Reliance Communications and Sistema held talks to form joint venture in India, no sales planned

By May 16th, 2015 AT 10:41 PM

Putting an end to the rumor that Reliance Communications is in talks with Sistema to buy its Indian wireless business, Sistema Chief Vladimir Yevtushenkov revealed that the talks held were about the possibility of forming a joint venture in India.

sistema chief

He said there are no plans to sell Sistema Shyam Teleservices, which is one of the smallest telecom players in India with less than one percent market share and nine million customers. “We have been talking to different people regarding business expansion. Honestly, there is nothing much to say,” Yevtushenkov said.

Along with Reliance Communications and Tata Teleservices, Sistema Shyam offers CDMA services in the country. The company scaled back its operations in 2013 when it had to buy new telecom permits, after the earlier permits were cancelled due to licensing scandal.

Reliance Communications is the market’s fourth biggest mobile phone carrier by customers, but it has strong competitions from Bharti Airtel, Vodafone and Idea Cellular. Reliance currently possess $6 billion debt and the plans to cut the debt by selling assets did not made the desired results.

India is the world’s second-largest cellular market after China, with 970 million mobile phone accounts. However, the market is highly competitive with over 10 players.

Source : Business Standard

1
Leave a Reply

avatar
Photo and Image Files
 
 
 
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
1 Comment authors
Viranch Damani Recent comment authors
newest oldest most voted
Viranch Damani
Viranch Damani

Frankly speaking I no longer believe in any M&A news
First there was a news of Aircel-Tata-MTS having a three way merger
Second a news of Jio acquiring Videocon
Third news of Jio acquiring Reliance
Foruth news of Uninor acquiring Tata
Fifth a news of Jio acquiring Tata
There even rumors of Idea buying Tata
None of these have turned out true as of yet.
Its best to wait N watch.

Recent Posts

Vodafone Idea Responds to Report of Google Eyeing a Stake in its Operations

Vodafone Idea on Friday said that there was “no proposal” that was being considered by its board as it issued...

Xiaomi Mi Box 4K Review: The Best Accessory for Your TV

Smart TVs are becoming a common thing in almost every household now. But still, there are a large number of...

OnePlus 7 and 7T Users in India to Receive OxygenOS 10.3.3 Update

OnePlus has been on a roll announcing updates for its devices. The OnePlus 5T is going get the Android 10...