Reliance Communications (RCom), the Anil Ambani-led company today announced the completion of the planned sale of its media convergence nodes (MCNs) and related infrastructure assets, worth Rs 2,000 crore, to Mukesh Ambani-backed Reliance Jio Infocomm. RCom said the transaction entailed 248 nodes covering close to 5 million sq. Ft. of the area, used for hosting the telecom infrastructure, all of which now stands transferred to Jio, RCom said in a statement. "Reliance Communications Limited (RCom) today announced the completion of the sale of its MCNs and related infrastructure assets, worth Rs 2,000 crore, to Reliance Jio Infocomm," the RCom statement said.
RCom and Reliance Jio Announced a Wireless Spectrum Deal Last Year
Last year, the Anil Ambani-owned Reliance Communications signed a pact with Reliance Jio for sale of wireless spectrum, tower, fibre and MCN assets - the proceeds of which were to be used to reduce debt.
The deal announced in December 2017, packed in 122.4 MHz of 4G spectrum in the 800/900/1800/2100 MHz bands, over 43,000 towers, 1,78,000 kilometres of fibre and 248 media convergence nodes. The nodes' sale concluded today represents the initial tranche of the planned, larger deal.
RCom Went Through a Rough Phase Last Year
With the entry of Reliance Jio, small players like RCom struggled a lot in the industry. Initially, RCom announced a merger deal with Aircel to sustain in the hyper-competitive market, however, the merger didn't get through. Later on, RCom blamed the government for delaying the regulatory approvals required for its merger with Aircel.
Even after announcing its wireless assets sale to Reliance Jio, RCom faced several struggles as for how it would clear the Rs 25,000 crore debt sitting on its head. Earlier this month, Reliance Communications had reinstated bank guarantees worth Rs 774 crore with the telecom department ahead of the timeline set by the telecom tribunal, and had said that its Rs 25,000 crore asset sale plans are "on track".
Even telecom gear maker, Ericsson had dragged RCom to Supreme Court for the clearance of its deal dues.
With Inputs from PTI.