Telecom service provider Reliance Communications said its Capex (capital spending) dropped 27 percent, revenue increased 1 percent, while profit nosedived 77 percent in Q2 fiscal 2015.
Reliance Communications Capex dipped 27.2 percent to Rs 302 crore in Q2 fiscal 2015 from Rs 415 crore in the prior quarter.
For comparison, Vodafone invested Rs 3,509 crore towards Capex in H1 fiscal 2015. Vodafone Capex increased 116.3 percent compared with H1 fiscal 2014.
Billionaire Anil Ambani promoted Reliance Communications’ data network has undergone upgrade to include many more metro cities to offer high speed data services to customers with speeds up to 14.7 Mbps.
The company says the Capex investment will assist the company to launch Wi-Fi dongles and standalone Wi-Fi routers to offer better data experience up to 20 connected devices simultaneously. Reliance Comm will enhance availability of data services in more telecom circles through roaming arrangements.
The number of 3G subscribers at Reliance Communications increased 16 percent to 15.1 million in Q2 fiscal 2015 from 13 million in the prior quarter.
For comparison, Vodafone has 13.6 million 3G subscribers in India.
Reliance Communications on Friday said its Q2 fiscal 2015 revenue increased 1.4 percent to Rs 5,287 crore, while net profit plummeted 77 percent to Rs 153 crore on yearly basis. For comparison, Idea Cellular, one of its rivals, posted 59 percent rise in quarterly profit.
India revenue of Reliance Communications was Rs 4,680, while global business generated Rs 1,007 crore. On quarterly basis, India business of Reliance Communications dipped 0.8 percent, while the global business declined 6.2 percent.
— Reliance Mobile (@RelianceMobile) November 14, 2014
Reliance Communications said its RPM rose 1.4 percent to 44.4 paisa, while voice RPM grew 0.9 percent to 33.6 paisa. Vodafone voice RPM was stable at 37.3 paisa.
MOU of Reliance Communications decreased 1 percent to 102.1 billion.
ARPU of Reliance Communications rose 0.7 percent to Rs 137 in Q2. On the other hand, ARPU of Vodafone India was Rs 200.
Data traffic of Reliance Communications increased 19 percent on quarterly basis and 75 percent on yearly basis to 65.77 billion MB.
The data customer base of Reliance Communications has grown 3.8 percent to 29.7 million.
In September, rival Idea Cellular, a telecom operator promoted by Aditya Birla group, added 1.7 million subscribers, while Reliance added about half a million.