New Delhi Oct 23 (IANS) Reliance Communication (RCOM) has received the Department of Telecommunications (DoT) approval for the merger of the wireless business with Sistema Shyam Teleservices Limited (SSTL) a company statement said here on Monday.
Sistema Shyam Teleservices Limited operates under MTS brand in India.
With this RCOM will acquire approximately 2 million customers and additional annual revenues of around Rs 700 crore.
In addition RCOM will acquire 30 MHz of the most valuable and superior 800/850 MHz band spectrum ideally suited for 4G LTE services 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 the statement said.
"As a result of the demerger SSTL will receive a 10% equity stake in the fully diluted equity share capital of RCOM. In addition RCOM will assume the liability to pay the DoT instalments for SSTL s spectrum amounting to Rs 390 crore per annum for the next eight years " the statement added.
The closure of the transaction is expected by the first week of November 2017.
--IANS
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