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Reliance Comm adds 1.2 mn subscribers

Reliance Comm adds 1.2 mn subscribers
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First Published: Mon, Apr 09 2007. 10 54 AM IST
Updated: Mon, Apr 09 2007. 10 54 AM IST
By Chitra Somayaji/Bloomberg
Bangalore: Reliance Communications Ltd, India’s second-largest wireless operator, added 1.2 million new mobile-phone subscribers last month and disconnected some existing users who failed its verification tests.
The company, controlled by billionaire Anil Ambani, ended March with more than 28 million wireless users after canceling accounts for users who couldn’t be verified according to government regulations.
The verification process will increase average revenue per user by 12%, and won’t lead to a decline in profit or sales, Reliance said. Its share in India, the world’s fastest growing wireless market, declined to 17.2% following the disconnections from 20%, Vinay Jaising, an analyst at Morgan Stanley in Mumbai, said in a note.
Reliance Communications disconnected 15% of its subscribers, or 5.6 million users, as on 31March, Jaising estimated. He rates the stock as “overweight.”
The company will activate the accounts for the disconnected users within 48 hours of verifying the necessary documents, according to the statement issued on 6 April.
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First Published: Mon, Apr 09 2007. 10 54 AM IST
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