Anil Ambani-led Reliance Communications (RCom) on 2 November 2015 declared that it will take over Russian conglomerate Sistema Shyam Teleservices’ (SSTL) venture that operates under the brand name of MTS for a cashless deal valued at around 4500-5000 crore rupees.
The merger will bring 9 million customers and around 1500 crore rupees in revenues to RCom. It will also help RCom extend the validity of spectrum in 800/850 MHz band spectrum, ideally suited for 4G LTE services, in eight circles, including Delhi and Kolkata, by 12 years from 2021 till 2033.
As per the terms of merger, SSTL will acquire 10 percent equity in RCom. The Reliance Communications will assume the liability to pay instalments for SSTL’s spectrum, amounting to 392 crore rupees per annum, to the Department of Telecom (DoT) for the next 10 years.
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