Rcomm : A company with a vision to go no where :
Rcomm: A pride company of Shree Dhirubhai Ambani (late), now led by his son Mr. Anil Dhirubhai Ambani.
This was the company which turned market and entire face of telecom sector in India, no doubt a telecall for the cost of a postcard was the vision of India's greatest entrepreneur. His two siblings were successful in launching the same. it was an eyve catcher and thunder from blue to the existing players then.
Today, Rcomm has got to teach few lessons for all the admiring business men out there. Rcomm is Debt ridden company which has now more debts than its earnings with more than 388M debt, company needs a major turn around. Rcomm is not just troubled by debts but also by the 2G case, alleged spectrum wastage.
Rcomm had been in the game of telco's since early years of telecommunication, though the classic players were not interested to bringing any tech advancements and were enjoying the fruits of very very minimal competetion. Rcomm had changed things, it made even a common man to afford a mobile.
This opportunity is never been used properly, Rcomm had failed to capture market, in rural areas where network was a hurdle, company's CDMA did capture the market over there but it couldn't do so in urban. the much awaited 2G spectrum is also allocated between 2005 to 2008 but GSM was a very big night mare for Rcomm. Here below shows the market share in India.
The Rcomm share is very minimal, it has wide coverage and it is also interested to sell its towers by leasing them. why doesn't they do in improving business?
here is the clear picture of Debt
Revenue has decreased in 2012 and it did gain in 2013 but it couldn't reach the expectations. Rcomm had a deal with RIL subsidary to lease its towerrrs for 12000 Cr. the CEO's called it a win win deal.
Neither the market nor the investors had felt so, shares had dropped from 105 to 104.
Critics question, how much of this can change the debt figures ? Rcomm hadn't participated in 4G auction and its 3G services are only limited to the advertisements rather than reality.
My take:
I don't think if Rcomm top management had forgor the reality.
Rcomm had never tired to get into serious play.
Rcomm needs a complete fresh turn around to keep it live.
A company can't lease its assets to revive from its own debt, even if this works for short time but in longer run we have to feed our selves.
This was the company which turned market and entire face of telecom sector in India, no doubt a telecall for the cost of a postcard was the vision of India's greatest entrepreneur. His two siblings were successful in launching the same. it was an eyve catcher and thunder from blue to the existing players then.
Today, Rcomm has got to teach few lessons for all the admiring business men out there. Rcomm is Debt ridden company which has now more debts than its earnings with more than 388M debt, company needs a major turn around. Rcomm is not just troubled by debts but also by the 2G case, alleged spectrum wastage.
Rcomm had been in the game of telco's since early years of telecommunication, though the classic players were not interested to bringing any tech advancements and were enjoying the fruits of very very minimal competetion. Rcomm had changed things, it made even a common man to afford a mobile.
This opportunity is never been used properly, Rcomm had failed to capture market, in rural areas where network was a hurdle, company's CDMA did capture the market over there but it couldn't do so in urban. the much awaited 2G spectrum is also allocated between 2005 to 2008 but GSM was a very big night mare for Rcomm. Here below shows the market share in India.
The Rcomm share is very minimal, it has wide coverage and it is also interested to sell its towers by leasing them. why doesn't they do in improving business?
here is the clear picture of Debt
Revenue has decreased in 2012 and it did gain in 2013 but it couldn't reach the expectations. Rcomm had a deal with RIL subsidary to lease its towerrrs for 12000 Cr. the CEO's called it a win win deal.
Neither the market nor the investors had felt so, shares had dropped from 105 to 104.
Critics question, how much of this can change the debt figures ? Rcomm hadn't participated in 4G auction and its 3G services are only limited to the advertisements rather than reality.
My take:
I don't think if Rcomm top management had forgor the reality.
Rcomm had never tired to get into serious play.
Rcomm needs a complete fresh turn around to keep it live.
A company can't lease its assets to revive from its own debt, even if this works for short time but in longer run we have to feed our selves.
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