RCom-Aircel Merger Called Off

New Delhi Oct 3: Reliance Communications RCOM has called off the merger with Aircel citing legal and regulatory delays. Currently, the company is reeling under a debt of about Rs 46,000 crore. The Company has announced some alternative measures for debt reduction such as selling real estate as well as tower and fiber business.

Uneven Tariff and Offers
RCOM in a statement has said that "Unprecedented competitive intensity in the Indian telecom sector together with fresh policy directives, adversely impacting bank financing for this sector, have also seriously affected industry dynamics".

The company has added that "unlimited free voice offers and "irrational pricing" by all industry participants have destroyed the profitability of traditional 2G and 3G mobile business".

Debt restructuring
Earlier the company hoped that the debt would come down to Rs. 20,000 crores, while that of Aircel to around Rs. 4,000 crores with the merger. RCom has announced that the prime real estate in Mumbai and Delhi, as well as telecom tower and optic fiber assets, would be sold off by December.

Finally, the Aircel has also confirmed the development but has not unveiled any alternative plans of the debt management.