Posted April 06, 2019 06:48:07 Intercom Corporation is ending its partnership with Indian telecom operator Vodafone India and shutting down operations in the country, according to a report in The Economic Times.
The company announced the decision on Monday.
“Following a close review of the strategic landscape, Intercom is making the difficult decision to exit its strategic partnership with Vodacom India and end its operations in India,” the company said in a statement.
“The company is also terminating its acquisition of Reliance Communications in India, the parent of Indian telecom giant Vodacon, which is due to commence operations in July 2021.”
Intercom’s exit from India follows a year in which the company announced that it was shutting down all of its operations due to rising costs.
Intercom has said that its revenue is set to decline by 15% this year as it faces an expected rise in the cost of doing business and the lack of competition.
Vodacons CEO Ravi Raghavendra said that Intercom would be “committed to India and its customers” once the company closed its operations.
The shutdown of Intercom comes after Intercom bought Vodak Telecom for $15 billion earlier this year, in a deal that will give the company a bigger presence in the Indian market.
Voda Communications, which also owns a stake in Intercom, said that the deal with Intercom “will enable Voda to continue its expansion in India”.
Intercom did not respond to requests for comment.