Struggling telecom giant Reliance Communications has inched closer to ending its 2G and 3G voice-heavy mobile business. The closure comes at a time when the group is shutting down its DTH business once its license expires next month. The move by Anil Ambani's venture does not come as a surprise as it currently groans under a massive debt of Rs 46,700 Crore. Rcom said that while “optimising” the loss-making 2G and 3G business, it will focus on 4G operations which is assisted by revenues from data usage.
“RCom has decided to adopt a 4G-focused strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30. 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,” the company said. Executive director Gurdeep Singh reportedly informed employees about the development and the closure of a part of the business.
