Reliance Communications (RCom), owned by Anil Ambani, may soon shut down its wireless business. According to sources, the company has told its employees that their last working day will be on November 30. Following the company’s decision, Reliance’s DTH service will be completely shut down in November.
Reliance Telecom’s Executive Director, Gurdeep Singh, has given information to his employees this week. There is an audio clip of conversation with Gurdeep Singh’s staff. Gurdeep told his employees, “We are standing in a situation where we have to shut down our wireless business. We made every effort to run it, but now it is not possible for us to run the company for more than 30 Days.” Moreover, after contacting through email on this issue, Reliance Communications has not responded.
In this audio clip, Gurdeep Singh further said, “After shutting down the wireless service, the company can migrate to ILD Voice, consumer voice, and 4G postpaid dongle service, as the services run by the company will be discontinued. Our DTH service license will expire on November 21. We will not make this renewal. The company’s growing competition from of Reliance Jio is considered as the main reason for its closure.”
Experts say that the company’s strategy is to close down the low-cost 2G service and focus on the more beneficial 3G and 4G services. The telecom department has recently cleared the merger of RCom and Sistema Shyam.
This merger will also extend the validity of Reliance communication’s spectrum portfolio that is operated in eight major cities. This includes West Bengal, Karnataka, Delhi, Tamil Nadu, UP-West, Gujarat, Kolkata, and Kerala in 800 MHz and 850 MHz band during the period of twelve years from 2021–2033.
RCom has implicated the accountability to pay Rs 390 Crore per year for the next preceding 8 Years to the target date, which is unpaid for spectrum procurement by SSTL. The overall transaction is expected to get closed by the first week of November of this year.
The destructive strategy of Mukesh Ambani’s Reliance Jio has impacted not only the business of RCOM but has also the revenue of the other players of the telecom sector.