By Express News Service
MUMBAI: Indian telecom sector has become oligarchic and is going towards a duopoly or even a monopoly, Reliance Communications (RCom) chairman Anil Ambani told shareholders at the company’s annual general meeting on Tuesday.
Indicating that his company would exit the sector and concentrate on realty business, Ambani said that saddled with a debt, RCom’s priority is to resolve it.
Exorbitant spectrum fees paid to the government and high operational costs have dealt a body blow to the telecom sector further aggravated by the predatory pricing by some players, Ambani said. It is well known that Reliance Jio owned by his elder brother Mukesh Ambani, Bharti Airtel and Vodafone Idea are the three main players in the telecom segment in the country today.
“We have decided that we will not proceed in this sector. Many other companies have taken a similar call. This is very much a writing on the wall... As we have moved out of the mobile sector, we will monetise our enterprise business at an appropriate stage,” Ambani said.
Anil Ambani also thanked his elder brother – Mukesh’s Jio had bought RCom’s assets. “It would be most appropriate for me to thank and acknowledge the support and guidance extended to RCom and me personally by my brother Mukeshbhai Ambani,” he said.
RCom subsidiary Reliance Realty will develop Dhirubhai Ambani Knowledge City, a registered IP and financial technology park, in Navi Mumbai.
