Enterprise Wireline Tariffs to Come Down – Reliance Communication

February 2, 2010 · Author: · Category: conference call 

In an analyst call, the management of Reliance Communications have said that Wireline / Landline Tariffs are under pressure as Wireless Tariffs have fallen significantly and the company si facing pressure especially from the Enterprise Segment.

Other highlights of the call are – Although RCOM’s RPM declined 4.6% in Q310, its EBITDA margin was down 156 bp; management mentioned this was due to continued investments in network and higher Interconnect payments. Interconnect expenses increased due to higher off-net calls after subs started migrating to Simply Reliance package.

RCOM stated that the deliveries to Etisalat recently commenced
and estimates revenue contribution should start in 4QFY10. Management estimates FY11 ex 3G capex to be Rs 30 bn.

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