Profit

Reliance Communications To Shut Down 2G Mobile Business In A Month

The company has also asked a number of employees to quit as part of its winding up of the operations, say sources.

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Reliance Communications To Shut Down 2G Mobile Business In A Month

The move comes after RCom failed to close merger deal with telecom operator Aircel early this month.

New Delhi: Debt-ridden Reliance Communications plans to shut down its 2G mobile business in
about a month and continue to operate 3G and 4G services till the time they remain profitable, industry sources said. 

RCom Executive Director Gurdeep Singh is learnt to have informed employees that the company has reached a "situation where we need to call it a day on our wireless business" and this would lead to closure of "wireless business 30 days from now".

The company will "continue to operate ILD voice, consumer voice and 4G dongle post paid services" and mobile tower business till the time they remain profitable and all the other business will be shut down, he has said. A email query sent to RCom remained unanswered. 
The move comes after the company, reeling under debt of around Rs 46,000 crore, failed to close to its wireless business merger deal with Aircel in the beginning of this month.
RCom and Aircel in September last year had signed a binding agreement to merge their mobile businesses. But, on Sunday, RCom announced that the agreement had lapsed owing to legal and regulatory uncertainties, objections by interested  parties and delays in receiving relevant approvals. 
Singh is also learnt to have mentioned closure of company's DTH business once its licence expires on November 21.
While Aircel was one of the several possible transactions that Ambani was pushing for to reduce RCom's debt, the company said on Sunday that it will consider an alternate plan to cut debt, which includes sharing and trading of its spectrum or airwaves valued at about Rs 19,000 crore. 
 

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