Huge debt: A file picture shows a taxi driving past a Reliance Communications office building in Kolkata. Years of over-spending are catching up with the company, which is struggling under a mountain of debt. — Reuters
HONG KONG: Bonds sold by Reliance Communications Ltd, the Indian mobile phone operator controlled by billionaire Anil Ambani, plunged to a record low after the company missed an interest payment.
That marked the firm’s first failure to pay a coupon on a note in the US currency, as it battles for survival amid a shakeout in the world’s second-largest telecom market. With India’s larger mobile players vying for market share, intensifying price competition has driven down earnings at Reliance Communications and other smaller carriers. Amid a wave of industry consolidation, the company’s plan to merge with rival Aircel Ltd collapsed.
Limited time offer:
Just RM5 per month.
