the Globe undersea cable system and RIDC provides Internet data centre (IDC) services located in Mumbai, Bangalore, Hyderabad and Chennai. Reliance Communications also acquired FLAG Telecom, Yipes ethernet service, Digicable and Vanco.

Reliance Digital TV Ltd[edit]

Main article: Reliance Digital TV

Reliance Digital TV Ltd is a direct to home (DTH) television operator offering services under the brand name Reliance Digital TV.

Reliance Infratel Ltd.[edit]

Reliance Infratel Ltd. (RITL) handles RCom's mobile towers asset and related infrastructure. RCom owns a 96% stake in the company and the rest is held by several minority investors - Quantum (M), NSR Partners, Galleon, HSBC Daisy Investment (Mauritius), Drawbridge Towers, Investment Partners B (Mauritius). Investment Partners B had invested $287 million in 2007.[21]

On 14 October 2016, RCom announced that it had signed a non-binding term sheet with Brookfield Infrastructure Group to sell a 51% stake in Reliance Infratel for 11,000 crore (US$1.6 billion). RCom will utilize the entire amount earned from the deal to reduce its existing debt. Following the deal, Brookefield will hold a 51% state in Reliance Infratel, RCom will retain a 49% stake and the minority partners will exit.[22][23]

Global Cloud Xchange[edit]

Main article: Global Cloud Xchange

Global Cloud Xchange (GCX) offers a comprehensive portfolio of solutions customized for carriers, enterprises and new media companies across the world’s largest private undersea cable system spanning more than 67,000 route kilometres (“rkm”), integrated with Reliance Communications’ 200,000 rkm of domestic fiber-optic backbone.

Reliance Global Call[edit]

Reliance Global Call offers international calling card service in India, US, Canada, Australia, UK, Singapore, Hong Kong, New Zealand, Singapore, France, Belgium, Austria, Spain, Ireland and Netherlands.

References[edit]

  1. ^ "About us, Reliance Communications". Retrieved 30 June 2015. 
  2. ^ http://www.rcom.co.in/Rcom/personal/customercare/customercare_sac.html
  3. ^ a b c d "Reliance Communications Financial Annual Results For 2012 - 2013" (PDF). Rcom.co.in. Retrieved 16 January 2012. 
  4. ^ a b "Telecom Subscription data, June 2016" (PDF). TRAI. Retrieved 30 June 2016. 
  5. ^ "RCom launches 3G services in 3 cities". The Hindu. Chennai, India. 14 December 2010. 
  6. ^ "RCom slashes 3G tariff by 61%". The Times of India. 25 May 2012. Retrieved 25 May 2012. 
  7. ^ "Reliance Improved their 3g with MIMO Technology". Teletechnology of India. 22 August 2011. Retrieved 5 October 2013. 
  8. ^ a b "Reliance, in a deal with Lenovo to offer co-branded Jelly Bean smartphones to consumers". TechIt.in. 1 February 2013. 
  9. ^ "RCom kicks off migration process; to upgrade CDMA subscribers to 4G LTE network". 2016-04-02. Retrieved 2016-09-14. 
  10. ^ "Reliance Communications Posts Nearly 6% Rise In Q1 Profit - NDTV". Retrieved 2016-09-14. 
  11. ^ "Reliance Communications acquires Sistema's MTS India in all-stock deal". www.businesstoday.in. Retrieved 2016-09-06. 
  12. ^ "Reliance Communications Gets CCI Approval to Acquire MTS". Retrieved 2016-09-06. 
  13. ^ "Sistema Shyam shareholders approve merger with Reliance Communications". Retrieved 2016-09-06. 
  14. ^ "DoT's approval for SSTL-RCOM merger likely in Q4: Sistema - The Economic Times". Retrieved 2016-09-06. 
  15. ^ India, Press Trust of (30 September 2016). "RCom gets Rajasthan HC approval for Sistema acquisition". Business Standard. Retrieved 1 October 2016. 
  16. ^ "Reliance Communication gets Bombay HC approval for Sistema acquisition - The Economic Times". The Economic Times. Retrieved 2016-10-08. 
  17. ^ "RCom, Aircel announce merger; create fourth largest telco in India - Times of India". Retrieved 2016-09-14. 
  18. ^ Pandey, Piyush (2016-09-14). "RCom-Aircel merger a strong challenger to Idea Cellular". The Hindu. ISSN 0971-751X. Retrieved 2016-09-14. 
  19. ^ http://telecomtalk.info/rcom-launches-ultraband-with-1-gigabit-per-sec-speed-in-mumbai/152477/
  20. ^ "Telecom Investment: At its Peak". Telecom & Networking Communications Today. 3 December 2009. Archived from the original on 28 January 2010. Retrieved 6 October 2013. 
  21. ^ "Brookfield set to buy majority stake in Reliance Communication towers; Anil Ambani to stay on as minority partner - The Economic Times". The Economic Times. Retrieved 14 October 2016. 
  22. ^ Pandey, Piyush (14 October 2016). "RCom to sell 51 p.c. in tower assets to Brookfield for Rs 11,000 crore". The Hindu. Retrieved 14 October 2016. 
  23. ^ "RCOM plans to sell tower assets to Brookfield for Rs 11,000 crore". The Indian Express. 14 October 2016. Retrieved 14 October 2016. 

External links[edit]