Telecom company Reliance Communication has exited the B2C business and transformed into a B2B company.
At some point, Anil Ambani led Reliance Communication had 52,000 employees. Now it has come down to only 3,400 – a drop of 94 per cent.
Reliance Communication has exited the B2C business and transformed into a B2B company. The company informed BSE (Bombay Stock Exchange) that it exited its wireless B2C business on January 31st, 2018.
In the B2C space, it had 120 Mn customers but now it serves only 35000 B2B customers worldwide.
It now the focusses on the stable enterprise communications services and the rapidly growing data centre space in India.
RCom’s global submarine cable business in enterprise data across continents, has over 300 enterprise and carrier customers worldwide.
The company informed BSE that it now immune to the tariff war going on the B2C telecom space. It’s operational business fully insulated from the hyper competition, mega capex requirements, financial stress of the wireless sector.
The tariff wars between the incumbents- Airtel , Vodafone, Idea and the new entrant Reliance JIO continue unabated, further dragging down all key financial metrics of the wireless sector. However, post its wireless B2C business exit in Jan-18, RCom is no longer affected by the severe and prolonged wireless sector hyper competition.
The release also said, “It is evident from the latest sector revenue report released by the TRAI, the wireless sector continues to be on a downward spiral, with around 21 per cent revenue decline (Rs. in Cr.) on YoY basis. Overall revenue market size shrunk by over Rs.26,000 Cr on annualised basis.