In a conference hosted by Citigroup at London, RCom has said that the incremental GSM capex @15% of a greenfield rollout as it will be riding on its existing passive infra, backhaul, distribution, billing and CRM systems.
RCom management believes that tariffs have already come down and may not be a sustainable strategy for new entrants. On a question on How RCom will try to gain the market share, the company emphasized on 3 points,
- Expansion of the addressable GSM market
- Prevalent high prepaid churn
- Mobile Number Portability which can be used to churn top-end users
It is easier said than done in our view because of simultaneous launch of operations by otherp layers and incumbents extending the reach to maintain their growth rates.
