Two Indian Mobile Networks to Merge
Published on: 1st Nov 2015
Note -- this news article is more than a year old.
Two of India's mobile networks are to merge, in a deal which will see the new network operator have nearly 120 million customers.
Reliance Communications has agreed to merge with Sistema Shyam Teleservices -- which trades under the Russian MTS brandname. Discussions between the two parties had been going on since June.
Following the merger, Sistema Shyam Teleservices will own a 10 percent stake in Reliance Communications.
Reliance Communications will absorb MTS India's 9 million customers, but also gain its radio spectrum assets, which are particularly suited to low-frequency LTE services.
RCom's 800/850Mhz spectrum in 8 circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal) will also be extended by a further 12 years until 2033.
Sistema Shyam Teleservices will pay down its entire outstanding debt ahead of the merger, the firms also announced.