Reliance Communications (RCom) slashed its headcount by a whopping 94 per cent over the past 10 years to 3,400, and now being a B2B firm, the Anil Ambani-led firm is insulated from the hyper competition in the industry.
At the peak of its operations, RCom group employed a total of 52,000 personnel. RCom now serves only 35,300 customers worldwide, compared with the more than 120 million (inclusive of B2C) it served earlier, the company said in a statement.
On January 31, 2018, RCom had exited its wireless business-to-customer business and transformed into a pure-play B2B company. Post this exit, RCom is no longer affected by the severe and prolonged wireless sector hyper competition, it added.
No more a mobile company
The company is now focussing on enterprise communications services and data centre space in India, and also has a global submarine cable business, providing enterprise data, across continents. Globally, RCom has more than 300 enterprise and carrier customers.
“The RCom operational business is fully insulated from the hyper competition, mega capex requirements and financial stress of the wireless sector,” it added.
The company was reacting to the turmoil in the Indian wireless sector.
According to the data released by Telecom Regulatory Authority of India (TRAI), the wireless sector continues to be in a tailspin with a 21 per cent fall in revenues. The overall telecom market revenue fell 16 per cent to $22 billion in FY18.
On December 28, 2017, Mukesh Ambani’s Reliance Jio Infocomm (RJio) had emerged as the white knight to acquire RCom’s wireless assets, controlled by his younger sibling Anil. RCom plans to sell its assets to RJio and private equity major Brookfield to pare debt.
RCom share prices closed down 0.31 per cent on a steady BSE, which closed up 0.13 per cent on Wednesday.
Source: The Hindu