NEW DELHI: Anil Ambani's struggling telecom undertaking Reliance Communications (RCom) on Wednesday moved in opposition to closure of 2G and 3G voice-heavy mobile business, a development that can shave off more than three-fourths of the loss-making corporate's estimated 80-million customer base.
The closure -which kicks in from November 30 -also comes at a time when the group is shutting down its DTH business once its licence expires subsequent month.
The move by way of the company , which is saddled with Rs 46,700-crore debt, isn't noticed as surprising by way of the marketplace in view of its tough operations in the face of mounting losses and impulsively growing debt pile.
RCom, which started operations in 2002, mentioned that whilst "optimising" the loss-making 2G and 3G business, it's going to focal point on 4G operations which is assisted by way of revenues from knowledge usage.
"RCom has decided to adopt a 4G-focused strategy for profitable growth of its wire less business. Accordingly , RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30," the company mentioned.
"The company's 4G-led strategy will be executed, as at present, on the back of capitallight access to India's most extensive 4G mobile network, through already operational spectrum-sharing and ICR (intra-circle roaming) arrangements with Reliance Jio," RCom mentioned.
RCom's govt director Gurdeep Singh is understood to have informed staff in regards to the development and the closure of part of the business.
The move by way of the company comes weeks after the cave in of its much-required merger take care of Aircel. The deal would have enabled RCom to cut its debt by way of nearly Rs 14,000 crore, and the corporations blamed the failure over "inordinate delays" caused by way of "legal and regulatory uncertainties and various interventions by vested interests."
The closure -which kicks in from November 30 -also comes at a time when the group is shutting down its DTH business once its licence expires subsequent month.
The move by way of the company , which is saddled with Rs 46,700-crore debt, isn't noticed as surprising by way of the marketplace in view of its tough operations in the face of mounting losses and impulsively growing debt pile.
RCom, which started operations in 2002, mentioned that whilst "optimising" the loss-making 2G and 3G business, it's going to focal point on 4G operations which is assisted by way of revenues from knowledge usage.
"RCom has decided to adopt a 4G-focused strategy for profitable growth of its wire less business. Accordingly , RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30," the company mentioned.
"The company's 4G-led strategy will be executed, as at present, on the back of capitallight access to India's most extensive 4G mobile network, through already operational spectrum-sharing and ICR (intra-circle roaming) arrangements with Reliance Jio," RCom mentioned.
RCom's govt director Gurdeep Singh is understood to have informed staff in regards to the development and the closure of part of the business.
The move by way of the company comes weeks after the cave in of its much-required merger take care of Aircel. The deal would have enabled RCom to cut its debt by way of nearly Rs 14,000 crore, and the corporations blamed the failure over "inordinate delays" caused by way of "legal and regulatory uncertainties and various interventions by vested interests."
RCom to end 2G, 3G voice mobile biz
![RCom to end 2G, 3G voice mobile biz]()
Reviewed by Kailash
on
October 26, 2017
Rating:
