The casualty of  an operator moving to  a newer technology and shutting down legacy ones was felt on Wednesday when Reliance Communications (RCom), the telecom company led by Anil Ambani, said  it would shut down its 2G operations by November 30 and upgrade its 24 crore 2G customers to 3G and 4G services depending on their preferences and handsets.

Severe competition, especially services from a new entrant, is the reason behind this, sources said. The other operators still using the 2G technology are state-run BSNL and MTNL and some private players in rural areas.

RCom had earlier shut down its CDMA businesses as well. “As already announced on Oct 1, 2017, RCom has decided to adopt a 4G-focussed stra tegy 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 30 November 2017,” RCom said in a statement.

“The company’s 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," it said.

A PTI report quoting sources privy to the development said the firm has asked its 1,500-2,000 employees to look for jobs as 2G and 3G cellphone services business will be shut down. However, telecom minister Manoj Sinha later said there were no job losses in the telecom sector following consolidation and transformational changes.

RCom is in the midst of a strategic debt restructuring, under which it has entered into a standstill agreement with banks requiring it not to pay any interest or principal till December 2018.

With Rs 44,000 crore of loan on its books, the company is also shutting down its direct to home television business from next month after failing to find a buyer. On October 1, RCom had called off its merger plans with Aircel, citing regulatory and legal hurdles.

RCom shares closed down 3.24 per cent at 16.45 on the BSE.