Aircel plans to scale down operations in selected Circles

News / Telecom

Aircel plans to scale down operations in selected Circles

  • 2012-11-12 12:35:19
  • 1330
News / Telecom Aircel plans to scale down operations in selected Circles
One of India’s leading telecom player Aircel is cutting down its GSM mobile service operations in a minimum of 5service areas. Presently it operates in 22 out of that these 5 are likely to go which are Madhya Pradesh, Gujarat, Haryana, Rajasthan and Punjab. They are also going to scale down operations in Kerala and Karnataka Circles, said atop official working with Aircel. In the past 3 months, Aircel is that the second major operator to announce cutting down of operations after Uninor reduced operations in four services areas (currently has services in 9 service areas)

With this they're going to step by step stop all ICR tie ups with other operators as well as to stop supply in ICR cities. They’re going to stop all paper coupon charge and discontinue all STVs and GPRS services from these circles. There will not be any kind of promotional activities as well as tele-calling and products up sell from next month. Also they're going to stop all support to distributor including BDO and SPOC.

Aircel, that has more than 66 million customers and a pan-India 2G presences with its operations all 23 telecom circles .Aircel has 5.0% revenue market share. The company’s capitulation in 5 service areas highlights how difficult the operating environment is within the sector. There’s a view that the Indian mobile sector will support 5-6 players in the long run.

It will clearly affect the acquisitions in these circles as they're going to stop funding to these circles including sales acquisition costs (SAC). As per then they're taking this steps in order to cut back the operation prices and nullify the net loss which they're bearing from these circles. However, the spokesperson said that the corporate is not shutting down its operations in Madhya Pradesh.
Categories: Telecom

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