Tata Teleservices counted losses of Rs 27,500 crore in the year 2017-18 This is the highest loss of a company in India's corporate history in any accounting year. News Business Standard
Since the advent of Reliance Geo Infocomm, the telecommunications market in India has become increasingly contested. Especially the Geor aggressive pricing policy has put other companies in jeopardy. In this case, relatively small telecom operators are facing the most problems. These operators are facing continuous losses. Therefore, in October, Tata Group sold its telecom division to Tata Teleservices Consumer Mobile Business Bharti Airtel.
Reliance Communications (RCOM), the country's second telecom operator, has achieved the second highest loss in the history of corporate India in the current fiscal year. Anil Ambani-led company's losses reached Rs 23,900 crore in the year 2017-18. Rakome has shut down their wireless business and sold 24 billion rupees to Telecom Infrastructure Reliance Geo.
According to a source, due to the presence of Reliance Jio in the telecom sector and intense competition, smaller operators are going out of the market. Its impact on the whole telecom sector.
Tata Teleservices revenue revenues in the fiscal year 2017-18 At the same time, the company's management stood at 660 million. According to analysts, the loss of Tata Teleservices increased due to the sale of Consumer Mobile Business Division.
Tata Group has decided to sell the unit of Tata Teleservices as the Consumer Mobile Business Department continues to suffer losses. Tata Group launched it jointly with Japanese mobile operator NTT Dakomo. In December 2014, Dekmo sold 26 percent of its shares in the company due to continuous losses.
There is doubt about the future of the Tata Teleservices residual business. Because in March, former managing director of Tata Teleservices Mukund Gobind Rajan wanted to give $ 100 million to acquire the remaining business of the company. In this case, he was accompanied by private equity firm, TPG. But Tata Sons, the parent company of Tata Teleservices, has rejected the offer. It is said from Tata Sons that the remaining business of Tata Teleservices will be integrated with Tata Communications. However, the company has not yet got the approval of the government for the integration.
In fact, Enterprise Communications and Fiber segment departments of Tata Teleservices are now operational.
Tata Teleservices Tata Group's Telecom Unit, which started operations in 1995. At present, 70.4 percent shares of the company owns Tata Sons Limited and the remaining shares are owned by Tata Group's other companies.
Tata Sons has collected 150 million dollars from international market in June this year to pay for Tata Teleservices loan. This is the first time since 2007 that the Tata Sons collected funds from the international market to raise funds.
Tata Group was asked to take initiative to stop the activities of Tata Teleservices last year. At that time, the chairman of Tata Group was evaluating the decision to stop the activities of their mobile services business division. But after reaching agreement with Bharti Airtel on selling Consumer mobile business divisions, the company reached the agreement.
The integration and acquisition trend among telecom companies operating in India due to Reliance Geo increased. In order to overcome Reliance Geo, the top telecom operators have already decided to strengthen the business through unifying activities. According to telecom sector analysts, four telecom operators will operate smoothly in the telecommunications sector of India by 2020. It will include - three private sector organizations and one state-owned.