Cost Cuts May Hit Reliance Communication’s Competitiveness: Analysts

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Reliance Communications is limiting capital spending as well as is relocating base stations, shutting large-format stores and cutting headcount as it aims to reduce cost. While the strategy could improve near-term profitability, analysts caution that it may in the medium term hurt the telecom operator’s competitiveness against larger rivals.

Executives at vendors to India’s No. 4 carrier that ET spoke to say the company has shut or relocated some 10,000 base stations, or wireless access points. At the end of fiscal 2013, RCOM reported some 50,000 towers in its assets while a year later, it had 43,000, leading to some analysts also noting that the network was shrinking. However, the company maintains that it has only relocated unprofitable base stations to areas which would generate higher returns. Original post at ET Telecom

Wahengbam Rorrkychand

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Website: http://www.blog.tonsetelecom.com

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