RCom Reduces Employee Base By 94%; Says Biz Insulated From Hyper-Competition
By Economic Times Telecom
June 13, 2018
NEW DELHI: Anil Ambani-led Reliance Communications said that its operational business is fully insulated from the hyper-competition, mega capex requirements, financial stress of the wireless sector. It added that its employee base now stands at 3400, a reduction of 94% from 52,000 employees.
The telco, in a statement, said that the tariff wars between the incumbents- Airtel , Vodafone, Idea and the new entrant Reliance Jio continue unabated, further dragging down all key financial metrics of the wireless sector.
“However, post its wireless B2C business exit in January, 2018, RCOM is no longer affected by the severe and prolonged wireless sector hyper-competition,” the company said.
“As is evident from the latest sector revenue report released by the TRAI, the wireless sector continues to be on a downward spiral, with 21% revenue decline on YoY basis. Overall revenue market size shrunk by over Rs.26,000 crore on annualized basis,” it added.
RCom said that it has transformed itself into a pure B2B player and is completely focused on – the stable enterprise communications services and the rapidly growing data center space in India with over 35,000 B2B customers in India.
The company’s global submarine cable business in enterprise data across continents, with over 300 enterprise and carrier customers worldwide.
RCom now serves only 35,300 customers worldwide; earlier, the total number of customers served was over 120 million, including B2C or retail service customers.
The Ambani-owned telco, that is in a rush to pare its debt of Rs 46,000 crore via the Jio deal, has recently sealed a pact with minority shareholders of its tower unit -Reliance Infratel by agreeing to pay them Rs 232 crore. It may also seal a settlement pact between Rs 600 crore -700 crore.
The possible truce will help RCom exit the insolvency proceedings and sell most of its wireless assets to Reliance Jio Infocomm (Jio) and repay its lenders.