Jithin91
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Telecom department approves RCom-MTS merger, to be closed in 2 weeks
Post merger, RCom would pay Rs 400 crore a year, starting February 2016, for next ten years, for spectrum that MTS purchased in 2013.
The telecom department has approved the merger of Reliance Communications and Sistema Shyam Telecom Limited (SSTL), which operates the MTS brand in nine circles in India, two sources aware of the development said.
The deal, which is valued at Rs 5,000 crore, would provide RCom with 3.75 MHz of highly valuable spectrum in 850 MHZ band in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, UP (West), Kolkata, West Bengal and Rajasthan. SSTL has spectrum holdings in these circles, except for Rajasthan, valid till FY 2033, and therefore would reduce the need for RCom to buy airwaves in future auctions. RCom's CDMA spectrum in eight circles is set to expire in 2021.
ET
Post merger, RCom would pay Rs 400 crore a year, starting February 2016, for next ten years, for spectrum that MTS purchased in 2013.
The telecom department has approved the merger of Reliance Communications and Sistema Shyam Telecom Limited (SSTL), which operates the MTS brand in nine circles in India, two sources aware of the development said.
The deal, which is valued at Rs 5,000 crore, would provide RCom with 3.75 MHz of highly valuable spectrum in 850 MHZ band in Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, UP (West), Kolkata, West Bengal and Rajasthan. SSTL has spectrum holdings in these circles, except for Rajasthan, valid till FY 2033, and therefore would reduce the need for RCom to buy airwaves in future auctions. RCom's CDMA spectrum in eight circles is set to expire in 2021.
ET
