Aircel, India’s small mobile phone operator, files for bankruptcy

Aircel Goes Bankrupt

Aircel, Another giant in the Indian telecom industry with millions of mobile users has now filed for bankruptcy.

Aircel, the country’s 5th largest mobile network operator with around eighty-five million subscribers, filed for bankruptcy on 28th February 2018, the latest company in an increasingly tough competition now gave up.

The firm is actually owned by Malaysian communication group called MAXIS. They conveyed that “Aircel is facing troubled times in a financially stressed industry and few issues related to legal and regulatory challenges and also debt on the high level with increased loss cannot further continue” It said in a statement.

It also blamed “intense competition following the disruptive entry of a new player.”

That disruptive new entrant is Reliance Jio, the twenty billion dollar network founded by India’s richest man, Mr. Mukesh Ambani. Soon after launching in Sep 2016, Jio offered its customers free 4G for the first half year. The network raced to one hundred and sixty million subscribers by the end of the previous year.

Ambani big entry into the telecom industry with a major update on 4G network has made a tremendous penetration into the market and made competitors panic in the market. Rather forced few competitors to merge with jio but the major arms in the telecom industry in India, Vodafone patched up with the local competitor Idea Cellular network and Bharthi Airltel had tied up with Norways Telenor and giving a tough competition to Reliance JIO.

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Others left the market and quit the industry altogether, including Reliance Communications — the company owned by Ambani’s younger brother, Anil Ambani.

He sold Reliance Communications’ mobile business to Reliance Jio in Dec 2018, can be considered as the strategic sale and also it raised the share value of the reliance communication all of a sudden.

There was a plan to merge Aircel with Relaince communications but this actually called off due to some internal issues.

Now its time for the major players Vodafone, Bharthi Airtel and Reliance JIO to play the game in the indian mobile industry.


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