Zoom Mobile restructures, seeks more funds

RELIANCE Telecommunications Limited, trading as Zoommobile, has said that it was re-structuring its operations and seeking recapitalisation to enable it deliver on its new robust data and application driven business model, adding that it will be returning to market soon as a better outfit for enhanced productivity.In a statement signed by its Managing Director and Chief Executive Officer, Mr. Edwin Moore Momife, the company noted that as the restructuring was on, it had continued discussions with a number of prospective investors both local and international.'The company requires adequate capital which will enable it to compete effectively in the very lucrative telecommunications market in Nigeria. The realisation of this goal requires that the company take appropriate medium term steps to reduce operational costs as it re-structures its business. This means that a number of existing staff have been disengaged until the process is complete,' it said.The statement further said that the staff that were still available for employment would be recalled and re-absorbed at the end of the process. It also assured that during this period existing customer of the company would continue to receive their services and customer support as before through the operational centre in Surulere, Lagos.'The management of the company will continue to maintain discussions with the regulator, other government agencies and creditors toward the resolution of outstanding issues. The company is confident that the capital re-structuring effort, which is at a very advanced stage, will be concluded shortly. This will enable the company to deliver on its new robust data and application driven business model,' it said.In March, the company announced a re-entry into the telecoms market in a grand style after disappearance from the scene for a long time.The telecoms company had been facing substantial challenge to its bottom line, plagued by decreasing subscriber base, economic uncertainty, huge interconnectivity debts and loss of confidence in the operator, among other challenges.
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