A court diktat prevents the telco from selling its 2G or 3G spectrum while it continues to lose money amid a fund crunch and high debt.
“The transaction will help reduce the liability of unsecured creditors, benefitting all stakeholders including lenders and shareholders of RCOM,” said the telco’s statement.
Tech Mahindra’s withdrawal brought relief for RCom, which is reeling under Rs 45,000 cr debt and is on verge of shutting a major part of its wireless ops.
RCom plans to monetise spectrum assets in the 800MHz, 900MHz, 1800MHz and 2100MHz bands by sharing and trading with other Indian telcos, most likely Jio.
The company' s chief operating officer, Balesh Sharma said even after the merger with Idea Cellular takes place, the joint company will push both the brands ahead.
Telecom is truly in turmoil now. Analysts said smaller telcos will continue to face the heat while larger ones will run an extremely tight ship to sustain.
Recruiters said those with more than eight years of experience will have the toughest time and even junior-level employees will find the market choked.
The 'creative destruction' of Jio was also a factor since it 'crippled' many players and eroded an industry that got its revenues from voice business.
This move is expected to increase average revenue per user in the industry in the next 3-6 months and market leader Airtel is expected to benefit the most.
"15% of the market was 4G LTE about 18 months ago; it’s now shifting rapidly. About 50% or so of it is now LTE," Larry Paulson, president at Qualcomm India said.
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