Monday, 22 April 2019

Ambani avoids jail as RCom pays $77m to Ericsson

By Chris Kelly, Total Telecom
Monday 18 March 19

Reliance Communications will file for insolvency, the company confirmed last month

Reliance Communications' chairman Anil Ambani has avoided a custodial sentence as his company completed the payment of $77m to Swedish network equipment provider Ericsson.  The money was due to have been paid by the end of 2018 and Ambani was given until the 20th March 2019 to make payment of the outstanding dues or face imprisonment for contempt of court…

Reliance Communications' chairman Anil Ambani has avoided a custodial sentence as his company completed the payment of $77m to Swedish network equipment provider Ericsson. 

The money was due to have been paid by the end of 2018 and Ambani was given until the 20th March 2019 to make payment of the outstanding dues or face imprisonment for contempt of court. 

In January of this year, Ericsson India petitioned the Indian Supreme Court with a contempt of court order, in an attempt to force payment of the outstanding monies. Had Ambani failed to make the subsequent payment, he would have faced a sentence of up to three months in an Indian jail. 

In February, Ambani confirmed that RCom would be filing for insolvency as its levels of debt reached unsustainable levels. 

“The Board believes this course of action will be in the best interests of all stakeholders, ensuring comprehensive debt resolution in a final, transparent and time bound manner within the prescribed 270 days,” a statement from RCom read.

RCom has been involved in a brutal price war with its competitors, chiefly led by Reliance Jio, which has reduced profit margins to almost zero. India remains one of the most competitive telecoms markets in the world.  

Also in the news:

Jio calls on govt to incentivise roll out of gigabit India

Airtel and Vodafone Idea mull fibre JV

India's fastest network revealed

Since you're here...

...the Telecoms industry is characterised by constant change and evolution. That's why it's crucial for telecoms professionals to keep up-to-date with what is happening. Join 35,000+ of your peers and sign up to our free newsletter service today, to be in the know about what is going on. PLUS, as a member you can submit your own press releases!

See all membership options

Please enable JavaScript to view the comments powered by Disqus.

Newsletter signup

Quickly get on board and up to date with the telecoms industry