Skip to main content

Reliance Communications is Asking Its Users in Gujarat to Move from 2G to 4G

Struggling telecom operator Reliance Communications (RCom) urged its users in Gujarat to shift from 2G to 4G technology, as the company’s 2G spectrum will expire later this month. RCom sent an SMS to all its subscribers using 2G services to immediately move to 4G, otherwise, they can’t use the services anymore after this month.
Reliance-Jio-tribunal
“We wish to inform that the company has initiated the migration of its customers in Gujarat circle to an all 4G network, prior to the expiry of 2G spectrum in that circle end September 2017,” the Anil Ambani owned company told BSE Thursday.
As said earlier, RCom’s 2G spectrum is set to expire later this month, which the company bought 20 years ago. Gujarat is one of the major circles for the Anil Ambani-led telco as it has over 5.4 million subscribers in the same circle, which is not at a small number by any means.
Currently, RCom is on the verge of merging with another struggling operator Aircel, but both the operators are facing a lot of challenges ahead of the merger. Both the operators already announced that the combined entity will be called as ‘Aircom.’
The major intention behind this merger is to reduce the debt of the companies. At the moment, RCom is under several financial issues. The company recently revealed that its debt has extended to Rs. 45,700 crore, and is shelling out Rs. 3,600 crore as interest annually. To be precise, RCom’s debt is currently over 4.6 times its earnings, along with an EBITDA of Rs. 9,800 crore.
It would be interesting to see how RCom manages to bring down the debt to the promised Rs. 20,000 crore to lenders by December this year. On the flip side, Aircel’s debt is said to be around Rs. 18,000 crores to Rs. 20,000 crores.
However, Aircel’s debt is a reasonable one, and the company sold the 2100 MHz spectrum to Airtel for Rs. 3,000 crores recently. The combined market share will be 14.65% after the merger, even though they’re losing subscribers every month on a bigger note.
For now, AirCom will have earnings before interest, tax, depreciation and EBITDA of Rs 15,000 crore based on current trends. However, AirCom’s debt will go down because it has time to go public, even after completing the merger.
The merger is expected to complete by the end of this year and has already received approvals from NCLT, SEBI.

Comments

Post a Comment

Popular posts from this blog

Google adds Sticker and Bitmoji support to Gboard for Android

Google has officially rolled out Stickers and Bitmoji support for its Gboard app on Android devices. After updating the keyboard app for Android, users will see a new sticker tab in the keyboard next to emojis and GIFs. Users can share the stickers on various apps. The latest Gboard update from  Google  is currently rolling out in phases and will be available for all Android users over the next few days. The stickers and Bitmoji can be downloaded from the play store. Users can insert these stickers or Bitmoji using the latest app into any other app that supports image pasting. “With the latest Gboard for Android update, you can now easily share our new downloadable stickers or Bitmoji in any app that supports image pasting, including your favorite messaging apps on Android ,’’ reads Google’s  blog post . How to get started with the new Gboard To get started with the latest Gboard, make sure you’ve updated to the latest version of the app. After you have update...
Post a Comment
Read more

Google Chrome Gets New Features To Boost Your Productivity

  Google Chrome browser for desktop snagged a feature update with a bunch of new features tagged in. These new features are completely focused on the productivity of the users and especially students. Check out these new features coming on Chrome.  Google Chrome New Features Tab Groups Source: Google There was a feature called tab groups released not long ago and Google has made improvements to this feature. You could have made groups to before but now you can collapse those groups easily by clicking on the group name. This is really helpful to those who keep a lot of tabs open on their browser. Touch-friendly tabs for tablet Using the Chrome browser on a touch screen device will be much easier as the user interface has been switched to more touch-friendly. There are bigger icons and a better tab organizer which looks better than the normal interface. Preview Tabs Another feature that is in beta is the ability to preview a tab by h...
Post a Comment
Read more