Reliance communications
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Large Cap Blue Chips
Forum Discription: You would not need to read any note, brokerage reports or wait for FII recommendation to buy these stocks. These are solid companies with established business & are akin to family silver.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=532
Printed Date: 26/Jun/2024 at 2:58pm
Topic: Reliance communications
Posted By: tyler_durden
Subject: Reliance communications
Date Posted: 25/Oct/2006 at 2:25pm
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reliance communications moved handsomely in past few days. still a lot of steam is left in this stock and at cmp(368) its a value buy. the value will unlock in coming 2-3 years and this one is sure going to be a multibagger. i read a news pick today a part of which states:
"The Anil Ambani-controlled company is launching a slew of hand-held mobile computing devices, which are expected to hit the markets early next month. At present, there are an estimated 50,000 push mail users in the country, expected to increase to over a million in the next 12 months. " apart from this Reliance Communications has inked pack with Hutch & Idea. the day it starts its high speed cable internet in full swing the investors will be rewarded. i think one should plus this stock on dips. |
Replies:
Posted By: basant
Date Posted: 25/Oct/2006 at 2:35pm
| Enam has been pushing this stock. It has forecasted an EPs of Rs 15 for Fy 08 and has a target price of Rs 400.The company should benefit from the operating leverage of its business model but I prefer http://www.theequitydesk.com/forum/forum_posts.asp?TID=221 - |
Posted By: tyler_durden
Date Posted: 25/Oct/2006 at 3:02pm
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undoubtedly bharti airtel is an old player and is good one. but basant ji i like reliance more because it is still trading at a pe lesser than bharti.
secondly reliance has still not forayed into the ventures where bharti has established itself. last but not the least what astonishes me about reliance comm is its p/e ratio. still at around 0.55 and bharti has p/e of around 40. in words of lynch bharti is a stalwart and reliance comm is a fast mover. what you say basant g?? |
Posted By: basant
Date Posted: 25/Oct/2006 at 3:12pm
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You have a point there. The expansion with Rel Comm will bring in economies of scale but I think that PE is earned in the market and Bharti has an RoE of 28% against Rel Comm 18% this gap should narrow but the real cream has been made in these stocks from here on both stocks should triple in 3-4 years. Where did you see a PE of 0.55 for Rel com? I think there is something wrong there.Actually Rel Comm should trade at a PE more then Bharti since the growth in Rel Comm is being priced in by the market.
Both remain growth stocks but the market gets afraid each time Marathon Ambani talks of a technology switch from CDMA to GSM maybe he does that to bargain with the vendors and I am told that he would not switch because thatwould cost about US $ 4-5 billion and also send the stock tanking.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 25/Oct/2006 at 3:39pm
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basant ji i reffered following links for p/e
for reliance: http://www.indiainfoline.com/company/compsnap.asp?lmn=4 Market Cap.(BSE) 70,897.20 52 Week High 351.95 52 Week Low 297.00 High P/E 0.47 Low P/E 0.39 for bharti: http://www.indiainfoline.com/company/compsnap.asp?lmn=4 Stock Price Details As on: Sep 01, 2006 Market Cap.(BSE) 88,870.05 52 Week High 483.95 52 Week Low 410.00 High P/E 45.57 Low P/E 38.61 |
Posted By: basant
Date Posted: 25/Oct/2006 at 4:32pm
There is something wrong (extra ordinary income or typo) we need to check with BSE Rel com cannot trade at a pE of 0.55 otherwise we would have sold our house to buy this stock.
We should also check with moneycontrol.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 25/Oct/2006 at 5:28pm
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i checked again...this time economic times...
reliance trades at a p/e of 36.7 bharti is trading at a p/e of 38.4 so both re comparable and both re good. |
Posted By: basant
Date Posted: 25/Oct/2006 at 5:49pm
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Yes both are good and should reward shareholders but as I said earlier I would prefer Bharti. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: vip1
Date Posted: 26/Oct/2006 at 12:14pm
| Basant, I have a Bharti 3 in 1 Connection (Telephone+Broadband +Iptv). There service is Phenomenal . If your Phone is out of order they say it will be repaired in 4 hours they , do it in 2 . All there sevice guys carry mobiles and if you press the Panic button They even help you out on Holidays. Now that is a sure sign of a great Company and hence the stock. |
Posted By: basant
Date Posted: 26/Oct/2006 at 1:01pm
| I changed over from BSNL broadbans to http://www.theequitydesk.com/forum/forum_posts.asp?TID=221 - |
Posted By: psimajin
Date Posted: 26/Oct/2006 at 11:32pm
| Reliance is in same club as BSNL.. their CC people are so unprofessional. |
Posted By: equity analyst
Date Posted: 27/Oct/2006 at 3:32pm
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well both stocks r making new high today,Reliance comm touching 384 bharti 525,both stocks can be multi baggers in telecom spacestill from these prices. ------------- "Markets are the places where two types of people meet up in the morning: those with experience and those with money. Towards the end of the day, they exchange their assets and go home." |
Posted By: monu_duggad
Date Posted: 27/Oct/2006 at 5:36pm
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Has reliance communication announced its results ? With bharthi coming up with stellar numbers...it will be interesting to see wht rcom does ------------- If you think you can,You Can |
Posted By: tyler_durden
Date Posted: 27/Oct/2006 at 6:18pm
| reliance's result is slated on 30th or 31st october i think and i am sure reliance too will come up with some great numbers..... |
Posted By: tyler_durden
Date Posted: 27/Oct/2006 at 6:20pm
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the market cap of both bharti and reliance is far ahead of other players aka MTNL and Tata tele. bharti and reliance re too good but do we have a chance of a multi bagger in tata tele???
basant ji what do you think of tata tele?? it has too many shares in the market but still it has not given good results. tata is coming up with good plans but they have a lot to do to catch up with bharti or reliance. do you think tata is a good buy?? |
Posted By: basant
Date Posted: 27/Oct/2006 at 10:23pm
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I am not sure why some analysts are comparing Tata Tele to Bharti. That comparision has been there for over 2 years and Tata Tele meanhwile has fallen from Rs 30 to Rs 19 and Bharti has gone up from Rs 300 to Rs 500. So a 1:10 ratio has been converted to 1:28. Still those analysts do not realise. You cannot compare the number 1 with the number 5.
ALso the full company's name is Tata Tele (Maharashtra etc) so this is a regional player with a national brand. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: harshbhandari
Date Posted: 04/Nov/2006 at 10:57am
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Dear Basant,
Could you shed light and your opinion on my query on Reliance Communication. I am invested at good avg price of Rs.268 in this stock and would like to add more qty. Would like to know the views of the members.
Regards
Harsh
|
Posted By: basant
Date Posted: 05/Nov/2006 at 12:18pm
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Borrowing aline from Julius Ceaser:
"Not that I like RCOVL less but that I like Bharti Airtel more"
Both should do very well but Bharti is a much better play I presume. Enam had a target for Rs 400 on RCOVL which I had indicated in one of the earlier posts and that seems reached. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: India_Bull
Date Posted: 06/Nov/2006 at 5:50pm
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Being modest,
I would bet on Anil Ambani to make his flagship company global and compete Mukesh in terms of giving returns to the shareholders..... ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: tyler_durden
Date Posted: 06/Nov/2006 at 7:27pm
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bharti is without any doubt way ahead of the herd when it comes to customer service.
but when it comes to cost, now customers re prefering idea or hutch atleast in metros like gurgaon or noida and delhi. thats what i have seen. my friends or relatives swithchin from airtel. reliance has got a lot of scope to improve. and with the basket of services that reliance is providing i think reliance comm will surpass bharti in two years from now. bharti is already running at a high level of performance, they can improve service but in decimal points.of course their profits re soaring but still i agree with sandeep that anil will make rel comm the leader in this foray |
Posted By: India_Bull
Date Posted: 08/Nov/2006 at 7:31pm
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Heard/read somewhere that Anil Ambani is talking about unlocking value of Reliance communication shareholders, any plans of demerger of the subsidiaries within it in the near future?
Any views or news to confirm this? ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: tyler_durden
Date Posted: 08/Nov/2006 at 7:47pm
| quite possible and if he does so then reliance will comm will show a big movement . i haven't heard it but am already excited |
Posted By: vip1
Date Posted: 14/Dec/2006 at 3:36pm
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Basant, what Bharti has done in 10 years RCOM is catching up in less than 4 . Can't we be as Bullish on Rcom seeing the Pedigree Anil is from? |
Posted By: basant
Date Posted: 14/Dec/2006 at 3:50pm
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R COm already has a market cap for that also I am very apprehensive about CDMA - the subscriber profile of Bharti in terms of spending power etc is also better.Some how though I am not 100% happy with Mittal when it comes to delivering to shareholders Bharti is still better then R com - that is what I feel though there are many who believe that R Com is more cheaply priced!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tigershark
Date Posted: 14/Dec/2006 at 8:46pm
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also rcom shifting from cdma to gsm will require lot of money debt will
go up may be equty also but one can invest in both more bharti and less
rcom
------------- understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things |
Posted By: prosperity
Date Posted: 16/Dec/2006 at 9:28pm
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Total Subscribers Nos:
Bharti - 30 Million
Reliance CL - 29 Million
Hutch - 22 Million
If RCL acquires 100% of Hutch ... you can think what can happen:
Reliance CL - 51 Million
Bharti - 30 Million
And for further growth - Reliance would have 2 source: CDMA and GSM
Whereas Bharti would get only GSM..
If this happens - for future, Reliance would also be adding more monthly subscribers than Bharti ..
My wishes are with Anil ... I hope he wins Hutch's 100% stake !
------------- |
Posted By: basant
Date Posted: 16/Dec/2006 at 9:40pm
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You are right but that additional subscriber would have a cost depends on what price R COm buys it also as to what is the extent of equity dilution. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: prosperity
Date Posted: 16/Dec/2006 at 9:53pm
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Basantji, For some companies you say that looking at PE ratios doesnot make sense since the Growth is so high that next yeat Earnings would again make PEs comfortable (Educomp, etc...) Doesn't similiar logic applies to the scorchingly blazing growth of Telecom Company ?
For RCL, Whatever be the cost of adding 22 Million subscribers and new full-fledged GSM revenue stream for entire future .... that cost would still be very less !!
Isn't it ?
Same concept of PEG Vs. PE applies here also !
At whatever cost RCL acquires it (if it really acquires) that cost would be less if seen from Long Term Perspective !!
Pls. correct me if i am wrong .. ------------- |
Posted By: basant
Date Posted: 16/Dec/2006 at 10:26pm
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Yes, growth would make it cheaper but then we need to see how costly it becomes for it to become cheaper again. That was the point and cannot compoare the two Rcom is more stable with greater logeivity though returns in educomp could be more because it comes with higher risk! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PrashantS
Date Posted: 16/Dec/2006 at 11:46pm
| But really i can count on a IIM A ....what could be the impact of another new player arranging into this field........ |
Posted By: tusharutuja
Date Posted: 17/Dec/2006 at 11:36am
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Also to add to basantji's view, with too many players willing to buy Hutch, surely the bidding war shall carry on until all the bidders except one realize that the price of Hutch now is 'insane'. Its not allways advisable to buy out a company when the underlying industry is already in a boom phase, because in such cases the valuations attained by the bidders are huge.... This brings me to an interesting thought about Mr. Mittal which i read in a newpaper article somewhere long back when somebody was comparing Tata Steel and Mittal Steel -- Mr. Mittal buys out companies only when the underlying industry (steel here) is in a lean patch -- that helps him buy cheaper. Cannot compare it to Telecom but the idea is to buy cheap and make more money. Another example is the Jet Sahara deal...Promoters at times are driven by emotions to acquire companies but don't realize the impact of high valuations. It would be interesting to see who wins the Hutch race and at what price! I personally feel Anil wouldn't let it go, even though he has to shell out more money. |
Posted By: basant
Date Posted: 18/Dec/2006 at 12:04pm
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But if R-com buys out Hutch at less then Rs 5000 per subscriber R-com's market cap could expand. The market values about 2.2 crore Bharti subscribers at Rs 110,000 crores so if the deal is stuck at lower rates those subscribers would be valued at Bharti benchmarks (GSM) so R-com could actually move up all depends on the value at which they take up Hutch!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: investor
Date Posted: 18/Dec/2006 at 3:41pm
Excellent point. Mallya did the same with his acquisition of Shaw Wallace - they were fighting with each other in the courts for the last 20 years, and finally the SW people had the last laugh - Mallya was so determined to buy Shaw Wallace that he paid an insane amount of money to do it - it was atleast 20 to 30% overpriced. Clearly logic and sanity gave way to emotional decision making in that deal. |
Posted By: kulman
Date Posted: 18/Dec/2006 at 3:57pm
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Tushar jee.....You're absolutely right!
Promoters at times are driven by emotions to acquire companies but don't realize the impact of high valuations......
Read how Buffet puts it:
"Of one thing be certain: if a CEO is enthused about a particularly foolish acquisition, both his internal staff and his outside advisors will come up with whatever projections are needed to justify his stance. Only in fairy tales are emperors told that they are naked." --Warren Buffet
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: tyler_durden
Date Posted: 18/Dec/2006 at 5:17pm
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reliance is set to acquire huth this will see its price soaring right upto 600 levels in short term and basant ji i feel it will now surely leave bharti behind now.
do u feel its right to switch from bharti to rel once this deal is thru or the wal mart thing will infuse more steam in bharti |
Posted By: basant
Date Posted: 18/Dec/2006 at 5:34pm
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Firstly Wal mart has got nothing to do with the listed Bharti Airtel. It is tucked away in Mittal's unlisted company. Also about Bharti to reliance comm please see that Hutch will come at a price what matters is the price at which Hutch is acquired and not just that Hutch is acquired. In case the price is lower then the current subscriber value in Bharti then surely the shareholders of Rcom would gain but that can be answred only in time. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: tyler_durden
Date Posted: 18/Dec/2006 at 5:43pm
| thanks a lot sir. but rcom has started moving pretty smartly in past 3-4 sessions from the day this news has hit the papers. thats why i was curious. |
Posted By: basant
Date Posted: 18/Dec/2006 at 5:48pm
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Yes, it could hit new highs but all that will happen before the deal is stuck so if you want to take that punt do it now in this market as they say Buy on rumour sell on news! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 18/Dec/2006 at 6:26pm
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In case the price is lower then the current subscriber value in Bharti then surely the shareholders of Rcom would gain but that can be answred only in time
--------
BasantJi ... the contrarian within me says that could it be a case of Bharti being overvalued then... and Bharti comes down to adjust to the price of Hutch and RCom. (Surely....this happens in a Bear Market) ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: basant
Date Posted: 18/Dec/2006 at 6:47pm
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You said it right "bear Market". Quite funny how investors react to the same set of events depending on what type of a market it is. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: BubbleVision
Date Posted: 18/Dec/2006 at 6:58pm
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Absolutely! ------------- You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer! |
Posted By: surajmnair
Date Posted: 19/Dec/2006 at 6:05pm
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RCOM SET TO BUY HUTCH - COMPELLING REASON TO BUY BHARTI OR ADITYA BIRLA NUVO It is being said that if RCOM buys HUTCH...RCOM gest overnight entry into 16 GSM circles.With an overlap of only 2 circles-West Bengal and Kolkatta between HUTCH's 16 circles and RCOM's 8 GSM circles,as RCOM is already planning to roll out its GSM in14 cirlces.This helps RCOM to reduce the time to market their GSM startegy. Now see the points
1.IF RCOM takes HUTCH, the above said is true but the real competion is between RCOM's GSM and RCOM's CDMA.In all these cities the consumer already has an access to RCOM CDMA and for that the consumers had already spend on handsets.
2.The integration of GSM and CDMA is not that easy.
3.with the coming of 3G, the GSM's will be able to provide video streaming, where CDMA had an upperhand earlier due to its technological benefits.SO the USP with RCOM will die out for good and it will become a level playing field.
4.Last and final, if RCOM has to buy HUTCH, it has to buy 100% because of the 10% ownership cap limit for an existing telecom company to buy another.Buying 100% means huge amount of DEBT financing.Moreover pershare value of HUTCH would be only sold to RCOM on a premium of 15-25% by HUTCHISON.With this much DEBT in RCOMS kitty, if BHARTI having pitted aginst RCOM directly, BHARTI reduces its call tariff rates and therby sacrifies its ARPU for a couple of quarters, then RCOM has to follow suit inorder to keep up the competion.if this is scenario,RCOM with huge debt might duffer a lot.
Inference :
Buy Bharti - The innovator and differentiator.
Buy Aditya - if hutch is sold on a premium, imagine the value of IDEA
Buy RCOM- if you want to see younger brother scoring against elder ones on market cap
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Posted By: basant
Date Posted: 19/Dec/2006 at 6:50pm
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I agree with that view above. Merely buying Rcom because they are buying HUTCH would be a wrong decision also as you mentioned HUTCH will be sold at a premium rather then discount - for the time being it would be better not to preempt the market unless the fine print is out. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: s_praharaj
Date Posted: 19/Dec/2006 at 7:14pm
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I feel junior Ambani is a little confused. He also wants to obertake senior Amabani at the earliest. That's why he is in a jetset speed. He is trying everything, first CDMA then GSM. Taking stakes in various kinds of companies. Only time will tell how much is a success he is. I also hold a small amount of shares in Rcom. I feel it is better to wait and watch before taking any decission. As Basant told the price at which Rcom is acquiring Hutch is most important.
But my personal feeling is that, junior Ambani is more transparent and shareholder friendly than the elder brother. I am not sure about his business acumen. So I adopt a wait and watch policy. ------------- Shashi Praharaj |
Posted By: xbox
Date Posted: 19/Dec/2006 at 5:35am
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HUTCH sale will change the structure of telecom pie. If Bharti gets, it will be double the size of it's nearest competitor. Same case with RCOM. But I see entry of foreign telecom giants as most important factor in this deal. If vodafone get hutch, he has to snap it's ties with Bharti. Remember vodafone is selling it's non-core business and garnering huge cash. Now all depends upon essar guys. Definitely they are not looking to buy HUTchison's share. Sale from one gujju to another is unlikely, so I rule out RCOM chances. Essar will be happy to sell it to some neutral guy. Let's see what next. But this is the most interesting event in telecom industry since TRAI drama. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: kulman
Date Posted: 19/Dec/2006 at 6:09am
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Shashi jee
I agree with what you said "...junior Ambani is more transparent and shareholder friendly than the elder brother."
But a little concerned with this madcap mkt-cap race.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 19/Dec/2006 at 8:36am
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None of these ambanis are transparent. They are doing all this to increase market cap and for the shareholders that is what they want really. Mukesh Ambani listed a company called RPL when it was not doing anything - production is to start in late 2008 but he did not list Reliance Retail can some one ask him why? For Anil all those spin offs etc have come because he wanted to be seperated from his brother. Personally I have a very negative mind set of the Reliance group see what happened to the defence paper scam a few years ago there are many such instances but then that is the way the world is!!!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: omshivaya
Date Posted: 19/Dec/2006 at 11:05am
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I 2nd you on that Basant ji, Ambanis cheap rich people...no intellectual capacity. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: xbox
Date Posted: 20/Dec/2006 at 12:23pm
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Well transparency is all about disclosing companies plan to minority shareholders. It not necessarily mean value enhancement/capital gain for minority holders. I little differ from Basant jee on RPL case. Mukesh never asked ppl to give money or invest into rpl. People subscribed to rpl because of greed. It it ppl to blame to put money into rpl than promoters of rpl. When we know the story then why fools put money there. Good or bad it is ppl to decide. but once company is under public domain, it should disclose all plans etc. etc.
I agree on other part. Reliance was started from manipulation of government tenders and things are progressing in same direction even today. Reliance duo is never known for it's market friendly behaviors. I want to take the matter to SEBI about price manipulation when both were barking to each other. I don't know how many ppl have realized it but they created all these scene to lower share prices. Remember after settlement both picked substantial shares from market or though preferential allotment. I keep equal distance from both brothers.
I don't know why ADAG is doing mumbai metro from REL money. All of know what return that money is going to give. Sonata investment a part of REL is investing into textile companies. For god sake somebody tell me the relation between the two. ADAG is banking on high cash which his companies have.
On other front why RIL needs to foray into Retail. Why he wants RIL's cash for retail business. I don't understand. He will never demerge it as well. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: vkrulz
Date Posted: 05/Jul/2007 at 7:32pm
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Well Guys,
Having worked both for Bharti Airtel and Relcomm , I can definetly tell you this , GSM is better for Voice Calling whereas CDMA is better for Data . If any body has used both GSM phones for calling as well as RElcomm for data connectivity using there laptop would know the diffrence immediately.
Also India including Asia is predominatly a GSM market and will laways remian so.Why do you discount customer perception which at times can kill or make an industry. Indian customers universaly prefer GSM phones over CDMA whenever they can afford it.
Again having worked in the Marketing Department of both the organisations and having access to the real figures I can tell you some thing confidentaly - as far as an investor goes while Anil Ambani may be a meverick in controlling the stock markets , the numer of subscribers reported for Rcomm are all ways over reported - essentialy the subscribers are OTAFE'd ie activated without they billing subscribers - i.e no revenue coming from them , wheareas as in Bharti Airtel the subscriber nos are accurately reported and are of genuine billing customers i.e genuine revenue . THe churn figure of subscribers is also undereported in Rcomm whereas churn is very tightly monitored and controlled in Bharti Airtel. And also going by pure corporate governance the way it is managed by both companies and I would blindly go for Bharti Airtel anyday.
Infact to support my point further let me tell you this - Rcomm has taken off 36 lakh subscribers off its network across India in March year ending quarter just to clean up its books . Ask any senior Relinace Employee nad he can confirm the figure. It only points to one thing, those subscribers were not billing customers but were fake OTAF's customers shown to increase sales figures of the circles. The figure for Delhi circle for instance was reported to have crossed 2 million but then was downgraded to 18 lakhs. Then 3 lahs customers were taken off in March ending and today the real subscriber figure wouls stand at 15 lakhs vs 3 million for Airtel in Delhi.
Guess which company would you want to invest in ?
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Posted By: vip1
Date Posted: 05/Jul/2007 at 8:04pm
| Thank you vkrulz , your analysis as a person who has been with both companies is quite valuable for us. In fact one more ex. of both companies I know had the same view , but I guess here market being so large both companies will do well . |
Posted By: smartcat
Date Posted: 05/Jul/2007 at 10:25pm
Seems very odd. Are you implying that RCom intentionally jacked up the subscriber numbers? What's the point in doing all this if no money is coming in?
The management wouldn't be bothered about influencing the share price of a Rs. 90,000 crore company with reports of subscriber addtions. After all, institutional investors will look at traditional valution parameters like PE ratio, RoCE, net profit etc. However, jacking up the number of subscribers might show that RCom is inexpensive on exotic parameters like EV/subscriber.
As somebody who's worked in the marketing dept of Bharti & RCom, how would you compare the two in terms of new service innovation (Eg - caller ringtones) and advertising/marketing innovation?
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Posted By: vkrulz
Date Posted: 05/Jul/2007 at 11:25pm
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Dear Smartcat,
Sounds like you also have some telecom work ex - is it ?
It is simple - more subscribers means more valuation. After all analyst do put a per subscriber valuation to all telcos.
Also I never implied that share prices might get effected by reporting a few lakh extra subscribers when you have millions on board. But you are definetly forced to think that the management is not completely overboard and is open to cooking its books of account - which does not auger well for investors.
Also between the operator services in India - from a consumer view point - Technology / Money etc is not a diffrentiator - customer service is. And anybody will tell you there is a sea difference Airtel & Rcomm customer service.
Comparing the difference between how these two companies do there marketing / service inovation - Airtel far outpaces Rcomm in all that it does - Airtel - first to introduce caller ringtones, first to bring Life time Pre paid, First to build a big TV property - KBC , First to use personality based advertising - Sachin & Sharukh , First to use neon in ther outdoors and the list goes on and on. Reliance - first to drop call rates only on its own network , First to bring monsoon hungama - at a huge loss to itself.
Also Airtel with its decentralised marketing teams - either is the first to market with innovations or reacts overnight to it. Reliance being buerocratic and centraly driven takes its own sweet time - whereas in this market - first to market almost always wins.
|
Posted By: smartcat
Date Posted: 05/Jul/2007 at 12:06pm
Good point!
Kabhi Kabhi Kuch Jeetne Ke Liya Kuch Haar Na Parta Hai, Aur Haar Ke Jeetne Wale Ko Baazigar Kehte Hain. Lowering rates increase profits, in the telecom world. But going back in time, it does seem like Bharti is the most innovative telecom company. |
Posted By: vip1
Date Posted: 05/Jul/2007 at 10:42am
|
Innovative Miittal v/s Hard Running Ambani ,
Agar Dono Combine ho jai , it will be Deadly Combination !
|
Posted By: xbox
Date Posted: 05/Jul/2007 at 10:45am
|
Agar Dono Combine ho jai , it will be Deadly Combination !
-------------
Are is demerger ke jamage me merger odd lagta hai!!. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tyler_durden
Date Posted: 06/Jul/2007 at 7:14pm
|
[QUOTE=vkrulz] Well Guys,
Having worked both for Bharti Airtel and Relcomm , I can definetly tell you this , GSM is better for Voice Calling whereas CDMA is better for Data . If any body has used both GSM phones for calling as well as RElcomm for data connectivity using there laptop would know the diffrence immediately.
Also India including Asia is predominatly a GSM market and will laways remian so.Why do you discount customer perception which at times can kill or make an industry. Indian customers universaly prefer GSM phones over CDMA whenever they can afford it.
-------------------------------------------------------- i would like to differ: 1. cdma is better even in voice as well...i have used hutch, airtel, rel, tata and idea...hutch and airtel give a good coverage but re too costly... rel and tata offer same quality at a lower price... 2. GSM is dominant in india because it was the first technology...more over not many handset options were available till now...but now motorola and nokia both re introducing new models in cdma as well as gsm...this shows that cdma is growing... CDMA or GSM As a direct result of expanded services, today service providers are consolidating their set of services and offerings to maximum number of locations and are not worrying too much about their competition. The technology does not matter so much today, so whether it is CDMA or GSM, the telecom boom has completely altered the tele-density landscape of the country, which has increased from barely three percent at the beginning of this millennium to as much as 16 percent at present. As companies continue to penetrate deeper into the interiors of India, the tele-density is likely to increase further in the near future. The financials of major operators reflect the changing scenario in the industry. This quarter, both Bharti and Reliance Communications, which are the leading GSM and CDMA operators, witnessed an impressive growth in their topline. Cutting itself away from a traditional mode of CDMA player, Reliance has already ventured towards providing GSM services in the form of 'Smart' in select cities. This may be regarded as a good move as the company will be able to deliver flexibility of providing CDMA as well as GSM services to its end customers. In a scenario like this where customer is the king, future certainly belongs to service providers showing flexibility as well as technological excellence and this is where technological battle lines of GSM or CDMA will be in favor of the customer. ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: nav_1996
Date Posted: 06/Jul/2007 at 11:14pm
| I think reliance is moving quickly towards convergence with their investments in media compared to Bharti |
Posted By: xbox
Date Posted: 06/Jul/2007 at 10:34am
|
At any day GSM scores more points to CDMA, no doubt world is moving to GSM. US gian T-mobile is moving to GSM. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: s_praharaj
Date Posted: 08/Jul/2007 at 3:37pm
|
thanks vklurz
we are not technical guys, but are able to understand a little from the discussions. Both RCom and Bharti are dominating the market, and to me it seems both are will do well in the long run.However those who understand the technology and having the experience of working with the companies can guide better in taking a decission when we have to select one out of the two.
But I feel, when there is a confusion, in such a scenario, it is better to go with the sector leader. that is Bharti Air Tel. ------------- Shashi Praharaj |
Posted By: Mohan
Date Posted: 08/Jul/2007 at 8:03pm
Vipulji,
T-Mobile has always been GSM in the US. in terms of size its
1. AT & T ( GSM )
2. Verizon ( CDMA )
3. Sprint / Nextel ( CDMA )
4. T- Mobile ( GSM )
Vodafone has a stake in Verizon. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: smartcat
Date Posted: 09/Jul/2007 at 5:02pm
What is the average growth rate of companies like Verizon? I hear Vodafone has something like 40% stake in Verizon but no management control. It probably makes sense for Vodafone to sell its stake in Verizon and buy a Chinese telco or a telco in some other emerging market. http://www.indiaearnings.com/sub_india/compnews.php?autono=290738 - Rel Comm Q1 net seen up 103.8% at Rs 1045.3cr
|
Posted By: xbox
Date Posted: 09/Jul/2007 at 6:56pm
|
T-Mobile has always been GSM in the US
------------
Typo Mohan jee. I ment for cingular. ------------- Don't bet on pig after all bull & bear in circle. |
Posted By: tyler_durden
Date Posted: 09/Jul/2007 at 7:22pm
|
what s all the buzz about rel com tower business?? is it going to be a seperate company or part of rel com?? its a huge business given the next 10 year perspective...by 2011 375000 more towers are needed... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: kulman
Date Posted: 09/Jul/2007 at 7:33pm
|
...its a huge business given the next 10 year perspective...by 2011 375000 more towers are needed...
-----------------------------------------------------
I can see us121 smiling as each tower would need inverter batteries!!
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: tyler_durden
Date Posted: 09/Jul/2007 at 7:45pm
|
amara raja will do really good...growth of rel com, bharti, hutch , idea ... all will contribute to the growth of amara .. asahi benefitted from automobile boom so will amara benefit from....telecom boom... ------------- If you aren't fired with enthusiasm, you will be fired with enthusiasm. |
Posted By: Mohan
Date Posted: 09/Jul/2007 at 12:07pm
Vodafone owns 49 % stake in Verizon Wireless, balance 51 % being held by Verizon Communications. It competes on quality of network and not price. Here's a industry comp. Its not strictly comparable as At & T just went thru a merger.
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: basant
Date Posted: 09/Jul/2007 at 7:29am
|
If US telecom majors are quoting at a PE of 20 times then this PE could be the benchmark for Bharti Airtel and Rel Com on the downside. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: kanagala
Date Posted: 09/Jul/2007 at 10:35am
Hi sir, Isn't India should be trading at lower PE compared to US because no risk returns are higher in India. Just curious. ------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |
Posted By: us121
Date Posted: 10/Jul/2007 at 11:23pm
|
There was some debate on CDMA v/s GSM on this thread. I would like to post this article which is just simple and to the point on this subject. No further comment except that today GSM sub has choice of changing phones like they change dial tone every day... ----------------- GSM VS CDMA If you are
a consumer, the battle between GSM and CDMA shouldn't make a difference as long
as you get good service. But given that the industry is waiting to make the
next technological leap into 3G, the sparring between the two rival
technologies will end up affecting you directly. So far, GSM is the more
popular technology in ------------- ABILITY will get u at d top. CHARACTER will retain u at d top |
Posted By: CHINKI
Date Posted: 13/Jul/2007 at 12:14pm
|
TDSAT nixes RCom’s Rs400 cr refund application
Says Anil Ambani-led company did not pay Rs1 crore court fee in advance New Delhi: Telecom tribunal TDSAT has refused to accept Reliance Communications’ application seeking refund of Rs400 crore from state-owned BSNL and MTNL as the Anil Ambani-led company did not pay the court fee in advance. As per TDSAT rules, companies are required to pay 1.5% (up to a maximum of Rs50 lakh) of the amount to be recovered by the tribunal as fee. Since RCOM’s application was for refund of Rs400 crore from two companies, the tribunal had sought Rs1 crore as court fee. According to sources, RCOM had offered to pay the court fee on receipt of refunds from BSNL and MTNL, but this did not find favour with the TDSAT. However, tribunal officials have directed the company to submit the petition again. RCOM had sought refund of Rs250 crore from BSNL and Rs150 crore from MTNL in a dispute over payments made in 2004 in a case of converting international calls as local ones. The issue is related to routing of international long-distance calls as local ones by RCOM using BSNL and MTNL network. The government had imposed a penalty of Rs150 crore. In March 2005, the tribunal had upheld the Rs150 crore penalty by observing that a breach was committed, putting the country’s security in jeopardy. RCOM was also to pay Rs400 crore to the PSUs as charges on incoming international long distance (ILD) calls. Later, Reliance gave bank guarantee, instead of straight payment by cash or cheque to the public sector companies. This bank guarantee was encashed by the state-run firms. At that time, rate for incoming international calls was Rs4.55 per minute, while local call rate was only 30 paise a minute. Source : %20 - http://www.livemint.com/2007/07/13182950/TDSAT-nixes-RCom8217s-Rs400.html ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: deveshkayal
Date Posted: 14/Jul/2007 at 12:03pm
|
RCOMM is contemplating ADR issue of $1 bn. (DNA)
Reliance Communications (RCOM), the country’s second largest wireless operator, has bagged a multi-crore online outsourcing project of the Haryana Urban Development Authority (HUDA).
Highly placed government sources confirmed the development. RCOM would set up a Data Center for the Haryana govt undertaking. The HUDA project would be implemented by RCOM in three months and go live by December end. Industry experts believe this would be the largest non-voice based outsourcing project in the country. HUDA develops and markets industrial, commercial and residential properties and has over a million customers.
UBS has raised its price target to 675 from 600!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: basant
Date Posted: 14/Jul/2007 at 10:19pm
|
Can ADAG ever miss a chance to raise money. NEVER!!! ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mohan
Date Posted: 14/Jul/2007 at 10:24pm
Basantji, I have always wondered how the Ambanis hold such high stakes in their companies inspite of raising money at every available opportunity. Does anyone have an answer for this ? ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: CHINKI
Date Posted: 16/Jul/2007 at 2:32pm
|
RCom acquires US' Yipes for $300m
MUMBAI: Anil Ambani Group firm Flag Telecom on Monday announced acquiring US-based Ethernet services provider Yipes Communications for $300 million (Rs 1,200 crore) in cash - a deal that would scale up its optic fibre network and give a footprint in the American market. "Yipes has 22,000 km of optic fibre network... has operating margin of 55 per cent and is cash positive,'' Reliance Communications Chairman Anil Ambani said here. He said Reliance Communications, which owns Flag, will spend Rs 1,000 crore to roll out Yi pes' services in Asia, Africa Middle-East and Europe in the next one year. Yipes existing customers include Verizon and NTT. RCOM also sees a four to five per cent increase in revenues of Yipes over the next 4-5 years. Mr Ambani said Pramod Haque, managing partner of Norwest Venture Partners would be joining the company. Flag Telecom is a leading provider of international network transport and data services to telecom operators and content providers and Internet communities across the globe. SOURCE : %20 - http://www.thehindubusinessline.com/businessline/blnus/15161302.htm ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: ndzapak
Date Posted: 16/Jul/2007 at 2:32pm
|
http://www.moneycontrol.com/india/stockpricequote/telecom-services/reliance-communications/12/49/RC13 - Reliance Communications will acquire US-based Yipes Communications for USD 300 million. Yipes has 22,000 km of optic fibre network and has clients in Verizon & NTT. Yipes is a US provider of managed ethernet & application delivery. < ="http://202.87.40.52/promos/sponsor_news.js">Yipes has operating margins of 55% and is cash positive. Source : Moneycontrol.com------------- the Equitydesk is the best |
Posted By: vip1
Date Posted: 16/Jul/2007 at 2:49pm
| Anil Ambani says to List Flag this year. |
Posted By: smartcat
Date Posted: 16/Jul/2007 at 4:21pm
|
Yipes! I went to the website of this company and I couldn't understand much of what they do. One can slowly make out the different paths taken by Bharti and RelCom. While Bharti is super-aggressive in local wireless telecom market, RelCom is very aggressively looking at non-wireless revenue opportunities. |
Posted By: kulman
Date Posted: 16/Jul/2007 at 8:41pm
|
Lage raho Anilbhai......Demerger of Flag... Acquisition of Yipes....
Marathon daudne waale saare log ek jaise nahin hote, kya kehte ho Basant jee??
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 16/Jul/2007 at 11:01pm
|
Abhi toh ANil Bhai Mukesh bhai ke peeche market cap ki daud mei lage hai!Helps the shreholders in every way. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: deveshkayal
Date Posted: 16/Jul/2007 at 11:08pm
|
Yes,Absolutely true!
Mukesh want to build a combination of Exxon Mobil and Wal-Mart of India while the marathon wants to build the GE of India (media,financial). There's no doubt that Mukesh will always remain ahead than his younger brother as he is looking at a turnover of 1 trillion by 2010. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: CHINKI
Date Posted: 18/Jul/2007 at 7:31pm
|
RCOM TO SPIN OFF IN-HOUSE BPO INTO PROFITABLE BIZ
ANIL AMBANI TO ANNOUNCE SLEW OF INITIATIVES MUMBAI, JUL 17: The Anil Amabani-led Reliance Communications (RCom) announced on Tuesday that the company will spin off a global-size and profitable BPO business, leveraging in-house skills and operational capabilities. The announcement was made at the company's annual general meeting (AGM) here. RCom's in-house BPO currently has a presence in telecom, BFSI, utilities and entertainment verticals. Ambani, however, presented no other detail of the plan. SOURCE: http://www.financialexpress.com/fe_full_story.php?content_id=170369 - FE ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: CHINKI
Date Posted: 18/Jul/2007 at 11:33pm
|
RCom could also lend its own experience, scale and expertise to expand Yipes’ market in the US. Reliance Communications’ buyout of Yipes Communication through FLAG Telecom signals a clear intent to become an international player in data communications. FURTHER DETAILS IN : http://www.thehindubusinessline.com/2007/07/18/stories/2007071850650400.htm - THE HINDU BUSINESS LINE ------------- TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO |
Posted By: deveshkayal
Date Posted: 18/Jul/2007 at 10:56am
|
Value unlocking from BPO, Flag, Tower and SEZ. I didnt knew that RCOMM has interests in BPO. But how much of it is priced in the current price??? ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: deveshkayal
Date Posted: 19/Jul/2007 at 10:55pm
|
Marathon Ambani has stunned everyone with the valuations of Toer business...More stake sale in RTIL in the next 6-12 months...Value unlocking from Tower business comes to Rs.135/share...
They want to scale Flag to $2 bn in few years...At $2 bn,it comes to 40/share..
Lage Raho Anil bhai !!! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: prosperity
Date Posted: 20/Jul/2007 at 8:42pm
|
The race for max. market cap that the Ambani brothers are in - is a GOOD and HEALTHY competition - much better for investors ..
Anil gets fuelled/pushed from these personal reasons as well - to increase the Mcap of Rel Comm ...
Whereas Mittals are lacking in any such reasons ...
Moreover, Anil wants to become a global player in Communications - An area which Airtel is not even targetting ..
Expanding/Scaling Business Opputunities in Indian Telecom is only for next 3 years.. - After teledensity increases - then what ?
Ambani is more futuristic in communications arena ...
Also because he cannot and does not bother about new areas to suck his energies - Retail, ....
|
Posted By: smartcat
Date Posted: 20/Jul/2007 at 10:15pm
|
Mittal spending his energy on Bharti Enterprises retail, insurance, agri business is not a negative as it is made out to be. Bharti Airtel is mostly managed by professionals.
At this size, the organization automatically becomes bigger than the individual. It doesn't require Mittal to spend time on it. And remember that Marathon Ambani is involved in adlabs, reliance capital, RNRL and reliance energy.
Not sure about 3 years, but I agree. Chinese mobile companies are now growing at 10% only. RCOM spreading its wings is a good sign for long term shareholders.
What's worrying is Bharti Airtel is only concentrating on India and neighbouring countries. When they applied for license in Channel Islands, they did it under the Bharti Enterprises banner. So when 2 promoter companies are in the same business, there is a clash of interest.
Having said that, RCOM diversifying into international businesses involves execution risk in an environment that is more or less saturated.
|
Posted By: kulman
Date Posted: 01/Aug/2007 at 8:01am
|
RCom offers Wimax services in two cities
Reliance Communications Ltd (RCom) has signed up 5,000 subscribers for its wireless broadband service in Pune and Bangalore in the first month of operations, the company said.
The CDMA wireless operator, keen to diversify beyond voice into wireless data, had launched the services in the two cities on 1 July and plans to launch in eight more by the year-end, taking its total subscriber base to 100,000, RCom’s head for broadband services, Prakash Bajpai said of the company’s Wimax-based broadband plans.
Wimax, short for worldwide inter-operability for microwave access, is a standard that is capable of data speeds of 10 megabits per second (mbps) up to 2km away from a radio transmitter. In comparison, third generation (3G) networks promise data throughput of 2mbps and data-friendly cellular networks deliver speeds of up to 512 kilobits per second.
Bajpai said his firm was investing Rs150 crore in the WiMax network. With this foray, RCom has become the biggest Wimax-based wireless broadband operator in the country, even before the government has relaxed the spectrum-charges on the service.
Under the current laws, companies offering this service have to pay the government Rs24,000 per month per base-station and around Rs83 per month per subscriber terminal. As a result, other players in the wireless broadband segment, Videsh Sanchar Nigam Ltd and Sify Ltd, are yet to launch home consumer-friendly tariffs. RCom is offering unlimited download packages starting at Rs750 a month for home consumers. Tariffs for businesses range from Rs1,200 to Rs10,000 a month.
Source: http://www.livemint.com/2007/08/02004513/RCom-offers-Wimax-services-in.html - LiveMint news
--------------------------------------------
The feedback from some users is not that encouraging. Any reactions?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: ndzapak
Date Posted: 05/Aug/2007 at 11:04pm
|
Reliance to introduce money transfer through mobile
Source : DNA Money
Link : http://www.dnaindia.com/report.asp?newsid=1113690 - http://www.dnaindia.com/report.asp?newsid=1113690 ------------- the Equitydesk is the best |
Posted By: basant
Date Posted: 05/Aug/2007 at 8:29am
|
So telecom companies (SS ki bhasha mei wireless) are getting into the new revenue stream areas. Think about the potential if that sim can replace the credit card that we carry. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Mr. V
Date Posted: 05/Aug/2007 at 9:35am
I think eventually somesort of smart card with RFID would replace all our bill payments. It reminds me of my hostel days where everything from food & milk shakes & rum balls in the canteen to disciplinary fines used to get billed to our mess bills. |
Posted By: ndzapak
Date Posted: 12/Aug/2007 at 11:10am
|
R-ADAG to launch first telecom tower exchange Very Interesting The Reliance Anil Dhirubhai Ambani group is setting up TowerX, a tower tenancy exchange platform, through which mobile operators, tower owners and owners who want to rent out space for towers can transact business and book tower capacity online. This first-of-its-kind exchange is designed to help mobile operators save time on their roll-out plans, share infrastructure more efficiently and simplify the complex information on surplus capacity available on mobile towers that can be offered on rent. Designed on the lines of a commodity exchange, the project is being implemented by Reliance Telecom Infrastructure Ltd, the company recently set up by spinning off Reliance Communications’ (RCom’s) tower business. Reliance Telecom Infrastructure already has over 14,000 telecom towers and plans to add 23,000 more this fiscal. Operators with a temporary requirement for tower capacity (due to sudden congestion in an area) can also book spare capacity and pay on a per-user basis. They can also give details of their projected requirement of towers in various areas online The platform will rope in other competing tower companies being set up by operators (like Essar, Bharti and the Tatas) and independent infrastructure operators (like American Tower Company) who can register and use the platform to showcase details of their tower capacity on rent. Link : http://www.business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=294280&chkFlg - http://www.business-standard.com/common/storypage_c.php?leftnm=10&bKeyFlag=BO&autono=294280&chkFlg =------------- the Equitydesk is the best |
Posted By: ndzapak
Date Posted: 27/Aug/2007 at 12:54pm
|
Flag Tele in $100mn deal with European firm Flag Telecom, a subsidiary of Reliance Communications, has signed a $100 million (around Rs 410 crore) gigabit ethernet connectivity deal with a leading European research firm to enable its scientists conduct live video discussions and monitor projects. Gigabit ethernet comprises various technologies that transmit data at speeds of around 1,000 megabits per second (Mbps) compared with ethernet speeds of 100 Mbps. The deal is expected to be announced next week, sources close to the development said. A high-level team of Flag Telecom is currently stationed at Flag Telecom will route the ethernet connectivity on its sub-sea cable system, providing the company with high-speed and hi-definition video and data links. This will provide flexible and redundant trans-ocean routing with over 100 per cent uptime to the research firm's global affiliates and associate research agencies. The traffic is expected to begin within a week of commencement of the deal. The bandwidth provider is also setting up a dedicated channel for the research organisation on its Flag Europe Asia (FEA) and Falcon Cables that would be connected to the US and East Asia over Flag Atlantic cable. This would be then connected to the FEA Cable in This is first contract for the Anil Ambani group company after it acquired Yipes Holdings for $300 million in July this year. The company also got the latter's customer base of 1,000 corporates, most of which are in the financial services and legal services business. Reliance Communications was looking at listing Flag Telecom in the next six months. ------------- the Equitydesk is the best |
Posted By: ndzapak
Date Posted: 29/Aug/2007 at 12:30pm
|
Massive upgrade on superb 1Q result Event �� Reliance Communications (RCOM) reported solid 1Q results with significant positive surprises in key operating and financial metrics. The headline numbers and the quality of earnings also surprised positively. We upgrade our EPS estimates for FY08E by 12.7%, FY09E by 12.1% and FY10E by 9.4%. Consequently, we upgrade our target price to Rs810 (45% upside). Impact �� We believe the growth discount relative to Bharti Airtel in both wireless and overall business that was chronic for RCOM is more or less over. There were four key positive surprises in the 1Q results which investors should note. �� There was significant improvement in 1Q in wireless revenue growth QoQ to 13.6%, compared to Bharti’s QoQ wireless revenue growth of 10.7% in this quarter. This has been a major area of concern for investors in the past. �� Wireless ARPU showed amazing resilience falling just 0.5% QoQ. It was a positive surprise at Rs375 compared to our estimate of Rs361 for 1Q FY08. �� Average revenue per minute actually went up 5.5% QoQ to Rs0.74 in 1Q, the first time it has risen in five quarters. We had estimated ARPM of Rs0.68. �� EBITDA per minute went up 8% QoQ; a big positive surprise in our view. �� Handset subsidy was absolutely in line with our estimates but surprised the market positively with an estimated US$9 for each new CDMA subscriber added during 1Q. The consensus expectation was for much higher numbers. �� Our target price is based on a sum of the parts valuation of the base business (Rs675 based on DCF) and Rs135 for RTIL, RCOM’s TowerCo based on our DCF and the deal valuation established from the sale of 5% stake. Earnings revision �� We upgrade our EPS estimates for FY08E, FY09E and FY10E by 12.7%, 12.1% and 9.4% respectively. We revise our target price to Rs810. Price catalyst �� 12-month price target: Rs810.00 based on a Sum of Parts methodology. �� Catalyst: 1) Allocation of GSM spectrum in 14 new circles; 2) Continued uptick in sub adds led by low cost handsets; 3) IPO of FLAG Telecom and 4) Improvement in occupancy ratios of RTIL towers. Action and recommendation �� We see upside of 45% for the stock price in the next 12 months. RCOM remains our top stock pick in the Macquarie Asia-Pacific Telecom universe and our preferred play on the huge growth story in significant upward revisions in consensus earnings on the back of the results and on continued delivery by the company. With EPS CAGR of 57% in the next two years, RCOM remains one of the two fastest growing wireless companies in Asia-Pac. At our DCF-led valuation of Rs675 for the base business, the PER is only 17.6x FY09E EPS which we believe is justified. Note, we estimate RTIL will only turn PAT positive in FY11. BTW, Basantjee can we move RCom to the Large Blue Chips Section , I mean if brother Rel Cap is there , why not RCom, its in the top 10 market capitalization company in ------------- the Equitydesk is the best |
Posted By: Mohan
Date Posted: 30/Aug/2007 at 4:34am
------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: kulman
Date Posted: 06/Sep/2007 at 4:11pm
|
Reliance Communications Ltd has announced that it has launched "Money Transfer" through mobile phones across the country through it's tie-up with ICICI Bank. This initiative offers Reliance Communications subscribers a modern and easy-to-use alternative means of account to account transfer generally associated with, banks and other agencies, in the most talked about 'Money Transfer' space. Money Remittance market opportunity is estimated to be in the range of $ 24Billion annually including global remittances to India. Through this arrangement, ICICI Bank's existing and potential customers can transfer money to their family and friends having an ICICI bank Account anytime, anywhere in the country using their Reliance Mobile Phones. With the objective of making Money Transfer available to the masses, this service is available on Reliance Mobile World enabled phones including the recently launched and hugely popular Reliance Classic range of phones starting from Rs 777(Black & White) to Rs 1234 (Colour Phones). In addition to reach, low cost, ease of use and faster delivery, the service has the potential to transform the Lives of 97% of the Indian population Living in the Reliance network area of 25000 towns and 6 lakh villages, to be fully connected by March 2008. On the occasion of the launch of this service Mr. Anil Pande, Head Product Development of the Company said, "India is the fastest growing market in the world with a large mobile customer base and is also the world's highest receiver of remittances. In this context we believe M-commerce* will be the next big thing. Our association with ICICI Bank brings a paradigm shift In the way domestic Money Transfer business is conducted in India, which is predominantly being done through the banks and other agencies." ------------------------------------
*As per rumours Anil bhai had initially objected to the term M-Commerce as consumers might think it has something to do with Mukesh bhai!
We need now a separate thread on Rel-Com, or do we have one already?
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 30/Sep/2007 at 12:43pm
Equitymaster.com earnings estimates for Reliance Communications -
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Posted By: kulman
Date Posted: 30/Sep/2007 at 7:48pm
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SmartCat....thanks for that.
Unfortunately couple of my friends sold RelCom after reading First Couple's report wherein they were talking of 2015 valuations etc etc.. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: smartcat
Date Posted: 30/Sep/2007 at 10:15pm
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After the FirstCouple's '40,000 Sensex in 9 months' prediction, I have pulled down all the Aishwarya Rai's posters in my bedroom and replaced it with the couple's. I will not tolerate any criticism or snide remarks directed at the FirstCouple from now. They have impeccable honesty and divine knowledge on the future of the markets. My own private Caribbean island dream depends on this prediction.
But if the Sensex doesn't reach 40,000 next year, I will personally make the couple walk the plank and will maroon them in a deserted Caribbean island.
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Posted By: basant
Date Posted: 30/Sep/2007 at 10:34pm
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Adam said 25,000 are you adding 15,000 from Eve to make it 40,000? ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |