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GTL Infrastructure may recover Rs 20 billion from Aircel, RCOM and TTSL

January 05, 2018

Telecom towers company, GTL Infrastructure, hopes to recover Rs 20 billion in rental cancellation charges from Aircel, Reliance Communications (RCOM) and Tata Teleservices Limited (TTSL) due to  consolidation in the telecom industry. GTL Infrastructure intends to pursue all legal avenues to recover the funds owed to the company from all concerned operators. According to the company, the funds recovered will be used to pare the company’s debt.

The tower company, which is currently undergoing a strategic debt restructuring process, had estimated 56,000 tenancies in 2017-18, up from 50,845 in 2016-17. However, due to the ongoing consolidation in the sector, the company expects to touch only 47,000 tenancies in 2017-18 and 52,000 tenancies in 2018-19.

According to GTL, TTSL has given an exit notice for its tenancies instead of transferring them to Airtel. Further, RCOM's closure of its wireless operations led to a loss of 3,987 tenancies, while Aircel’s surrender of licenses in six telecom circles resulted in a loss of 1,994 tenancies for the company. Moreover, possibilities of downsizing by Aircel, may lead to a loss of additional 6,606 tenancies for GTL. Meanwhile, GTL expects to lose another 9,000-11,000 tenancies owing to consolidation issues over the next 12-18 months.

 
 

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