Reliance Communications’ Cup of Woes

This WJS's article is about a company in India called Reliance Communications, lately this company is having lots of problems, such as: numerous, large debts and customer problems.

This is because a top government auditor accused the company of involvement in the 2G scam.

In a report, Reliance Communications was again accused by the government of violating the country's telecommunication licensing rules.

the second- largest mobile phone operator was also accused by receiving unfairly favored treatment.

After all those accusations the company rejected and denied all of them.

This issue is troubling to investors and customer.

This makes me think that this company has 177 million wireless users and still cant get rid of their debts. What would this company do when it begins to lose their customers and investors?

Would it continue to be the second- largest mobile phone operator?

I think if this issue get worsens Reliance Communications may lose much of its clientele, this can affect both the company and the customers.

http://blogs.wsj.com/indiarealtime/2010/11/18/reliance-communications’-cup-of-woes/?KEYWORDS=telecommunication

- Sapir