After loan of Rs 46,000 Cr Reliance announces to shut down 2G services

NewsBharati 26-Oct-2017

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Mumbai, October 26: Laden with a debt of Rs 46,000 crore, Reliance Communications is shutting down its 2G wireless operations, that'll result into loss of half of its 8 crore subscribers.

Reliance Communications Spokesperson said “the company’s 4G-led strategy will be executed, as at present, on the back of capital-light access to India’s most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio.”

Meanwhile, 3.7 crore 3G and 4G users will be shifted to its enterprise business. The move was taken a week after R-Com called off its merger with Aircel. RCom and Aircel in September last year had signed a binding agreement to merge their mobile businesses.

After the merger fell through, RCom said it would pare debt through sale of assets. It has spectrum across 800, 900, 1,800 and 2,100 megahertz bands, valued at over Rs 19,000 crore, based on last auction pricing.

The telecom operator is also looking to sell its tower assets and its land bank in Navi Mumbai and Delhi, valued at more than Rs 10,000 crore. It has already appointed investment management company JLL as an adviser.

Reliance RCom Reliance Communications Anil Ambani Loan Business Communication Reliance Jio Mobile Aircel 2G