How did Anil Ambani's telecom company go bankrupt, once used to challenge Airtel, Idea, launched Rs 500 phone to....
Several companies of Anil Ambani were raided by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA), leading to several stories about Anil Ambani's legacy. Anil Ambani's Reliance Infocomm, later rebranded as Reliance Communications (RCom)—once stood as the telecom flagship of the Reliance empire.
In the beginning, Reliance Communications (RCom) embodied disruptive growth with slashing call rates, bundled handsets, and rapid expansion into India's underserved markets. However, within a decade, Anil Ambani's spiraled from market leader to bankruptcy. How did Reliance Infocomm grew so big?
Launched in the early 2000s, Reliance Infocomm rapidly grew under Anil Ambani's leadership after the 2005 split of Reliance Industries. The company pioneered CDMA services in India with the 'Monsoon Hungama' campaign, making mobile telephony accessible to lower-income segments. Riding high on investor enthusiasm, RCom's IPO in 2006 was oversubscribed dozens of times, allowing it to build one of the country's largest telecom networks.
Notably, Reliance Infocomm revolutionized the telecom market by offering CDMA mobile phones for Rs 501 under the 'Monsoon Hungama' plan in 2003, giving a tough competition to Idea and Bharti Airtel. How did Reliance Communications' downfall come?
Reliance Communications' downfall was driven by poor strategic choices, including sticking too long with outdated CDMA technology and entering the GSM space late. The launch of Reliance Jio by Mukesh Ambani worsened its decline. Mounting debt, failed deals, and rising losses led RCom to file for bankruptcy in 2019, marking the collapse of what was once a telecom giant. Anil Ambani's Reliance Group announces Rs 18000 crore investment plan
Anil Ambani's Reliance Group will focus on defence, power and clean energy sectors to chart the next phase of growth that will train resources on innovation and value creation, it said on Sunday.
Just as financial crime-fighting agency, Enforcement Directorate concluded searches at locations linked to the group as part of an investigation into alleged money laundering and siphoning of public funds, over 100 top leaders from its two listed firms — Reliance Infrastructure and Reliance Power — convened in Mumbai on Sunday to reaffirm their commitment to its ambitious growth roadmap.
(With inputs from agencies)
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