Gartner Research

SWOT: Reliance Communications, Mobile Services, India

Published: 08 July 2009

ID: G00168521

Analyst(s): Madhusudan Gupta , Anshul Gupta , Neha Gupta

Summary

Reliance is the second-largest mobile operator in India, one of the fastest-growing mobile markets. Though there is still much growth potential in India, Reliance also wants to become a global player, using its expertise in making money from lower-spending customers to give it advantage.

Table Of Contents
  • SWOT Analysis
  • Strengths
    • Mobile Communications Arm of a Large, Well-Funded, Well-Connected and Ambitious Indian Conglomerate
    • Economies of Scale From Large Subscriber Base
    • Expertise in a Business Model That Allows It to Maintain High Profitability From Lower-Yielding Subscribers
  • Weaknesses
    • Cost Structure Disadvantage With Subscribers Spread Across Two Different Mobile Networks
    • Low ARPU Compared With Competitors
    • Weakness in Rural Markets
    • Brand Positioning
    • Limited Availability of Value-Added Services
  • Opportunities
    • Aggressive Move Into the Rural Market
    • Use Upcoming Mobile Number Portability as "Launching Pad" to Grab Market Share of Higher ARPU Users — and Ramp Up Focus on Data Revenue
    • Overseas Investments
    • Lease Spare Capacity on Its CDMA Network to Mobile Virtual Network Operators
  • Threats
    • Quicker Than Expected Slowing of Growth in the Indian Marketplace
    • Mobile Number Portability Risks Accelerating Churn of Subscribers From CDMA to GSM
    • New Competitors
  • Implication for Company Being Profiled
  • Company Overview
  • Methodology

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