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Giants ‘Reliance’ and ‘Aircel’ to Merge Mobile Businesses

India’s fourth biggest mobile phone company, Reliance Communications, is in talks with another telecom company Aircel, for a potential union of the wireless or mobile businesses. As per industry experts ‘Reliance’ and ‘Aircel’ to merge mobile business for better productivity and reach.

Reliance Communications, an Anil Ambani led telecom company announced on Tuesday December 22, 2015:

“It has entered into a 90-day exclusivity period with the shareholders of Aircel Limited, to consider the potential combination of the Indian wireless businesses of RCom and Aircel.”

RCom also told that merger of the two firms are to expected significant benefits of in-country integration.

“The discussions are non-binding in nature. The idea is to mutually derive expected substantial benefits of in-country consolidation, including operating expenditure and capital expenditure synergies and revenue enhancement.”

The potential union will exclude RCom’s towers and optical fiber framework, for which the company is proceeding with an asset sale. Reportedly, RCom is already in the process of buying another Indian mobile business of “SSTL” under MTS label.

Reliance Communications

The union of RCom, MTS and Aircel will form a separate entity and will hold 19.3% of the total scale allocated to the the industry which is reported to be the highest in the country. The new entity, which is in works, will hold a wide range across all alloted bands for 2G, 3G and 4G services.

RCom has a customer base of over 118 million, including over 2.6 million individual overseas customers.

 Source: CXOToday