Reliance Communication says merger with Aircel has lapsed; initiates alternate plan to cut debt

Key highlights:

• Reliance Communications at its Board of Directors of meeting considered alternate plans for debt reduction
• It further said that merger between Reliance Communication and Aircel has lapsed
• It will optimisation of its spectrum portfolio and adoption of a 4G focused mobile strategy

Reliance Communications at its Board of Directors of meeting held on Sunday, reviewed the ongoing strategic transformation programme, and considered alternate plans for debt reduction. Part of its alternative plan is to monetise airwaves through sharing and trading of its spectrum. It further said that merger between Reliance Communication and Aircel has lapsed.

The Board decided that Reliance Communication will evaluate an alternate plan for its mobile business, through optimisation of its spectrum portfolio and adoption of a 4G focused mobile strategy.

The company said that it already has the unique advantage of capital light access to Reliance Jio’s nationwide 4G mobile network through spectrum sharing and ICR Agreements.

“The combination of the mobile business of Sistema Shyam Teleservices Ltd (SSTL) into RCOM is also expected to be completed this month. The addition of SSTL's valuable spectrum holdings in the 800-850 MHz band will strengthen RCOM's spectrum portfolio by 30 Mhz, and extend the Company’s spectrum validity period in 8 important circles in the country till the year 2033 ie for another 16 years,” said the company in a statement filed on NSE.

Reliance Communication receives shareholder approval to demerge wireless business with Aircel