Wednesday, July 8, 2009

R Com Head and Shoulder


Here is the head and shlder in R Com

1 comment:

Anil Jain said...

I am weary of RCom no matter what..see this:

For the last Seven Quarters starting 30th June, 2007 and ending 31st December, 2008, the numbers for RCom and its peers tell the following tale:

Reliance Communications
% change in subscribers over seven quarters 96%
% change in revenues over seven quarters 5%

TTSL
% change in subscribers over seven quarters 81%
% change in revenues over seven quarters 23%

Bharti Airtel
% change in subscribers over seven quarters 104%
% change in revenues over seven quarters 63%

Vodafone Essar
% change in subscribers over seven quarters 102%
% change in revenues over seven quarters 56%

Idea Cellular
% change in subscribers over seven quarters 127%
% change in revenues over seven quarters 68%

One of the most dominant players in the Telecom sector is showing a increase in subscriber base of 96%, but a corresponding change in revenue of only 5%, when peers have an increase in revenue of as much as 4 times. This is when RCom boasts about its HUGE subscriber base in India. The numbers don't make sense or RCom is cannibalizing its business or giving sim cards for free