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Reliance Comm. to monetize enterprise, global undersea cable business: Anil Ambani
TT Correspondent |  |  18 Sep 2018

Reliance Communications’ (RCom) Chairman Anil Ambani said that the debt saddled operator has complete backing of its global and Indian lenders in its asset monetisation plan and will monetise its enterprise and GCX businesses.

The operator’ asset monetisation deal is with Reliance Jio for fibre, spectrum, MCN, tower and some of its land parcels will go to Canadian asset management firm Brookfield for a total of about Rs 18,000 crore.

The Ambani owner operator which shut down its wireless operations due to industry competition has a debt of Rs 46,000 crore and is fighting court battles with telecom department and running against time to pay its 39 lenders.

The telco now plans to concentrate on its enterprise and undersea cable businesses, but monetise them as well.

Shares of RCom were down by 3.5% and trading at Rs 16.50 a piece during the day trading hours on Tuesday.

The chairman during Friday’s AGM also added that RCom’s subsidiary Reliance Realty will develop its 133 acre land parcel into a commercial hub that has been valued by HDFC Realty to be over Rs 25000 crore.

Reliance Realty owns the land parcel called DAKC in Navi Mumbai and the aim is to create a 30 million square feet commercial hub.

Ambani also commented on the telecom industry and said that it was reeling under a debt of Rs 7.7 lakh crore and the financial stress has forced the sector to halve its employment with 20 lakh jobs being lost due to hyper competition.

He said that rules of mobile telephony have been rewritten in last two years and from oligopoly it is moving towards duopoly and may lead to monopoly as well.

    
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18 Sep 2018(IST)  
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