Reliance Jio Emerged as Front-Runner to Acquire Spectrum, Tower Assets of RCom: Reports

Mukesh Ambani-led 4G entrant Reliance Jio Infocomm has reportedly emerged the front-runner to acquire the assets of Anil Ambani-led Reliance Communications (RCom), including the ailing telco’s spectrum assets in the 850 MHz and 2100 MHz band. Bharti Airtel and Vodafone have already shown interest in RCom’s spectrum in the 900 MHz band.

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“RJio is leading the talks to acquire all assets RCom intends to sell, while a number of Private Equity (PE) firms and other strategic investors are also in the fray. The company is also in talks with foreign lenders for co-development of its Dhirubhai Ambani Knowledge City (DAKC) campus in Navi Mumbai,” a source familiar with the matter told BusinessLine.

The report said that RCom’s spectrum, which Jio is eyeing, will be valued at about Rs 19,000 crore for the remainder of the licence period. Jio is also in advanced stages of discussions to acquire RCom’s telecom tower portfolio, along with optic fibre network, it added.

The Anil Ambani-led telco has 850 MHz spectrum in all 22 circles, 2100 MHz spectrum in 13 circles and 900 MHz in 2 circles.

According to a separate The Hindu story, the joint lenders forum (JLF) met in Mumbai on Thursday and discussed the sale of assets of RCom and a proposal to convert RCom’s debt into equity. The JLF is still evaluating them and plans to convert a majority of debt into equity.

Previously, various reports said that Canadian pension fund Brookfield, and a number of private equity firms have also shown interest in RCom’s assets.

Reliance Communications has recently announced that it’s shutting down the business in the country for not able to compete with 4G players such as Reliance Jio, Airtel, and Vodafone.

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18 Comments on "Reliance Jio Emerged as Front-Runner to Acquire Spectrum, Tower Assets of RCom: Reports"

 

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adil wadia
December 25, 2017 10:19 am 10:19 AM
Only the Band 5 Spectrum and Band 3 will interest Jio. Band 3 from Aircel makes more sense as the validity is longer. And given that there is still lot of suspense on the quantum of spectrum that will be offered in the next auction, buying a ready asset with defined visibility on tenure makes sense for Jio. If Aircel spectrum is readily available without legal challenges Jio insulates itself for coming nine years to replace the spectrum in Band 3 with a 20 year license. And Jio can buy additional Band 3 spectrum without violating the caps in spectrum… Read more »
Kiran Fernandes | Mumbai
December 23, 2017 11:32 am 11:32 AM

Why’s Jio not bothered to increase the spectrum in the 1800MHz band? Jio seriously needs 10MHz block on 1800MHz pan India because the speeds on that band is horribly slow. 850MHz too needs 10MHz pan India.

KANAGADEEPAN N, Sivakasi (TN)
December 23, 2017 8:07 am 8:07 AM
I can agree that Jio is buying almost all of RCom’s 850 MHz, even 1800MHz in few circles. But why they will buy 2100MHz band from them? What is the use? They don’t have PAN-INDIA band 1 spectrum and NOT easy to fill the gaps via auctions as well, as for eg: only single 5MHz is available in UP(E) & TN. Further there is also a rumor that BSNL is going to launch 4G on band 1. If Jio buys Band 1 spectrum for 4G, then they will have filled the possible 5 CA limitation (2 for Band 40, 1… Read more »
Hari
December 23, 2017 9:00 am 9:00 AM

BSNL is a rumour network. They do lots of rumour. Then do nothing. So forget BSNL 4G. They will wait for pan India 5G launch by Jio, Airtel, etc. Then they will launch 4G pan India.

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