Maxis Reportedly Looking to Invest Another $1.1 Billion in Aircel Going Forward

By December 18th, 2017 AT 1:57 PM

Struggling telecom operator Aircel’s move to not look for any consolidation or sell off the business could pay off very soon as Malaysia’s Maxis Bhd is still committed to investing in its loss-making entity Aircel. So far, the Ananda Krishnan-led Maxis has invested $7 billion since starting the services, but the company is yet to make any returns.

aircel-kolkata

A report from Economic Times says that “Maxis may invest at least $500 million, but the number could even double to $1.1billion, depending on the company’s final debt-resolution plan to fund capital expenditure and even buy back key tower infrastructure.”

It is also said that Aircel’s lenders are currently in the process of reviewing plans to restructure the company’s Rs 15,500 crore debt. That said, Aircel has so far reduced its debt by Rs 13,000 crore by selling out its 4G airwaves to Airtel keeping in mind that its merger with Reliance Communications will go through. Recently, Anil Ambani-led RCom lapsed the merger with Aircel blaming regulators for taking more time than usual for approving the merger.

Furthermore, the report added that Aircel is still actively in talks with Airtel for a network sharing deal under the ICR agreement, but Aircel ruled out such allegations recently saying that the company can still sustain the market without any help. “The promoter is committed to putting in more money. Aircel’s restructuring options under facilities such as strategic debt restructuring remain open”, said a person to the publication.

Aircel has a strong presence in Chennai, Tamil Nadu, Jammu & Kashmir, Assam and the Northeast circles, where customers choose the operator based on services. And in some circles such as Bihar, UP (East), Rajasthan, and Karnataka, it has customers looking for value for money tariff plans. “We are investing in circles that are doing well. The focus now lies on increasing Aircel’s capacity to offer data services,” said the same person.

Having said that, Aircel is the only small telecom operator left out in the market at the moment. Another recent report added that Aircel could sustain until March 2018 without any issues, then it would be looking out for a potential buyer. However, on numerous occasions, Aircel admitted to the media that it would continue offering operations like how it’s offering now.

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Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

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Sathish, TamilnaduRj meiteilalitKaushikSanjit Roy, Thakurnagar, wb Recent comment authors
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Rj meitei
Rj meitei

If aircel invest same money on 4g and offer a little more than what other telecom offer than surely by 2019 aircel will be the best telecom in india with huges customers…still now aircel is good in north east but most people here choose 3g/4g netwrk.. So aircl offer only 2g and 3g on selected location only this is the main problem here if they offer 3g netwrk on every site then aircel will be best of the best

Sathish, Tamilnadu
Sathish, Tamilnadu

Sure, I believe AIRCEL will invest more on DATA Network in all 16 circles…

Kaushik
Kaushik

The Walking Dead (Aircel) are ALIVE. Runnn!

Sathish, Tamilnadu
Sathish, Tamilnadu

Everything depends on Malaysians billionaire – Maxis owned Anandha Krishnan’s next move… Huge population country like india, 4 to 5 private operators is viable one. Indian mobile users should not allowed any operator hold 20 to 25 % market share in Indian Telecom space… For long term it’s good for all mobile users in India. 20 to 25 % of Market Share in Indian Telecom – is healthy one for market, customers, investors, government, economy and vendors. If we allowed monopoly / cartel situation – Jio, Airtel-Idea in long term, more than 50 Cr low income mobile users may suffer… Read more »

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