RCom to shut down 2G operations by Nov-end

Girja Shankar Kaura

Tribune News Service

New Delhi, October 25

Anil Dhirubhai Ambani Group-controlled Reliance Communications (RCom) plans to shut down its 2G mobile business in about a month. It will be migrating its 2G and some of the 3G-based customers to 4G.

The telecom operator has also asked the majority of its employees to exit the company by November 30. The debt-ridden company, while continuing its 4G service, will also optimise its 3G services particularly in the areas where they are not profitable.

In a statement, RCom today said, “As already announced on October 1, 2017, RCom has decided to adopt a 4G-focussed strategy for profitable growth of its wireless business. Accordingly, it will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017.”

“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,” an RCom spokespersons said.

Reports suggested that 60 per cent of its customers, who are using 2G-based technology, will be asked to either migrate to better technology or port out to some other operator.

RCom Executive Director Gurdeep Singh has apparently informed the 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 postpaid services” and mobile tower business till the time they remain profitable and all the other business will be shut down.

The company has Rs 44,000 crore of loans on its books and is finding it hard to service its dues as a result of increased competition.