RCom Completes MTS India Merger Transaction, to Acquire 30Mhz Spectrum in 800 850 MHz Band

Anil Ambani-led Reliance Communications on Tuesday said that it has completed the Sistema Shyam Teleservices (SSTL) merger, having received all important approvals, including the final approval from the telecom department.

RCom said that its Board of directors on Tuesday took on record the demerger of Sistema Shyam Teleservices Ltd’s telecom business in India, run under the brand name MTS, with the company.

MTS-Logo

The Board also approved the issuance of shares to the tune of 10% of the equity shareholding of Reliance Communications Limited, to SSTL, as part of the agreement between the two companies.

Under the terms of the agreement between RCOM and Sistema, RCom will acquire the telecommunications business of SSTL including its licenses. In addition, Rcom will acquire 30 MHz of the most valuable and superior 800 / 850 MHz band spectrum, ideally suited for 4G LTE services and other evolving technologies, to complement its own unique nationwide footprint.

“This will result in extension of the validity of RCom’s spectrum portfolio in the 800 / 850 MHz band in eight important Circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal) by a period of 12 years—from 2021 to 2033,” the telco said.

As a result of the demerger, SSTL will receive a 10% equity stake in the fully diluted equity share capital of RCom. In addition, the Anil Ambani-led telco will assume the liability to pay the DoT, instalments for SSTL’s spectrum, amounting to Rs 390 crore per annum for the next 8 years.

RCom on Monday announced a comprehensive debt resolution plan to its domestic and foreign Lenders. Under the plan, the telco would pay off up to Rs 17,000 crore of its debt, out of the proceeds of monetization of Spectrum, Towers and Fiber and MCN (Media Convergence Nodes) assets. RCom will pay additional Rs 10,000 crore of its debt, out of the proceeds of sales and commercial development of DAKC and other prime real estate assets across 8-metros.

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54 Comments on "RCom Completes MTS India Merger Transaction, to Acquire 30Mhz Spectrum in 800 850 MHz Band"

 

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Rinu
November 2, 2017 10:11 am 10:11 AM

The telecom regulator has ordered Reliance Communications and its unit Reliance Telecom to immediately issue and communicate unique porting codes required to move to other carriers through MNP via SMS to users in Shillong and Kerala, areas where 2G services have been shut.

Aakash Hinduja
November 2, 2017 5:01 pm 5:01 PM

When I sms PORT space mobile number to 1900 after 5hrs they reply service Unavailable, Inspite of having balance and they deducted my balance for port sms and didnt issued port code in Mumbai.

Rinu
November 2, 2017 10:28 pm 10:28 PM

Reliance is a fraud company. They will loot us till the last. Let’s hope that TRAI will provide a solution.

Bsnl lover
November 1, 2017 3:14 pm 3:14 PM

Off topic
Does BSNL send any SMS while porting to BSNL.
Plz tell

sandip
November 2, 2017 2:37 am 2:37 AM
No Recently, I have ported 3 of My Idea nos. to BSNL. As my grandparents & my mother still use 2G handset,One connection was done through E-KYC & another 2 through form submission. The process is smooth takes 7 days to complete . Only complain we need to visit the telephone exchange again to ask them to recharge the FRC after porting , Even though the take the total cost before hand, They took Rs 10 for sim. Rs 110 for Full Talktime recharge & Rs 49 for plan voucher, But they only have micro sim, nano sim is still… Read more »
Aakash Hinduja
November 1, 2017 4:32 pm 4:32 PM

No BSNL and MTNL dont send porting request received by them. If you have given request by EKYC dont worry it will be under process.

Bsnl lover
November 2, 2017 11:04 am 11:04 AM

I sent docs hard copy to exchange not ekyc

Bsnl lover
November 2, 2017 11:03 am 11:03 AM

Thanks for info but I sent documents hard copy not ekyc..

sandip
November 2, 2017 3:04 pm 3:04 PM
Only issue , if you have done through submission of form, you will need to do the Aadhar link through finger print again , even though they take Aadhar card copy as document for new connection , sim replacement / upgradation , MNP. The software for ekyc which they have is loaded in their personal phones n most of the time it is non working or it is very slow showing connection time out My luck was great , I got a sympathetic lady besides the counter she was able to link all my three connection after 90 mins of… Read more »
Bsnl lover
November 2, 2017 5:10 pm 5:10 PM

Yes ekyc doesn’t work here
Up west circle

prashant fauzadar
November 1, 2017 8:05 am 8:05 AM

sinking ship

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