At a time when GSM subscribers in India set a new record by adding highest ever subscribers in October-2008, Reliance Communications struggled to managed to stay flat M/M in subscriber additions.
RCom added 1.76 m new subscribers with 1.38m for CDMA and 377k for the GSM. Total RCOM CDMA subscribers now stand at 48.2m and 9.5m GSM subscribers taking its total Wireless subscriber base tally to 57.8 mn.
Despite decent subscriber additions, we remain concerned over the increasing competition in the sector and possible downside risks to ARPUs/margins. For RCOM in particular, possible margin pressure from pan-India GSM launch and high foreign exchange debt remains a concern.