Shutting down 2G biz and adopting a 4G strategy may not work for RCom

Shutting down 2G wireless business of Reliance Communications (RCom) will turn out a boon for other incumbent operators as most of its feature phone customers look likely to switch from the carrier.

According to analysts and industry watchers, RCom's 2G customers may not migrate to 4G as most are feature phone users with very low monthly spending and little willingness to invest in a 4G-ready smartphone.

In fact, going by a Goldman Sachs' report, RCom's average revenue per user (Arpu) of Rs 58 per month  for Q1FY18 is the lowest in the industry, over 50 per cent lower than the