New Delhi: Reliance Communications has completed the merger of Sistema Shyam Teleservices, which operates under MTS brand, the company said on Tuesday.
The Russian conglomerate Sistema controlled SSTL will get 10 percent stake in RCom as part of the deal.
The completion of the merger process will give a breather to RCom which is planning to shut down its loss-making wireless 2G and 3G telephony business by November 30 and concentrate only on 4G internet services.
Under the terms of the agreement between RCOM and Sistema, RCOM will acquire the telecommunications business of SSTL including its licenses.
In addition, RCOM will acquire 30 MHz of the most valuable and superior 800/850 MHz band spectrum, ideally suited for 4G LTE services and other evolving technologies, to complement its own unique nationwide footprint.
This will result in extension of the validity of RCOM`s spectrum portfolio in the 800/850 MHz band in eight important Circles (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP-West and West Bengal) by a period of 12 years - from 2021 to 2033.
In addition, RCOM will assume the liability to pay the Department of Telecommunications instalments for SSTL`s spectrum, amounting to Rs 390 crore per annum for the next eight years.
With Agency Inputs