This week Anil Ambani claimed that the telecom sector is in an “ICCU” with lenders and government most at danger, and alerted of a monopolistic market coming up.
He also pledged to get RCom out of its complexities by end of March 2018, claiming its lenders are in support of all its deeds. With the entrance of Mukesh Ambani, his elder brother, supported Reliance Jio wrecking the previously spirited market, Anil Ambani claimed that we are probably heading towards a market with restricted competition and feared that it might convert into domination.
“The mobility or wireless sector is in the ICCU from any point of view you look at. It is not in the ICU, it is not in the general ward, it is in the ICCU,” Ambani claimed at yearly general meeting of Reliance Communications (RCom) here. “It is a universal danger for government, for its incomes, it is a systemic danger for our banking segment and it is what I dub as creative devastation of a segment,” he claimed.
Noting that more than the years as the number of providers coming to 6 from more than a dozen, there was a sharp drop in spirited segment where almost all worldwide companies who were here have stepped out. “I am certain that they see stuffs that permit them to write-off huge amounts of cash and step out the country. It can’t be the authority of the market that is pushing them to exit but it has got to be from other factors of the segment that is pushing them to exit,” he claimed.
Ambani claimed that fresh lending to the segment has entirely stopped after caution of Reserve Bank in April to other banks and speculated how the once-sunshine segment can uphold service quality as it needs Rs 1 Trillion in spending yearly. Alerting that the segment is moving towards a monopolistic condition, he claimed, “If consumer is king and customer is supreme, can we afford to be a duopoly, an oligopoly, or a monopoly?”
RCom has a loan of Rs 45,000 Crore and has been given a freeze till December 2017.