Reliance Communications Merges with MTS India

Reliance Communications Merges with MTS India Image Credit: MTS

Anil Ambani-led Reliance Communications, today announced its merger with Sistema Shyam Teleservices (Sistema)'s wireless business, MTS India. As result of the merger, Sistema will acquire and hold a 10 percent stake in Reliance Communications. In addition, Reliance Communications will assume the liability to pay the Department of Telecom installments for Sistema's spectrum, amounting to Rs.392 crore per annum for the next 10 years, the company said in a statement.

The all stock deal will make Reliance the largest 800MHz 4G spectrum holder, a move that will boast its readiness to launch its 4G launch, that is expected to take place by the end of this year. It will also extend the validity of Reliance’s spectrum in 800 and 850 MHz band in 8 important circles by a period of 12 years from 2021 to 2033 in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP West and West Bengal, according to a statement by the operator.

Gurdeep Singh, President & Chief Executive Officer, Consumer Business, Reliance Communications
The combination of our wireless businesses, through the demerger of SSTL wireless business into RCOM for stock consideration, will generate significant capex and opex synergies for mutual benefit. 

Mikhail Shamolin, President and CEO of Sistema
We are confident that SSTL’s entry into the equity capital of RCOM as a strategic investor will strengthen the competitive position of the combined company and provide subscribers with superior experience by fast- tracking the growth of LTE technology in India.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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