Reliance Communications targets 40% of revenue from non-voice business in 2-3 years

By Telecom Lead Team: Mobile service provider Reliance
Communications is planning to double the contribution of non-voice revenues to
40 percent in the next 2-3 years from the present more than 20 percent.

The company offers 3G in 333 towns in 13 circles including
Delhi, Mumbai and Kolkata. It has also expanded its HSD network and has HSD
coverage in almost 1,000 towns up from 65 towns almost one year back.

The company’s Wire-free India concept by offering seamless
wireless broadband experience in over 1,300 towns across the country will
assist in achieving significant growth in non-voice revenues. Reliance
Communications wireless revenue stood at Rs 4,447 crore in Q3 2011-12, while
RPM stood steady at a solid 44.6 paisa per minute.

Reliance Communications has invested Rs 355 crore during Q3
towards capital expenditure.

Recently, Reliance Communications tied-up refinancing for
redemption of outstanding FCCBs of $1.18 billion, which is due on March 01,
2012 at an interest cost of about 5 percent.

Reliance Communications is focusing on building a healthy
portfolio mix, through driving profitable data and VAS businesses thereby
future proofing the business against voice led growth alone. This is in line
with the trends in the global telecom markets of building a strong portfolio
mix. Both these segments of data and VAS are growing at a healthy double digit

We will continue to provide differential and superior 3G
experience to customers through our large and superior 3G footprint with speeds
upto 28 Mbps,”¬Ě the company said during an analyst meet recently.

Reliance Communications has already seen tangible evidence
of accelerating mobile data adoption where consumers and business customers are
seizing the benefits of fast, reliable mobile data networks using smartphones
and other mobile data devices such as Tablets.  The recently launched 3G R
Tab has received great response. Reliance is planning to launch the CDMA Tab in
the near future.

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