HOME > BUSINESS > RCom’s voice subscribers fall 30% in one year on VLR count

RCom’s voice subscribers fall 30% in one year on VLR count

rcom-4gAnil Ambani Group’s Reliance Communications has seen a sharp fall in its subscriber numbers after the migration of its CDMA network to LTE.

According to the latest numbers released by the company, the total number of voice customers fell by 11.6% in the three months from June to September. Voice revenue fell 8.3% from the previous quarter.

If we compare the September subscriber number with the same number a year ago, the fall is 21%.

But these numbers only reveal part of the picture, as RCom includes non-switched-on users also in its subscriber numbers.

However, many people who have been moved to 4G are not switched on because they either don’t have any 4G phones or they are not interested in the company’s plans.

If we look at switched-on users, also known as VLR users, then the fall is even more drastic.

In Sept 2015, RCom had 108.3 mln switch-on, or VLR users. This year, that number has fallen to 76.2 mln, a decline of around 30%.

The company has always maintained that it did not lose any subscriber that it did not want to lose, when it shut down its CDMA network and switched to 4G.

Indeed, many CDMA users belonged to the lower strata of telecom subscribers, and did not generate much revenue for the company.

DATA USERS

While the loss of voice CDMA users may not be a big worry, what should worry the company is the loss of high-speed (3G and 4G) data users since it launched its 4G service in June.

In the June quarter, the company had 25.4 mln 3G and 4G users. Three months on, that number declined to 24.5 mln.

For comparison, during the same three months, Idea Cellular’s 3G+4G subscribers increased from 27 mln to 30.7 mln.

Part of the reason for the loss of high-speed subscribers is the launch of Reliance Jio. Since both companies use the same network, many would simply get a Jio SIM, which offers free services, instead of using RCom’s SIM.

The Jio impact was limited during the July-September quarter because of difficulty in getting the operators’ SIM cards. Since those difficulties were resolved in October, the current quarter (October to December) is likely to see the full impact of Jio’s free service on RCom’s 4G service.

Secondly, the earlier quarter had seen many RCom users getting free 4G data as part of the migration, but the number of users eligible for free data went down drastically in the last quarter.

Out of the total 24.5 mln 3G and 4G users, about 21-22 mln are expected to be on 3G and the remaining on 4G.

RCom will announce a new set of tariffs, but only after its merger with Aircel is completed sometime in early 2017. It is likely to become a serious contender in the 4G market after that.

Follow ULTRA.news
Why no Jiocoin can ever take on Bitcoin Every few months, there is a new rumor surrounding Reliance Jio, the 4G operator that has taken the country by storm. A year ago, it was Jio DTH, which was supposed to put other DTH operators out of business, and now, it's Jiocoin, which is supposed to put virtual currencies l...
Reliance Jio crosses 15 cr subscriber mark; Idea, Vodafone back to growth Subscriber additions in Nov 2017 The Telecom Regulator's subscriber addition numbers for November showed that new operator Reliance Jio continued to lead the charts in terms of net subscriber addition, but rivals like Idea Cellular and Vodafone too have come back on the growt...
Reliance Jio unveils 3GB, 5GB daily packs at Rs 509, 799 New Plans After disrupting the market with its 1GB per day plans, Reliance Jio has unveiled new packs targeted at heavy users. Two new plans have been unveiled today that were not present on the company's website earlier -- a 3GB per day plan priced at Rs 509 and a 5GB dai...
Jio Impact: 4G overtakes 2G in network size in India A single tower often hosts multiple tenants Reliance Jio, the telecom arm of Reliance Industries, has achieved what was considered impossible barely 18 months ago: India now has more 4G base stations than 2G base stations. In other words, 4G service providers in India have...
TRAI: India data price rises 22% in Q3; 4G accounts for 80% of data use When Mukesh Ambani launched his telecom venture a year ago, it was based on one key assumption: India is a data starved country, and given the right pricing, demand for the commodity is almost insatiable. Going by the latest industry data from the Telecom Regulatory Authority ...
RCom confirms sale of telecom assets to Reliance Jio An RCom exhibition stall Reliance Jio, the firm led by Mukesh Ambani, will walk away with most of the telecom assets of Reliance Communications, led by Mukesh's brother Anil. Rcom said it has "signed definitive binding agreements with Reliance Jio Infocomm Limited for sale...
Inter-ministerial group on telecom woes dismissed crisis theory, blamed telcos for high debt The problem of high debt levels faced by some telecom companies in India was of their own making and the government had a limited to role to play in resolving the same, the inter-ministerial group set up to address the concerns of telecom sector found. The cash flow issues fa...
Govt committed to concept of net neutrality – Manoj Sinha TRAI Chairman RS Sharma Telecom minister Manoj Sinha today said the government is committed to the "the fundamental principles and concept of net neutrality" and is studying the recommendations of the telecom regulator in this regard. The government is keen to ensure "non-...
BSNL posts lower loss, debt in FY17; Revival plan under preparation State-owned Bharat Sanchar Nigam Ltd, which had been seeing a steady recovery in its financial condition in the last three years, found it difficult to keep the recovery going in FY17. According to the latest data given by the Department of Telecom, the company reported a net...
Anil Ambani announces the end of Reliance Mobile Anil Ambani, who warned about the possibility of the emergence of a 'monopoly' in Indian telecom three months ago, today said he was hanging up on his consumer telecom business. Ambani, younger brother to Mukesh Ambani -- the chairman of Reliance Industries -- said the mobile...
Airtel, Idea & Vodafone to unveil 1GB/day pack at Rs 199 With Reliance Jio unveiling its first monthly tariff plans, all eyes are now on the incumbents -- Bharti Airtel, Idea Cellular and Vodafone -- to see how they will respond. Industry sources believe that the three operators will unveil a new 199 plan which gives 1 GB of data per d...
Reliance Jio launches monthly plans 199 & 299 with 1.2 & 2 GB per day As expected, Reliance Jio has launched its first monthly plans -- Rs 199 for 1.2 GB per day and Rs 299 for 2 GB per day. The plans were anticipated after the newcomer unveiled its permanent plans on Diwali -- more than a month ago. The plans price data at roughly the same ...
BSNL, Reliance Jio testing network tie-up – Minister State-owned Bharat Sanchar Nigam Ltd is currently testing an intra-circle roaming agreement with Reliance Jio in Karnataka circle, telecom minister Manoj Sinha said. However, he did not clarify whether the agreement was to allow BSNL users to tap into Reliance Jio's 4G service...
BSNL 4G service likely to start with only 10,000 towers Bharat Sanchar Nigam Ltd, the government-controlled telecom company, is likely to start its 4G services with a modest 10,000 towers. In comparison, players like Idea Cellular, Vodafone and Bharti Airtel have between 50,000-100,000 4G towers, while Reliance Jio has around 200,...
Vodafone offers Rs 2,100 cashback on Rs 3,700 itel A20 smartphone Vodafone India announced a cash back deal on itel's A20 4G smartphone. Under the scheme, anyone who buys the mobile phone for Rs 3,690 will get a cashback of Rs 900 after 1.5 years and Rs 1,200 after another 1.5 years. However, the person has to use the specified Vodafone ...
JioTV now available on PC as well JioTV, the IPTV service from Reliance Jio is now available on the open Internet as well. JioTV website Live TV channels can be watched by anyone on their PC using a Jio ID and an Internet connection. The Jio ID, however, can be set only by using a Jio phone number and ...
TRAI enters the 4G era, uses telecom to stream open house discussions After regulating Internet and broadband services for years, the Telecom Regulatory Authority of India seems to have decided to enter the broadband era by using technology to stream its 'open house' discussions to the public. The regulator is streaming its latest open house dis...
PREMIUM NO MORE? Idea Cellular matches Reliance Jio’s 399 plan Hit by a loss of subscribers, Idea Cellular seems to be having second thoughts about its strategy of always pricing its packs above those of Reliance Jio. Idea offer The mobile operator has now slashed the price of its 70-day unlimited pack to Rs 398 from Rs 448 earlier fo...
RCom lenders get first round of bids for spectrum, fiber and assets – report The lenders of Reliance Communications have got initial bids for the company's assets from the three big telecom companies in India, CNBC TV18 reported, quoting banking sources. The Anil Ambani Group company is under the control of its lenders after it ran aground due to high...
Airtel’s new 4G pack is 30% cheaper than Reliance Jio Bharti Airtel has unveiled two new publicly available 4G plans with 2 GB and 3 GB of data allocation per day, along with free voice and SMS benefits. These plans are unique as currently no other operator offers 2GB or 3G per day at these price levels. Airtel has priced its ...