Reliance Communications has been suffering recently, but perhaps there will some comfort in the knowledge Aircel has been missing its debt repayments as well.
According to Care Ratings, the company missed a debt repayment and has therefore been downgraded.
Few will be surprised by the news Aircel is struggling to compete, but the risk of the Indian telecom market getting smaller is becoming quite real.
“The company has delayed in repayment of interest on its debt obligations on account of its weak liquidity position as a result of its continuing weak operational performance in the hyper competitive telecom sector,” Care Ratings said in a statement.
Aircel has been under pressure in recent months, primarily due to the entrance of Jio and the race to the bottom which has been caused by the disruptive pricing model.
Funnily enough, since the introduction of Jio, Aircel has actually increased the number of subscribers it commands, though its share of the market has gone down.