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Two Indian Mobile Networks to Merge

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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.

 

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Tags: mts  reliance communications  India