RCom, reeling under debt of around Rs 46,000 crore, decided to shut down its voice call services after it failed to close its wireless business merger deal with Aircel in the beginning of this month.
Reliance Communications will shut down voice call service from December 1 and its customers can move to other networks by the end of the year, as per direction issued by telecom regulator Trai.
Loss-making telecom operator Reliance Communications will shut down voice call service from December 1 and its customers can move to other networks by the end of the year, as per direction issued by telecom regulator Trai today.
The banks can force a debt recast on December 31 and may even exercise their right to convert debt into equity but RCom chairman Anil Ambani said it wouldn't come to that as the telco expected to reduce debt by `25,000 crore by the end of September with the merger of its wireless business with Aircel to form Aircom and the sale of a stake in its towers to private equity fund Brookfield. RCom had net debt just short of `45,000 crore at the end of March.
Ambani said if the company finds its outstanding debt unsustainable, it could sell the remaining overseas business it holds under the Global Cloud Exchange banner, comprising undersea cables, or pare some of its 50% in Aircom or even sell its remaining 49% economic interest in the tower arm.
The chairman sought to assuage investor concerns on RCom's financial situation after a delay on some interest payments and a downgrade of debt ratings by several agencies amid a crash in the stock price.“We are grateful to our lenders... and clearly we are disappointed at their (rating agencies') recent downgrades which have occurred due to the telecom sector crisis and unforeseen events,“ Ambani said in his first press conference since January 2011, which had been on Reliance Power, and the first since 2009 on RCom. He was speaking to reporters immediately after concluding a meeting with lenders.
Ambani said if the company finds its outstanding debt unsustainable, it could sell the remaining overseas business it holds under the Global Cloud Exchange banner, comprising undersea cables, or pare some of its 50% in Aircom or even sell its remaining 49% economic interest in the tower arm.
The chairman sought to assuage investor concerns on RCom's financial situation after a delay on some interest payments and a downgrade of debt ratings by several agencies amid a crash in the stock price.“We are grateful to our lenders... and clearly we are disappointed at their (rating agencies') recent downgrades which have occurred due to the telecom sector crisis and unforeseen events,“ Ambani said in his first press conference since January 2011, which had been on Reliance Power, and the first since 2009 on RCom. He was speaking to reporters immediately after concluding a meeting with lenders.
The Telecom Regulatory Authority of India (Trai) in direction to all telecom operators said that RCom on October 31, 2017 intimated it that "RCL (Reliance Communications Limited) shall provide only 4G data services to its customers and as a result will discontinue to provide voice services to the subscribers... with effect from 1st December 2017."
The Telecom Regulatory Authority of India (Trai) in direction to all telecom operators said that RCom on October 31, 2017 intimated it that “RCL (Reliance Communications Limited) shall provide only 4G data services to its customers and as a result will discontinue to provide voice services to the subscribers… with effect from 1st December 2017.”
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