The forecast was such. Aircel could not declare himself bankrupt if he did not compete in the competition. Last Wednesday, the sixth largest telecom operator in India, the National Company Law Tribunal (NCLT), including its two division Digital Wireless and Aircel Cellular, submitted its application for bankruptcy declaration in Mumbai. News Business Today.
Malaysian-based Maxis Communications Berhad is owned by 74 percent of India-based Aircel. In 2006, the company bought the first Aircel shares. Afterward, the company invested in Aircel Malaysian billionaire Ananda Krishnan, owner of Maxis Communications Berhad, is the lion's shareholder. The investor will face $ 700 million loss due to Aircel's own bankruptcy petition.
Aircel said in the statement, they submitted an application to the NCL, under section 10 of Indian Bankruptcy Act. It urged Aircel Limited to announce bankruptcy with Desnet Wireless and Aircel Cellular.Aircel has told Telecom Regulatory Agency, the Trio to stop the service in six circles in February. At the same time, in a letter, the company told the trick of its financial plight, the company said. In this situation, the final dispute and uncertainty among customers, distributors, retailers, and partners have been created, Aircel Authority said.
Reliance Jio started operations in India's telecom sector in September 2016. After the entry of the Indian billionaire Mukesh Ambani-controlled Geo, it is forced to turn off the Aircel business as the fourth telecom operator. Competitions are heavily damaged after Geo started the telecom sector in India.
In the statement, Aircel said, initially, George's cost-effective voice calls, text messages, and free data services create intense competition. The acquisition and integration of India's telecom sector increased due to the force. Unable to survive the competition, Norwegian Telenor handed over the activities of their Indian division to Airtel almost free. The wireless data business division of Tata Teleservices is also forced to follow the same path. Mukesh Ambani's younger brother Anil Ambani, controlled Reliance Communications (Rakkam), is facing a debt burden of 42 billion rupees. Reliance Jio is going to buy Wireless Infrastructure Resources.
In the statement, Aircel said, despite various inconsistencies, they were committed to continuing to perform. That's why they took the initiative to integrate the wireless business division with any other operator. But the attempts of the organization failed. Even Aircel was discussing to integrate business with Anil Ambani-controlled Rakam. The last failure of the last attempt to survive in the market failed, the company failed. Considering the overall aspect, they are not seeing any option to declare bankruptcy, the concerned people do not see.
In India, there are 850 million rupees of Aircel subscribers who have pledged Rs 15,500 crore. The company has withdrawn its operations from Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Maharashtra and Uttar Pradesh (West), which has been effective on January 31. Aircel subscribers are also in danger. After Idea Cellular, the Vodafone number has been stopped calling the company's customers. Vodafone and Idea have already severed all ties with Aircel because the billions of rupees 'interconnected service' bill is owed.