Top News

Reliance Communications to acquire MTS India

  • Billionaire
    Anil Ambani-led Reliance Communications has said it will take over Russian
    conglomerate Sistema’s Indian mobile telephony venture, which operates under
    the MTS brand.
  •  
  • While
    financial details of the deal were not immediately announced, RCom said Sistema
    Shyam Teleservices Ltd (SSTL) will hold a 10 percent equity stake in RCom as a

    • Billionaire
      Anil Ambani-led Reliance Communications has said it will take over Russian
      conglomerate Sistema’s Indian mobile telephony venture, which operates under
      the MTS brand.
    •  
    • While
      financial details of the deal were not immediately announced, RCom said Sistema
      Shyam Teleservices Ltd (SSTL) will hold a 10 percent equity stake in RCom as a
      result of the deal.
    •  
    • In addition,
      RCom will assume the liability to pay the government instalments for SSTL’s
      spectrum, amounting to Rs 392 crore per annum for the next 10 years.
    •  
    • “RCom
      will acquire approximately 9 million customers and approximately Rs 1,500 crore
      of annual revenues by virtue of the transaction,” the company said in a
      statement.
    •  
    • RCom will
      also acquire SSTL’s valuable and superior 800/850 MHz band spectrum, ideally
      suited for 4G LTE services, to complement its own unique nationwide footprint
      of minimum 5 MHz contiguous 800/850 MHz spectrum, aggregating 148.75 MHz.
    •  
    • This will
      extend the validity of RCom’s spectrum in 800/850 MHz band in 8 important
      circles by a period of 12 years from 2021 till 2033 (Delhi, Gujarat, Tamil
      Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal).
    •  
    • “Prior
      to closing of the transaction, SSTL intends to pay off its existing debt,”
      the statement said without giving details.

     

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close