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RIL expansion targets could remain unmet

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CIOL Bureau
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MUMBAI: Reliance Infocomm's target to connect 5,100 towns by the end of this fiscal could remain unmet.



In two years of its operation, the company managed a presence in 1100 cities and towns and extending to 4000 new towns in a quarter is unlikely.

Informed sources point out that non-payment of dues have led to some vendors stopping equipment supply. The sources reveal that Reliance has payment dues of over Rs 300 crore to Lucent alone and that Lucent has stopped supplying MSC's (Mobile Switching Centres) to Reliance Infocomm since a few months. Lucent officials when contacted denied the development and stated that such outstanding amounts are usual in long-term supplier partnerships. The Lucent official also reaffirmed that the company is proud to be a partner of Reliance Infocomm.



While Reliance offiicials did not deny the development, they chose not to give their official comments on the matter.



Reliance Infocomm has been going through a rough patch recently: it has already been penalized by BSNL for more than Rs 300 crore, for illegal routing of calls and there is uncertainty about availability of fresh funds because of the feud between the Ambani brothers.

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