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25 October 2017
 |
Rcom (The Total Investment & Insurance Solutions)
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 Total Investment & Insurance
Solutions
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. The Total Investment & Insurance Solutions
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. The Total Investment & Insurance Solutions
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.The Total Investment & Insurance
Solutions
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