Reliance Communications plans to shut down 2G services in a month; 3G and 4G to remain operational for now

Debt-ridden Reliance Communications plans to shut down its 2G business in about a month & continue to operate 3G and 4G services until they are profitable.

Debt-ridden Reliance Communications plans to shut down its 2G mobile business in about a month and continue to operate 3G and 4G services till the time they remain profitable, industry sources said.



RCom Executive Director Gurdeep Singh is learnt to have informed employees that the company has reached a "situation where we need to call it a day on our wireless business" and this would lead to the closure of "wireless business 30 days from now".

The company will "continue to operate ILD voice, consumer voice and 4G dongle postpaid services" and mobile tower business until the time they remain profitable and all the other business will be shut down, he has said.

An email query sent to RCom remained unanswered.

The move comes after the company, reeling under debt of around Rs 46,000 crore, failed to close to its wireless business merger deal with Aircel in the beginning of this month.

RCom and Aircel in September last year had signed a binding agreement to merge their mobile businesses. But, on Sunday, RCom announced that the agreement had lapsed owing to legal and regulatory uncertainties, objections by interested parties and delays in receiving relevant approvals.

Singh is also learnt to have mentioned the closure of the company's DTH business once its licence expires on 21 November.

While Aircel was one of the several possible transactions that Ambani was pushing for to reduce RComs debt, the company said on Sunday that it will consider an alternate plan to cut debt, which includes sharing and trading of its spectrum or airwaves valued at about Rs 19,000 crore.

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