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.