MUMBAI: Tower companies have started taking action against Reliance Communications for pending rentals, with most reneging on service level agreements (SLA) that mandate them to maintain the towers for over 99.5% of the time. They have even switched off towers where RCom is sole tenant and serviced other technical issues only when something similar was needed for other tenants on the tower. “If we shut the tower, Rcom will not have a revenue source to pay us.But we refuse to incur any further expense which uses our cash,” said a person close to developments. RCom has scrapped its merger proposal with Aircel and said its tower stake sale deal with Canada’s Brookfield will be reevaluated. We do need proactive policy in place, so that tower companies can continue to function for telecom service providers pending resolution of payment issues.

Source: Economic Times October 06, 2017 18:35 UTC