Reliance Communications acquires over 1.2 million subscribers in March 2007

Reliance Communications has announced that the Company has acquired over 1.2 million wireless subscribers in the month of March 2007. The Company has also maintained its position as India's second Largest wireless operator, with a re-verified wireless subscriber base of over 28 million as on March 31, 2007.

The Company is the country’s foremost truly integrated telecommunications service provider, with an aggregate over 30 million customers as on March 31, 2007, across its wireless, wireline, broadband, and national and international Long distance businesses.

As on March 31, 2007, the Company has completed re-verification of 85% of its entire wireless subscriber base, in accordance with the industry-wide requirement from the Department of Telecommunications (DoT) in the interests of national security.

In accordance with the DoT's requirements, subscribers that could not be verified at the end of the stipulated period, despite intensive efforts made by the company, have been deactivated. However, the Company will continue its subscriber re-verification initiatives, and customers submitting the requisite complete documentation will be re-activated within 48 hours.

There will be no adverse impact from the re-verification exercise, either on total revenues or profitability, as the de-activated customers did not generate any material revenues in the last quarter. In fact, the Companys’ ARPU (average revenue per user) is expected to increase by 12% as a result of the re-verification exercise, making it one of the top 3 players in India in terms of ARPU.

Source : Equity Bulls

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