Rating agency Fitch expects RCom to gradually exit from the wireless voice business and significantly scale down its operations due to intense competition. It said in the report that the Anil Ambani-owned operator will ‘focus on offering 4G services as a mobile virtual network operator (MVNO) after selling its spectrum assets’. Shares of RCom closed at Rs 17, down 0.87%, on the BSE on Wednesday.

An MVNO does not have its own licensed spectrum or networking infrastructure. It buys bulk minutes from existing telcos and resells services under its brand name using the partner operators’ network, as per a business sharing agreement.

RCom plans to monetise spectrum assets in the 800MHz, 900MHz, 1800MHz and 2100MHz bands by sharing and trading with other Indian telcos, most likely Jio, owned by Reliance Industries, the report said.

The firm said on Monday that it has presented a fresh “zero write-off” plan to its lenders, under which banks could convert some of its debt and take a 51% stake in the telecom operator. Banks could then raise funds by selling its towers and spectrum to potential buyers, including Jio, and monetize real estate assets.

Of its Rs 45,000 crore debt, the joint lenders forum could convert Rs 7,000 crore of debt into equity; raise Rs 17,000 crore through sale of assets such as towers and spectrum and another Rs 10,000 crore via sale of real estate. Analysts at Fitch expect the lenders’ panel, led by State Bank of India, to convert debt into equity and bring in a strategic investor by end of 2017 who will take over telco’s management.

Fitch also expects the restructuring to transform RCom from an integrated telecom company to a business-to-business bandwidth services provider with three segments -- Global Cloud Exchange (GCX, an RCom subsidiary), enterprise and data centre business. ‘However, post-restructuring, RCom will not benefit from GCX's cash flows, which are largely ring-fenced under its $350 million (about Rs 2,259 crore) senior secured bond documents,’ said the report.

Post the sale of assets, the telco says it will be left with a secured loan of Rs 6,000 crore of debt in its books and another Rs 5,000 crore of unsecured loans. Two months ago, the operator had called off its merger with Aircel and said its tower deal with Canadian pension fund Brookfield, which was pegged at Rs 11,000 crore, may fetch a lower price now that the Aircel deal is off. However during Monday’s meet, Garg said that other interested parties could also bid for the tower assets.

RCom is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the SDR (strategic debt restructuring) process as per applicable RBI guidelines.