It gives me great pleasure that Reliance Communications (RCOM) has had
another year of steady performance despite the recent slowdown in the
Indian economy and the continuing global financial crisis. The steady
results were achieved due to our unique position in the industry and
our ability to offer our growing base of loyal subscribers the choice
of world class services on CDMA, GSM and 3G technology platforms.
With a customer base of over 161 million individual, enterprise, and
carrier customers as on March 31, 2012, RCOM is India''s one of the
largest integrated communications service providers in the private
sector. Our corporate clientele includes over 35,000 Indian and
multinational corporations including small and medium enterprises and
over 800 global, regional and domestic carriers. The enterprise
customer base of the Company includes 850 of the top 1,000 enterprises
Our superior 3G offering coupled with marquee partnerships will further
accelerate the acquisition of high end customers helping us in
generating higher incremental reveneue per customer. The high speed
data offering on our CDMA network will also add to our undisputed
leadership position in the wireless data space. Our mobile portal, R
World, offers the widest range of mobile content spanning e-commerce,
m-commerce, entertainment, music, news, astrology, cricket, bollywood,
maps, search, one-click set- up, access to email and social networking.
It provides full range of communication tools, information and
entertainment that comes with a personal computer, at the price and
convenience of a handset.
RCOM became the first telecom operator to enter the Android tablet
space in the country with the launch of ''Reliance 3G Tab'' in August,
2011. ''Reliance 3G Tab'' is the first branded 3G WiFi Android Tablet by
a service provider in India.
Data has been the key driver of growth over the last year. Our
customers are increasingly drawn to the experience of the mobile
internet and related services. In addition to continuing on
conventional voice-based model, we are now focusing on providing
innovative and affordable high-speed data services catering to the
needs of all customer segments. We look forward to strengthening our
leadership position in voice as well as in data services.
RCOM owns and operates the world''s largest next generation IP enabled
connectivity infrastructure, comprising over 2,77,000 route kilometers
of fibre optic cable systems in India, USA, Europe, Middle East and the
Asia Pacific region. We offer the most comprehensive and competitive
portfolio of enterprise, voice, data, video, internet and IT
infrastructure services catering to large, medium and small enterprises
for their communications, networking and IT infrastructure needs.
The financial year 2012 witnessed highly competitive environment in the
telecom industry resulting in substantial decrease in tariff rates.
Despite this, RCOM was able to achieve steady growth during the year.
The key financial highlights on a consolidated basis are:
a) Total revenues of Rs. 20,382 crore (US$ 4,006 million).
b) Net profit after tax Rs. 988 crore (US$ 194 million).
c) Total operating expenditure Rs. 13,892 crore (US$ 2,737 million).
d) Total assets of Rs. 92,690 crore (US$ 18,219 million). Stakeholders
equity was Rs. 36,721 crore (US$ 7,218 million), while net debt
(excluding cash and cash equivalents) was Rs. 35,849 crore (US$ 7,047
million), giving a net debt to equity ratio of 0.98 times.
RCOM offers CDMA and GSM based wireless services on a nationwide basis.
We are among the top two providers of wireless communication services
in the country, with a wireless subscriber base of over 153 million as
of March 31, 2012 representing a market share of 16.7 per cent.
We have rolled out 3G services in all telecom circles where we have won
3G spectrum, covering over 333 towns. On CDMA platform, our high speed
data offering Netconnect Broadband services are available in over
1,000 cities with seamless handover to 1x service across 20,000 towns.
After the success of the ''Reliance 3G Tab'', we launched the Reliance
CDMA Tab that would allow roaming in over 1.000 towns in the High Speed
Data mode and across 20.000 towns on 1x mode.
We not only provide telecom connectivity to the mass market consumer
segment but also, as an Integrated Telecom Service Provider, we offer
total telecom solutions to our Corporate, SME and SoHo customers.
Additionally, we provide connectivity for devices such as point of sale
terminals and ATM terminals.
2) Global and Enterprise
In order to maximise operating synergies, the business units of Global
and Enterprise Broadband have been combined into an integrated Global
Enterprise Business Unit (GEBU). The GEBU offers the most
comprehensive portfolio of Enterprise, IT infrastructure, National and
International long distance voice, video and data network services on
an integrated and highly scalable platform. Our business segments
comprise Carrier, Enterprise and Consumer business units.
In India, we provide long distance business services including
wholesale voice, bandwidth and infrastructure services, national and
international private leased circuits, broadband internet access, audio
and video conferencing, MPLS-VPN, remote access VPN, Centrex, toll-free
services voice services for offices, voice VPN for corporates and
managed Internet Data Centre (IDC) services.
We are leveraging our existing metro fibre optic networks to establish
direct building connectivity. Currently we are operating in 44 cities
in India with more than 1.16 million buildings connected directly to
our network, serviced by more than 1.52 million access lines. We have
established an enterprise customer base of over 35,000 corporations and
SMEs which include over 850 of the Top 1,000 Indian enterprises and
MNCs. We are the clear market leader in IDC services (Reliance Data
Center) with more than 60 per cent market share.
Globally, we provide carrier''s carrier voice, carrier''s carrier
bandwidth, enterprise data and consumer voice services. We entered the
long distance market in India in mid- 2003 and are one of the largest
carriers of international voice minutes with a market share of 30 per
cent for ILD wholesale inbound traffic.
As part of our Consumer voice offering, we offer virtual international
calling services to retail customers for calls to 230 international
destinations including India under the brand Reliance Global Call. Our
retail services are available to customers in 14 countries. We have
over 2.5 million customers for our Reliance Global Call service.
Our international data business is underpinned by our ownership of the
largest private submarine cable system in the world, directly
connecting 40 countries from the East coast of the United States, to
Europe, the Middle East, India, South and East Asia, through Japan. The
network seamlessly interconnects with our 1,90,000 route Kilometres
fibre optic cables within India.
As part of wholesale offering, we offer national and international
(submarine cable) network infrastructure on both an Indefeasible Right
of Use (IRU) and leased circuit basis, internet bandwidth, IPLC to
carriers, ISPs, content providers and enterprises globally.
We have a very strong and rapidly growing enterprise business segment
outside India. We are among the top 10 Managed Ethernet service
providers in the US and have a strong position in the global enterprise
data market. We have over 2,100 enterprise customers globally in
developed markets of the US, UK, France, Germany, Benelux, Singapore
3) Telecom Infrastructure
Reliance Infratel Limited, a subsidiary of RCOM has signed contracts
with new and existing operators for providing passive infrastructure
which has been an effective strategy for our customers for cost
effective network rollout and improvement in quality of service.
We own 190,000 route kilometres of optical fibre network, providing a
more economical and better quality linking for our tenants as compared
to microwave connectivity. RCOM''s current utilisation of tower slot
assets is nearly 50 per cent and this provides significant potential
for 3rd party tenants. It complements the existing passive
infrastructure and provide an integrated solution to tenants.
As such, we offer our customers an extensive and diverse portfolio of
well-positioned assets and we believe that our wide and expanding
portfolio of tower sites positions us to be able to address the needs
of national, regional, local and emerging wireless service providers in
Our Direct-To-Home (DTH) digital TV Business has moved into its 4th
full year of operations. Reliance Digital TV offers a full combo of
Standard Definition, High Definition- DVR STBs, along with largest
channel bouquet. We also introduced a new technology advancement which
made us the 1st operator to offer all 250 channels in HD like quality
Reliance offers nationwide Direct-To-Home satellite TV services,
employing state-of-the-art MPEG4 technology.
Reliance Digital TV is available across 8,300 towns in the country.
Reliance Digital TV currently has 4.3 million subscribers, with 10 per
cent share of the DTH market in India. This year we launched India''s
first High Definition cum advanced Digital Video Recorder (HD DVR) STB.
RCOM has always maintained the best governance standards and practices
by adopting, as is the norm for all constituent companies of the Group,
the Reliance Group - Corporate Governance Policies and Code of
Conduct. These Policies and Code prescribe a set of systems, processes
and principles, which conform to the highest international standards
and are reviewed periodically to ensure their continuing relevance,
effectiveness and responsiveness to the needs of investors, both local
and global, and all other stakeholders.
We have undertaken several important initiatives and measures in the
six core areas of environment, community development, education,
women''s empowerment, social awareness and health, signifying our
continued and long standing commitment to social and community welfare.
We will continue our journey towards becoming a truly global Company.
Our vision is continued growth and improved operational efficiency. Our
founder, the legendary Shri Dhirubhai Ambani, gave us a simple mantra:
to aspire to the highest global standards of quality, efficiency,
operational performance and customer care. We remain committed to
upholding that vision. Dhirubhai exhorted us to think big. With your
continued support, we will think bigger. Indeed not just bigger but
better, creating ever greater value for all our stakeholders.
Anil Dhirubhai Ambani