Reliance Jio to buy out RCom’s wireless assets

jio-rcom-mergerMukesh Ambani-led Reliance Jio announced it will buy the wireless infrastructure assets that include towers, optic fibre cable network, spectrum, and media convergence nodes (MCNs)* of Reliance Communications (RCom) and its affiliates in an all-cash deal. RCom is putting up for sale its towers, optic fibre cable network, spectrum and media convergence nodes to pare losses.It’s big brother Mukesh Ambani to the rescue as Reliance Jio announced its intentions to buy out the Anil Ambani backed Reliance Communications’ wireless business. The Reliance empire was left divided after the death of Dhirubhai Ambani in 2002.
A press statement from RCom mentions that after the purchase Jio will gain over 178,000 kilometres of optic fiber, more than 43,000 cellphone towers and 122.4 MHz of 4G Spectrum in the 800/900/1800/2100 MHz bands. The newly acquired assets are “strategic in nature and expected to contribute significantly to the large-scale rollout of wireless and fibre-to-home services by the company,” the statement from Reliance Jio said.
Jio currently stands at fourth place in the Indian telecom market with 14.59 crore subscribers, as per TRAI data. Post the merger, Jio and RCom are estimated to have a little over 20 crore subscribers. This is a little higher than the third largest operator, Idea with over 19 crore subscribers. However Idea is slated for a merger with India’s second largest telecom player – Vodafone in 2018.

Filed in: 2G Services, 4G Services, Mobile Services, Reliance Communication, Reliance Jio, Stock Market, Subscriber Base, Telecom News, Telecom Operators Tags: , , , ,

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