MUMBAI: Reliance Communications (RCom) is thought to be final down major portions of its wi-fi business in the next 30 days, blaming among other factors, the "creative destruction" brought in by new entrant Reliance Jio's unfastened voice and inexpensive data services and products, and has informed its workers that their closing date of employment can be November 30.
"We stand at a situation where we need to call it a day on our wireless business and this would bring the curtains down on our wireless business 30 days from now. And as a result, we tried whatever means to sustain and put oxygen in the business but we will not be able to sustain the business beyond 30 days from now," Gurdeep Singh, government director of Reliance Telecom, who used to be additionally the CEO and co-CEO of the mobility business, is thought to have informed workers Tuesday, in line with an audio recording of the speech available with ET.
ET couldn't independently test the authenticity of the audio recording. RCom didn't in an instant reply to detailed emailed queries on the matter.
"Segment wise - ILD voice, consumer voice and 4G dongle post-paid will be migrated to enterprise as long as it is profitable. But besides these three, everything else will be shut down. We have published in newspapers that as our DTH license is expiring on 21st of November and we are not renewing license. So that will also mark our exit from DTH business. So that is restructuring of overall wireless and consumer business," Singh added.
The tower business will remain operational since it's bringing in business with its tenacities with Jio and other private operators, he stated. RCom is in talks to sell its stake in its tower unit to Canada's Brookfield.
People aware of the matter stated that the company is planning to close down its 2G operations, weed out its low reasonable earnings according to person (ARPU) generating subscribers and focus on only the successful portions of the 3G and 4G services and products - which might be housed beneath the endeavor business - so that you can lower losses.
Singh indexed out the challenges the business has faced starting from giving up CDMA business that forced them to let cross of consumers, long time taken to merge Sistema Shyam Teleservices with itself, and after all the proposed merger with Aircel that used to be canned as a result of many causes together with court circumstances and Supreme Court's refusing to give a cross forward till Aircel is 'exonerated'.
The 'creative damaging' of recent entrant Reliance Jio Infocomm used to be additionally a factor behind this name because it 'crippled' many players and eroded an business that were given its revenues largely from the voice business, Singh stated. Jio since its release has made voice unfastened for its shoppers.
"All of us need to move on. 30th November is our last working day," stated Singh, who has been with the telco for the closing six years.
The Ambani company is present process a strategic debt restructuring program and the telco's merger with Aircel combined with its stake sale to Brookfield were a very powerful to its plans to shear some Rs 25,000 crore of its Rs47,000 crore debt. With the primary deal off, and the second being renegotiated downwards, the operator had previous stated it has chalked out an alternative plan involving sale of tower, fibre, spectrum, and real property assets, which could generate over Rs 25,000 crore that may be used to pay off lenders.
"We stand at a situation where we need to call it a day on our wireless business and this would bring the curtains down on our wireless business 30 days from now. And as a result, we tried whatever means to sustain and put oxygen in the business but we will not be able to sustain the business beyond 30 days from now," Gurdeep Singh, government director of Reliance Telecom, who used to be additionally the CEO and co-CEO of the mobility business, is thought to have informed workers Tuesday, in line with an audio recording of the speech available with ET.
ET couldn't independently test the authenticity of the audio recording. RCom didn't in an instant reply to detailed emailed queries on the matter.
"Segment wise - ILD voice, consumer voice and 4G dongle post-paid will be migrated to enterprise as long as it is profitable. But besides these three, everything else will be shut down. We have published in newspapers that as our DTH license is expiring on 21st of November and we are not renewing license. So that will also mark our exit from DTH business. So that is restructuring of overall wireless and consumer business," Singh added.
The tower business will remain operational since it's bringing in business with its tenacities with Jio and other private operators, he stated. RCom is in talks to sell its stake in its tower unit to Canada's Brookfield.
People aware of the matter stated that the company is planning to close down its 2G operations, weed out its low reasonable earnings according to person (ARPU) generating subscribers and focus on only the successful portions of the 3G and 4G services and products - which might be housed beneath the endeavor business - so that you can lower losses.
Singh indexed out the challenges the business has faced starting from giving up CDMA business that forced them to let cross of consumers, long time taken to merge Sistema Shyam Teleservices with itself, and after all the proposed merger with Aircel that used to be canned as a result of many causes together with court circumstances and Supreme Court's refusing to give a cross forward till Aircel is 'exonerated'.
The 'creative damaging' of recent entrant Reliance Jio Infocomm used to be additionally a factor behind this name because it 'crippled' many players and eroded an business that were given its revenues largely from the voice business, Singh stated. Jio since its release has made voice unfastened for its shoppers.
"All of us need to move on. 30th November is our last working day," stated Singh, who has been with the telco for the closing six years.
The Ambani company is present process a strategic debt restructuring program and the telco's merger with Aircel combined with its stake sale to Brookfield were a very powerful to its plans to shear some Rs 25,000 crore of its Rs47,000 crore debt. With the primary deal off, and the second being renegotiated downwards, the operator had previous stated it has chalked out an alternative plan involving sale of tower, fibre, spectrum, and real property assets, which could generate over Rs 25,000 crore that may be used to pay off lenders.
RCom may shut wireless business in 30 days, employees put on notice period
![RCom may shut wireless business in 30 days, employees put on notice period]()
Reviewed by Kailash
on
October 25, 2017
Rating:
