New Delhi: The Department of Telecom (DoT) has cleared the merger of Reliance Communication (RCOM) with Sistema Shyam Teleservices Limited (SSTL).
Sistema Shyam Teleservices Limited operates under MTS brand in India.
Under the deal, all wireless business assets of SSTL will come under RCom. However, brand MTS will continue to operate.
SSTL will gets 10 percent stake in RCom as per the terms of the deal.
With this, RCOM will acquire approximately 2 million customers and additional annual revenues of around Rs 700 crore.
In addition, RCOM will acquire 30 MHz of the most valuable and superior 800/850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint.
This will result in extension of the validity of RCOM`s spectrum portfolio in the 800/850 MHz band in eight important Circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal) by a period of 12 years -- from 2021 to 2033, the statement said.
The closure of the transaction is expected by the first week of November 2017.
With Agency Inputs
