At present, RCom is serving 35,000 businesses through the enterprise, data centres, undersea cables and international voice calling verticals and will get half of its revenues from abroad.
Reliance Communications (RCom) on Tuesday said it will exit the telecom business completely and will focus on real estate going forward.
RCom has obtained approval of 100% Indian and foreign lenders on its asset monetisation plan for overall debt resolution, company's chairman Anil Ambani said at the annual general meeting on Tuesday.
At present, RCom is serving 35,000 businesses through the enterprise, data centres, undersea cables and international voice calling verticals and will get half of its revenues from abroad.
Reliance Realty, a wholly-owned subsidiary of RCom, at present owns and operates DAKC, a 133-acre registered IT park in Navi Mumbai. DAKC will be developed to create a commercial space of 30 million square feet and the valuation of this development project, as per HDFC Realty, is estimated to be over Rs 25,000 crore.
The company already has 3 million sq ft of built-up space, which will be leased out to multi-nationals and the company expects revenue accruals through it from this financial year itself.
The telecom sector is saddled with a debt burden of over Rs 7.7 lakh crore and employment in the sector has halved over the last two years. The hyper-competition in the industry has led to over 20 lakh job losses.
"There has been a creative destruction of the telecom sector resulting in creation of oligopoly, which is going towards a duopoly and maybe even a monopoly in the future," Ambani said.
RCom owes about Rs 45,000 crore to a group of 38 lenders, including Chinese banks. According to the debt resolution plan, it will sell spectrum, fibre and tower assets and develop real estate assets to reduce its debt by around Rs 40,000 crore.
RCom will pare Rs 25,000 crore of its debt by selling assets and transferring its spectrum dues to third parties. The entire proceeds will be used for prepayment to lenders, the company had said earlier.
The company is awaiting final approvals for spectrum sharing and trading from the Department of Telecom (DoT).
Reliance Jio, the new telecom player, owned by Anil Ambani's elder brother Mukesh, has bought the wireless assets of RCom, estimated to be around Rs 3,000 crore.
Last year, RCom had signed definitive binding pacts with RJio for sale of its wireless assets -- spectrum, tower, fibre and MCN (multi-channel network) -- as part of an Rs 18,000 crore asset monetisation plan.
The entry of Reliance Jio in the industry triggered a consolidation spree that reduced the telecom sector to three private players – Airtel, Vodafone Idea, RJio. Vodafone India and Idea Cellular have merged to create the biggest telecom player. Telenor has exited the Indian market, Aircel has filed for bankruptcy and RCom closed down its wireless services last year with a decision to focus only on enterprise and underground sea cable business.
(With inputs from agencies)
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