Anil Ambani's struggling telecom venture Reliance Communications(RCom) on Wednesday Oct 25,2017 moved towards closure of 2G and 3Gvoice-heavy mobile business, a development that may shave off more than three-fourths of the loss-making company'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 next month.
The move by the company , which is saddled with Rs 46,700-crore debt, is not seen as surprising by the market in view of its difficult operations in the face of mounting losses and rapidly growing debt pile.
RCom, which began operations in 2002, said that while "optimising" the loss-making 2G and 3G business, it will focus on 4G operations which is assisted by revenues from data 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 said.
"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 said
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 next month.
The move by the company , which is saddled with Rs 46,700-crore debt, is not seen as surprising by the market in view of its difficult operations in the face of mounting losses and rapidly growing debt pile.
RCom, which began operations in 2002, said that while "optimising" the loss-making 2G and 3G business, it will focus on 4G operations which is assisted by revenues from data 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 said.
"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 said
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