RCom Optimising Infrastructure, Human Resources, Says Taking 4G-Led Strategy to Revive Wireless Biz: Report

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Anil Ambani-led telecom operator, Reliance Communications on Wednesday said that it is taking a 4G-focused strategy to achieve profitable growth for its wireless business, even as it will optimising its 3G and 3G footprint in the country by November 30, 2017. In a statement to ET, RCom said that it will also optimise related infrastructure and human resources in the country.

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The ailing telecom operator is preparing to shut down most of its wireless business, following its failed attempt at merging operations with Aircel. The company has been undergoing a strategic debt restructuring program in the country through its divestment strategy. It has also announced the closure of its direct-to-home (DTH) business in India.

“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,” it added.

The telecom operator has reportedly informed its employees that November 30 will be their last date of employment with the company.

Gurdeep Singh, executive director of Reliance Telecom, has blamed Reliance Jio for bringing creative destruction through free voice and cheap data services. Notably, the company hasn’t made this development official, but an audio recording of Singh’s address to employees is doing rounds on social media.

“We stand in 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,” Singh said.

The executive said that segment wise – ILD voice, consumer voice and 4G dongle post-paid will be migrated to the enterprise as long as it is profitable, but everything else will be shut down.

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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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