Telecom operator Aircel can shut down its business in India. According to media reports, Aircel is in debt and it has suffered a considerable loss. Apart from this, the merger between Reliance Communications and Aircel deal is also canceled. Now Aircel has no choice but to end its business.
“There is no point in staying if you are losing more money and relevance in the market. Its only option is to sell its customers and revenue to one of the incumbents and offset its debt,” said Sanjay Kapoor, former chief executive
Experts and analysts believe that Aircel could soon shift its business from India. Aircel does not have a 4G spectrum. Due to a court order, he can not sell 2G or 3G spectrum. Media reports indicate that there is a loan of around Rs 20,000 crore on Aircel. The company, which has a debt burden of nearly Rs 46,700 crore, has been desperately looking for a survival plan.
“It is a sign of things to come. We expect further consolidation to defend market share as the market is expecting new disruptions and new entrants,” said Rohan Dhamija, partner and head of India and South Asia at consulting firm Analysys Mason.
“R-Com and Aircel will have synergy in terms of both revenue and cost. Revenue synergy will be attained primarily through increased market share and better quality and quantity of spectrum,” Dhamija further said.
Also Read:
Microsoft CEO Satya Nadella on a two-day visit to India
11 iPhone X seized by officials at Mumbai airport
Xiaomi announced MIUI 9, See the features