RCom has reportedly told its employees that their last date of employment will be November 30.
Anil Ambani's Reliance Communications (RCom) might shut down a big part of its wireless business in the coming month, reported the Economic Times.
According to the newspaper, RCom has blamed several factors for the shutting down but has said that Reliance Jio's free voice calls and cheap data plans have hugely impacted its business.
RCom has reportedly told its employees that their last date of employment will be November 30.
"We stand at a situation where we need to call it a day on our wireless business and this would bring the curtains down on our wireless business 30 days from now. And as a result, we tried whatever means to sustain and put oxygen in the business but we will not be able to sustain the business beyond 30 days from now," Gurdeep Singh, executive director of Reliance Telecom, who was also the CEO and co-CEO of the mobility business, is believed to have told employees Tuesday, according to an recording of the speech available with ET.
"Segment wise - ILD voice, consumer voice and 4G dongle post-paid will be migrated to enterprise as long as it is profitable. But besides these three, everything else will be shut down. We have published in newspapers that as our DTH license is expiring on 21st of November and we are not renewing license. So that will also mark our exit from DTH business. So that is restructuring of overall wireless and consumer business," Singh added.
Quoting people familiar with the latest development, the report stated that the company is also planning to close down its 2G operations, and will now focus on only the profitable parts of the 3G and 4G services - which could be housed under the enterprise business - in an effort to cut losses.
Currently, RCom is in the process of strategic debt restructuring under which banks will not collect interest till December this year.
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