Reliance Communications shares slide over 3% on wireless business closure reports

Shares of Reliance Communications fell by over 3 per cent today following a buzz that the debt-ridden company is planning to shut down its wireless telephony business.

The stock went down by 3.24 per cent to settle at Rs 16.45 on the BSE. During the day, it tanked 5 per cent to Rs 16.15.

On the NSE, shares of the company lost 2.94 per cent to close at Rs 16.45.

Reliance Communications plans to shut down its loss-making wireless telephony business by November 30 and concentrate only on 4G Internet services, according to sources.

"As already announced on October 1, 2017, RCom has decided to adopt a 4G-focused strategy for profitable growth of its wireless business. Accordingly, RCom will be optimising its 2G and 3G footprint, and related infrastructure and human resources, with effect from November 30, 2017," the company said in a statement.

RCom said its "4G-led strategy will be executed, as at present, on the back of capital-light access to India s most extensive 4G mobile network, through already operational spectrum-sharing and ICR arrangements with Reliance Jio".