Reliance Communications Chairman Anil Ambani has said that company has enough spectrum needed to offer good-quality telecom services across 2G, 3G and 4G space, and that a virtual merger with Reliance Jio had is now in effect. The company chairman said that after the merger with Aircel, the combined entity will be among the top operators in 12 circles in India. He said that within 90 days of launch, the subscriber base of the company’s 4G services had already crossed the 1 million customer-mark using over 1GB data. Also Read - Airtel Rs 79 plan vs JioPhone Rs 75 prepaid plan compared: Which offers better value?Also Read - Reliance JioFiber plans with free Voot Select subscription: Check plans, price, and other benefits
The other telecom companies will have to spend heavily on spectrum to survive. We are confident about the future of Reliance Communications and its market position, Ambani told the shareholders of the company. We have all the spectrum we need for 2G, 3G and 4G services plus spectrum trading and sharing agreements with Reliance Jio, he added. We have accomplished a virtual merger between Reliance Communications and Reliance Jio, Ambani further said. He also expressed confidence that the company’s debt will be cut by 75 percent within a year. Recently, the company announced that it is looking to monetize its non-core assets. With this, the company plans to bring down the debt-to-EBIDTA ratio to about three in 18-24 months.
To achieve this target, the Anil Ambani-owned firm is planning to hive off its DTH business, sell stake in international operations at Reliance Globalcom and a possible divestment in its tower unit Reliance Infratel, among others. The company s net debt-to-EBITDA ratio currently is about 4.64. In general terms, debt-to-EBITDA ratio is the measure of the ability of a firm to pay off its debts and is a useful tool in assessing the creditworthiness of a company.