RCom shares continue to fall, down nearly 5%
RCom plans to shut down its loss-making 2G business by November 30 .business Updated: Oct 26, 2017 14:22 IST
Continuing to fall for the second straight session, shares of Reliance Communications on Wednesday fell by nearly 5% amid buzz that the debt-ridden company is planning to shut down its wireless telephony business.
After a weak opening, shares of the company further lost 4.55% to Rs 15.70 - 52-week low - on BSE.
On NSE, the stock lost 4.86% to hit a one-year low of Rs 15.65.
The stock had fallen by over 3 % on Wednesday. On Tuesday it had declined by 3.95%.
RCom plans to shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services, according to sources.
“As already announced on October 1, 2017, RCom has decided to adopt a 4G-focused strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017,” the company said in a statement yesterday.
RCom said its “4G-led strategy will be executed, as at present, on the back of capital-light access to India’s most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio”.