Reliance Jio Confirmed to Acquire Wireless Infrastructure of Reliance Communications

As it was rumoured earlier, Reliance Jio officially announced that it’s acquiring the wireless infrastructure of Reliance Communications (RCom). The subsidiary of Reliance Industries Limited (RIL) today announced the signing of a definitive agreement for the acquisition of specified assets of RCom and its affiliates. The monetisation process of assets will be mandated by SBI Capital Markets Limited.

rcom-reliance-jio-tower-assts

“An asset monetisation process for RCOM assets was mandated by the lenders of RCOM, who appointed SBI Capital Markets Limited to run the process. The process is supervised by an independent group of distinguished industry experts. RJIL emerged as the successful bidder in the two-stage bidding process,” said Jio in a media statement.

As a result of the agreement, Reliance Jio or its nominees will acquire assets of RCom and its nominees under four categories- Towers, Optic Fiber Cable Network (OFC), Spectrum and Media Convergence Nodes (MCN).

“These assets are strategic in nature and are expected to contribute significantly to the large-scale roll-out of wireless and Fiber to Home and Enterprise services by Reliance Jio,” said the company.

The Mukesh Ambani-led telco also confirmed that the “acquisition is subject to receipt of requisite approvals from Governmental and regulatory authorities, consents from all lenders, the release of all encumbrances on the said assets and other conditions precedent. The consideration is payable at completion and is subject to adjustments as specified in the agreement.”

Both the parties are bound by confidentiality obligations and will make further disclosure at the appropriate time. Reliance Jio is being advised by Goldman Sachs, Citigroup Global Markets, JM Financial Private Limited, Davis Polk & Wardwell LLP, Cyril Amarchand Mangaldas, Khaitan & Co and Ernst & Young on this transaction.

In a recent report, it was stated that Reliance Jio emerged as the front-runner to acquire the assets of RCom in the 850 MHz and 2100 MHz band. It was also said that other leading telecom operators Bharti Airtel, Vodafone India, and Idea Cellular also shown interest in RCom’s spectrum in the 900 MHz band.

Jio, in the press statement, did not reveal the valuation of the deal. However, the recent report said that the deal is valued at about Rs 19,000 crore for the remainder of the licence period. Having said that, RCom has 850 MHz spectrum in all 22 circles, 2100 MHz spectrum in 13 circles and 900 MHz in 2 circles.

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141 Comments on "Reliance Jio Confirmed to Acquire Wireless Infrastructure of Reliance Communications"

 

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Adil Wadia
December 31, 2017 12:17 am 12:17 AM
Jio needs 10 Mhz chunks in Band 5 and Band 3 nationwide. When that happens Jio will be usable like the AVOID networks. At this moment Jio is struggling because they have 5 Mhz chunks in Band 3 and 5 and are purposefully keeping the broadcasting strength powered down to avoid congestion on these bands. And Jio should not add Band 1 to their portfolio. The devices are already heating up because they are constantly switching bands affecting speeds and latency both. If Jio goes 10 Mhz on Band 3 nationwide then locking your device to that band will be… Read more »
Priyansh Singh
December 29, 2017 7:18 pm 7:18 PM
Off Topic: How to get Port Code in RCom (UP West-GSM)? There is No 3G in my Area. My SIM is 2G one and it is Latching onto Idea Network. I’m not able to initiate or receive Calls. Calls to Customer Care aren’t Connecting too. Idea sent me text to Port IN into their Network. But after Sending Porting Message 1901 says “Unable to Connect to Database” Can anybody Help me I’ve just 2 days to Submit Port Out Request. 31st December is Approaching really Fast. TT Readers and Admin please Guide me how to do this Task. PS: I… Read more »
digitized
December 30, 2017 11:12 am 11:12 AM

Try on Airtel network or keep trying on both. You may also get in touch with airtel or idea stores or customer care. You can contact customer care from some friend or relative’s airtel/idea number. Best of luck!

Priyansh Singh
December 30, 2017 2:20 pm 2:20 PM

Tried on AirTel but isn’t Working. I’ll definitely contact their Customer Care and see what can happen. Thank You Mate for the Information.

SS(Shivang Singh)
December 30, 2017 9:59 am 9:59 AM

I too generated my UPC code after being latched onto Airtel but now there is some problem on RCOM’s side and no operator is able to fetch the UPC code. I suggest you to wait for few days else pray the problem gets resolved. However, why did it take so long for you to think of porting your number, you must remember at least that its RCOM.

Priyansh Singh
December 31, 2017 1:01 am 1:01 AM
Tried with AirTel and Idea Stores today. Said the Same Thing that after 14th Dec they can’t get UPC from RCom. Moreover, I had the SIM but the Registration on the Network Failed (I think due to non-usage of around 90 days). I tried for issuing a Duplicate SIM but in my local area no one was giving RCom SIM earlier as there were no Partner Retailers and now stating “Company Band ho gayi”. After trying a lot, I went and looked up in the State Capital. Searching all major stores, all shut shops of RCom, one Retailer finally gave… Read more »
Ayan
December 29, 2017 11:05 pm 11:05 PM

I am not sure about that but as per my experience with airtel(new sim) you can not send any sms from new sim for few days. You should have generate the upc before getting duplicate sim.

Priyansh Singh
December 30, 2017 2:08 pm 2:08 PM

I too Think that the Restriction is for New Connections and not on the Connections Already on the Network. After 90 days the Subscriber can Freely Switch to Other Network.

digitized
December 30, 2017 11:09 am 11:09 AM

No. You’re wrong. You cannot generate UPC from new connection or after MNP for 90 days. For a duplicate/reissued SIM on same network this does NOT apply. You can immediately get UPC.

Sudarshan
December 29, 2017 10:27 am 10:27 AM

Mukesh is trying to save Reliance name here. Spectrum purchase is completely illogical

1. Many circles spectrum CAP will be breached for 800Mhz
2. 900 Mhz most of RCOM spectrum is non liberal and of no use to Jio
3. 1800 Mhz in mostly non lineral and again Jio cant use it fully
4. 2100 of RCOM is liberal, but fragmented holding by Jio across different bands is bad from network optimisation view point

Priyansh Singh
December 29, 2017 7:05 pm 7:05 PM

One of the Richest Person couldn’t see his Fathers Name being sold to some Chinese Lenders. I think Nostalgia hitted him so Hard that he stretched his arms to younger Brother just for DhiruBhai Ambani Knowledge City. DAKC was once a Great Asset to RIL (whole Group). They made Navi Mumbai what is it Today. It is Natural for Him to save his Fathers Name. I appreciate it.

Sunny | Lucknow
December 29, 2017 10:55 pm 10:55 PM

Correct. We’ve seen Mukesh Ambani getting emotional many a times talking about his father.

Aircel the no.1 network of India
December 29, 2017 3:40 pm 3:40 PM

You know nothing, all spectrum of Rcom from 2100mhz, 900 mhz band are totally liberalised, only most of the 1800 mhz is non liberalised, you can check TT’S spectrum data sheet. Also I don’t care because jio’s network is useless.

thilak
December 29, 2017 9:30 pm 9:30 PM

paid agent ,please stop

Fazal
December 29, 2017 3:12 pm 3:12 PM
Aircel made to sell spectrum to Rcom into thinking RCOM+aircel+Sistema will be number 2 player after Avoid, Sistema fooled into thinking they will get higher market share by collaborating with Rcom, & finally Rcom shutting down after finishing off 2 companies presence, i.e. Spectrum of Aircel & Valuable cdma competitor to GSM networks & precious 800Mhz spectrum which got robbed by Anil, was clearly a ploy by big bro Mukesh. Now Mukesh will buy depreciated asset values h/w, spectrum etc since Rcom is out of business and own 3 operators spectrum & customers by paying very little money when he… Read more »
Airtel User
December 29, 2017 11:39 pm 11:39 PM
You are right when you see the story from the way you want to see it. We see it in a way where Hi speed internet access is available to every indian at very affordable prices unlike 295INR/GB before Jio. Now coming to your last sentence I don’t think it’s true. Previously ARPU(average among wireless users) was below 60-70 INR now its above 80 INR rising every month very soon it will hit 100 INR !! This will open up new jobs in the market for sure. Problem is that Avoid never wanted there investors to suffer also it never… Read more »
thilak
December 29, 2017 9:33 pm 9:33 PM

foolish analyze

prit
December 29, 2017 9:08 pm 9:08 PM

The thing is Aircel’s deal with RCom didn’t even complete. Both were expecting some cash infusion, which never materialised and hence the deal got broken.

Raj
December 29, 2017 8:00 pm 8:00 PM

Right brother

tri_vis
December 29, 2017 6:00 pm 6:00 PM

What a joke?? Mukesh kills Golden egg , he is selfish.
Really come out from illusion. If Jio is not here, u r still paying Rs. 250 or 300 per GB to Avoid. And don’t think users are happy for mere 100 rs benefits.
Think of those 1.2 billion people’s saving by JIO’s entry.

And Golden egg for whom?? Looter AVoid.

Hela
December 29, 2017 5:37 pm 5:37 PM

+1 Fazal, specially you’re last sentence

Love Airtel
December 29, 2017 4:26 pm 4:26 PM

Well said.

Kunal
December 29, 2017 1:53 pm 1:53 PM
900 band is liberalised as purchased two years back through auction in two circles of mp & i guess hp by rcom . So jio can deploy it for 4g with out any cost. Spectrum cap limit to be increased or removed , as market conditions have changed . Only 4 big players to stay . Government wants to sell spectrum , wants money to meet fiscal deficit & hence has no option but to increase limit. Already spectrum holding limits in a band are restricting indian telcos to provide quality service. Both jio & voda/idea will suffer if they… Read more »
December 29, 2017 12:08 pm 12:08 PM

Your second point is incorrect, Rcom has 900 MHz spectrum only in MP and HP circles, both of which is fully liberalised.
As for the third point, there is no way for jio to acquire any spectrum from Rcom unless it is liberalised, so Rcom will have to either pay the government for liberalisation or will have to surrender that spectrum, so chances are they will go for the first option.

airtel and Jio user
December 29, 2017 7:32 pm 7:32 PM

Email what about tata teleservices non liberalised spectrum airtel can acquired that or not. Or tata tele have to liberalised .

December 29, 2017 11:08 pm 11:08 PM

When one company buys or acquires another company as a whole then in that case they get hold of all its assets in ‘as is where is’ condition, so Airtel will get access Tata’s liberalised as well as non liberalised spectrum holding.
If Airtel was just specifically buying spectrum assets from Tata without buying out its total telecom business like Jio is doing with Rcom then they would have to pay for liberalisation or surrender non liberalised spectrum after shutting down of services by Tata.

airtel and Jio user
December 30, 2017 9:32 am 9:32 AM

Thanks Esmail

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