What RCOM. Offers Reliance Jio….. 70,000 km: Domestic

Infra-city fibre network along

1.15 million Buildings 22,000 km: US based fibre network

65,000 km: sub-sea cable

Network

50,000: No. of towers running

At law utility rates

Why RCOM Deal Make Sense For RIL… It will be able to at infrastructure at

10-20% of cost of setting it all up

It will be able to bundle 2G minutes

From with its data offerings

Apart from 2G spectrum, it will be

Able to utilize the cables for last-mile

Access

Not hit on finances as RIL is effectively

a Zero-debt company with cash reserve

Of Rs. 80,000 crore.

What RCOM. Gets In Return…. Rs. 12,000 crore: payment for intercity

Fibre deal already signed

Rs. 7,700 crore: Additional money in

the next two years

2.9: Improved debt- to-Ebitda ratio from

5.3

*(If all four deals are signed)

What it means for Bharti… Faces onslaught on2G, 3G and

4G fronts

Has to continue investments to build

infrastructure and maintain lead in

traditional voice as well as data

segments

Has to deal with the combined lobbying

might of Ambanis

Rcom +RIL vs Bharti

1. Bharti will be fighting Ambanis on two

fronts – a cash strapped RCOM in 2G

and 3G and a cash rich reliance Jio on

4G and data

2. The deals between brothers will

improve the debt on RCOM’s books,

making it more nimble

3. RCOM is more focused on profitability

than growth for two years. RIL on its

side will allow it to push growth

4. Retail will continue to burn cash and

Mukesh Ambani has 80,000 crore plus

of cash for burning and can strain

Bharti

5. Reliance Jio’s Pan India presence in

4G and access to fibre-to-home

network of RCOM may obliterate

Bhati’s first-mover advantage

6. Bharti will have to invest more to keep

its lead in 2G and 3G services