Rcom To Beef-Up Enterprise Business

Anil Ambani''s Reliance Communications may have emerged a strong number two in the Indian telecom space, but high-end users that bring better margins and better revenues are still eluding the company.

While competitors like Hutch and Airtel are way ahead in the race, no wonder that the next big focus for Reliance Communications is to build up its enterprise services like Blackberry.

The margins in this business is 8 to 10 times higher than retail, also reflects on better ARPUs. It will certainly flow into our balance sheet and have a positive impact, President of Reliance Communications Prakash Bajpai said.

Currently Reliance Communications clocks about 14 per cent of its revenue from enterprise business and wants to go all out to take lions share of the market pie.

The recent $300 million Yipes acquisition is also an effort to take the fast lane to bolster its enterprise capability and tap into the $100 billion enterprise market opportunity globally.

Going forward focus for Reliance Communications is increasingly going to be on Enterprise services, one that will bring better margins. Launching services like Blackberry is one step in that direction, a market in which Reliance Communications has so far lagged behind.