Anil Ambani-led Reliance Communications is preparing to shut down its wireless business in the next 30 days, following its failed attempt at merging operations with Aircel. 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 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," 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.
The development follows a day after Reliance Communications made official its intention to shut down direct-to-home (DTH) business in the country.
"We have published in newspapers that as our DTH license is expiring on 21st of November and we are not renewing the license. So that will also mark our exit from DTH business. So that is a restructuring of overall wireless and consumer business,” the executive said.
Singh, however, added that the tower business will remain operational. The tower business is making money through its tenacities with Reliance Jio and other operators, he said.
RCom has been undergoing a strategic debt restructuring program in the country.
