Adithya Vikram
Banned
- Joined
- 13 Sep 2013
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NEW DELHI: Reliance Telecom Ltd, a wholly-owned unit of Reliance Communications, will demerge its operations in five circles back into RCom which will allow customers to avail seamless 3G and 4G services, as per a board approval Friday.
The move is also aimed at consolidating all of RCom's wireless business under one entity to be demerged at a later date and merged with Aircel, as per the ongoing discussions between the promoters of both parties.
RCom told the stock exchanges Friday that its subsidiary will demerge the circles of Bihar (including Jharkhand), Himachal Pradesh, Madhya Pradesh (including Chhattisgarh), Orissa and West Bengal, plus assets and liabilities.
"The Company will benefit in maximization of synergies in operational process, logistics alignment leading to economies of scale and enhanced customer experience," RCom said in a note to the exchanges.
By combining 3G and 4G / LTE network resources and platforms under single license per service area, customers will get seamless services, while the company will complete its compliance requirements under applicable regulations.
RCom and promoters of Aircel are set to ink a "binding definitive" pact to merge their wireless businesses, which would create a strong No. 4 telco through India's first such pan-India deal. The agreement is expected to be signed in around two weeks, while the deal is expected to be completed by the end of the year.
In the process, RCom will demerge its wireless business and merge it with the existing unlisted Aircel, with promoters of both sides owning 50% each in the new entity.
RCom's subsidiary RTL, holds unified license in seven circles, including Assam and North East, besides the five circles mentioned earlier. It also holds Unified Access Service License (UASL) in Kolkata. Assam, Northeast and Kolkata have previously been demerged from RTL and merged into RCom.
RTL has a turnover of Rs 2.075 crore, which makes up 9.56% of RCom's turnover, as of year ended March 2016.
Source:-
Board okays demerger of Reliance Telecom's circles into Reliance Communications - The Economic Times
The move is also aimed at consolidating all of RCom's wireless business under one entity to be demerged at a later date and merged with Aircel, as per the ongoing discussions between the promoters of both parties.
RCom told the stock exchanges Friday that its subsidiary will demerge the circles of Bihar (including Jharkhand), Himachal Pradesh, Madhya Pradesh (including Chhattisgarh), Orissa and West Bengal, plus assets and liabilities.
"The Company will benefit in maximization of synergies in operational process, logistics alignment leading to economies of scale and enhanced customer experience," RCom said in a note to the exchanges.
By combining 3G and 4G / LTE network resources and platforms under single license per service area, customers will get seamless services, while the company will complete its compliance requirements under applicable regulations.
RCom and promoters of Aircel are set to ink a "binding definitive" pact to merge their wireless businesses, which would create a strong No. 4 telco through India's first such pan-India deal. The agreement is expected to be signed in around two weeks, while the deal is expected to be completed by the end of the year.
In the process, RCom will demerge its wireless business and merge it with the existing unlisted Aircel, with promoters of both sides owning 50% each in the new entity.
RCom's subsidiary RTL, holds unified license in seven circles, including Assam and North East, besides the five circles mentioned earlier. It also holds Unified Access Service License (UASL) in Kolkata. Assam, Northeast and Kolkata have previously been demerged from RTL and merged into RCom.
RTL has a turnover of Rs 2.075 crore, which makes up 9.56% of RCom's turnover, as of year ended March 2016.
Source:-
Board okays demerger of Reliance Telecom's circles into Reliance Communications - The Economic Times
