acmedigitals
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Anil Ambani's RCom 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. This was officially conveyed to the press by Reliance Communications (RCom) CEO (Consumer Business) Gurdeep Singh said during an investors call on June 3.
RCom plans to sell assets to try and reduce its debt-to-EBIDTA ratio to about 3 (currently 4.64) in 18 to 24 months. As on 31 March 2015, RCom had a net debt of Rs. 36,725.7 Crore.
RCom had in fact declared several years ago that it would like to sell its DTH business. However, there seem to be no takers. Technical issues make it impossible to merge the use of STBs and DTH satellite transponders between 2 DTH platforms. Also, based on DTH ARPUs and subscriber counts, not more that 3 (out of 6) Indian DTH platforms can turn a profit, even after factoring in the projected increase in subscribers over the next 5 years. It seems inevitable that 2 to 3 Indian DTH platforms will have to shut down.
RCom plans to sell assets to try and reduce its debt-to-EBIDTA ratio to about 3 (currently 4.64) in 18 to 24 months. As on 31 March 2015, RCom had a net debt of Rs. 36,725.7 Crore.
RCom had in fact declared several years ago that it would like to sell its DTH business. However, there seem to be no takers. Technical issues make it impossible to merge the use of STBs and DTH satellite transponders between 2 DTH platforms. Also, based on DTH ARPUs and subscriber counts, not more that 3 (out of 6) Indian DTH platforms can turn a profit, even after factoring in the projected increase in subscribers over the next 5 years. It seems inevitable that 2 to 3 Indian DTH platforms will have to shut down.
:shy
