Tata teleservices may be going to shutdown.
As according to the source the Tata Group informed the government on Friday that it plans to shut its wireless business, bringing an end to its 21-year-old phone services venture.
There chief financial officer Saurabh Agrawal and Tata Teleservices managing director N Srinath were among executives who met Department of Telecommunications (DoT) officials and discussed ways of surrendering or selling their existing spectrum holdings, some of which have been allocated administratively by the government and some of which have been bought through spectrum sales over the last few years. Tata Teleservices is the telecom unit of the Tata Group.
After the entry of Jio the Tata group company has been facing immense pressure over the years to retain subscribers and invest in operations amid ever-increasing competition.For the financial year ended March, Tata Teleservices reported a net loss of Rs 4,617 crore.
Tata Teleservices, which as per the telecom regulator has a 3.5% share of wireless customers with 42.09 million users as of July, has been making losses and currently has a debt of around Rs 30,000 crore, weighing down holding company Tata Sons’ financial performance. The company needs to give its users notice of 30 days before shutting services. A call made to its call centre revealed that the telco has already stopped taking on new users in several circles.
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