Reliance Communications to sell towers to Brookfied

towerAnil Ambani-promoted Reliance Communications has agreed to sell its tower assets to Brookfield Asset Management. RCOM will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction.

It has signed a non-binding Term Sheet with Brookfield Infrastructure Group in relation to RCOM’s nationwide tower assets and related infrastructure.

Under the Term Sheet, the specified assets are intended to be transferred from Reliance Infratel Ltd. (RITL) on a going concern basis into a separate SPV, to be owned by Brookfield.

RCOM will continue as an anchor tenant on the tower assets, under a long term agreement, for its integrated telecommunications business.

RCOM will also enjoy 49% future economic upside from the towers business, based on certain conditions, the company said.

The deal has come ahead of the merger of the company with Aircel Cellular. The sale and monetization of the tower assets was seen as a pre-requisite for the successful merger of the company with Maxis-owned Aircel.

The sale transaction will bring in much-needed cash to the balance sheet of the company and help reduce its high levels of debt.

RCOM and Brookfield expect considerable growth in tenancies based on increasing 4G offerings by all telecom operators, and the fast accelerating trends in data consumption, which are expected to contribute to significant growth in revenues and profitability for the towers business in the future.

RCOM and Brookfield also see several opportunities for consolidation in the towers industry in India that will further enhance growth and value creation in the future. RCOM intends to utilize the proceeds of the proposed transaction solely to reduce its debt.


Investors starting to understand Mukesh Ambani’s telecom game – Angel Broking Investors are only now starting to realize the plan that Mukesh Ambani and his telecom brainchild, Reliance Jio, have put into practice, and are therefore driving stock prices of his company higher, said Angel Broking, a retail-only stock-broker.Reliance Industries share pric...
Bharti Airtel buys Telenor India In a surprise announcement, Bharti Airtel said it was taking over Telenor India, marking the first such transaction since Idea took over Spice Telecom several years ago.Typically, companies in Indian telecom sector sell only assets, such as spectrum, and never the whole unit,...
Spectranet Broadband enters Bangalore, 50 Mbps unlimited at Rs 1,350 Spectranet, one of India's oldest internet service providers, has entered Bangalore, its first market in South India, with aggressively priced broadband plans.The company, which started in Delhi more than a decade ago, is offering 'truly unlimited' 50 Mbps plan for Rs 1,349 per...
Reliance Jio’s 303 4G plan will hit Bharti Airtel, Idea Cellular – Credit Suisse Reliance Jio's new 303 4G data and voice plan will hit revenue and profits at rivals like Bharti Airtel and Idea Cellular, financial services firm Credit Suisse warned, dismissing optimistic interpretations of yesterday's development.On Tuesday, Jio Chairman Mukesh Ambani ann...
BSNL turns net gainer in MNP, to launch 4G at year-end Bharat Sanchar Nigam Ltd, the publicly owned telecom operator, is now 'MNP positive', its chairman and managing director Anupam Shrivastava said, without giving details."BSNL's MNP ratio is positive," Shrivastava said at a customer interaction event today.It is not clear ...
Bharti Airtel likely to counter Reliance Jio’s 303 plan shortly Bharti Airtel, India's largest telecom company, is likely to match Reliance Jio's one-year promotional 4G tariff of Rs 303 per month, according to industry and analyst sources."They have been maintaining that they will match once Jio starts charging for customers," said a s...
Reliance Jio to offer 30 GB, unlimited calls for Rs 303/month from April Mukesh Ambani, chairman of Reliance Jio, confirmed what many feared -- the end of free 4G data will get over on March 31, but also announced a new program called 'Jio Prime', under which subscribers can get 1 GB per day at Rs 303 per month.They also have to pay a one-time...
WATCH LIVE: Mukesh Ambani’s speech on Reliance Jio reaching 100 mln users Mukesh Ambani, chairman of Reliance Jio Infocomm will be giving an update on the performance of India's largest data services provider at 1:30 PM today.You can watch the live broadcast of Mukesh Ambani's speech below.https://youtu.be/2XGyUGM1rXYHIGHLIGHTS OF HIS S...
Mukesh Ambani to announce 100 mln Reliance Jio customers today? Mukesh Ambani, Chairman of Reliance JioMukesh Ambani, chairman of Reliance Jio Infocomm, will make a statement today, 21 February, at 1:30 PM.The statement will be streamed via Youtube and other channels. The link to the live stream will be shared by around 12 PM.Tho...
Reliance Jio added 2 cr subscribers in Dec, Andhra Pradesh leads Reliance Jio, the new 4G operator, has the highest number of subscribers in Andhra Pradesh, followed by Gujarat and Delhi.The company added 20 mln (2 cr) new users in December, its highest ever tally for a single month.The previous record was held by October, when it ad...
BSNL doubles data on 11 existing 3G plans to take on Reliance Jio BSNL, the public-owned telecom services provider, has increased the data allowance of more of its 3G plans, days after announcing two new tariff plans.Last week, the company has increased the allocation on two of its popular recharges by double or more.The Rs 78 pack,...
Idea Cellular posts first-ever loss due to Reliance Jio impact Idea Cellular reported a loss of Rs 479 cr for the October-December quarter, hit by Reliance Jio's free offerings, the first loss in last 40 quarters since its IPO in 2007."The Indian mobile industry witnessed an unprecedented disruption in the quarter of Octoberto December ...
India Oil, BPCL, HPCL merger will reduce wastage of resources- Fitch A proposed merger of Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp will reduce inefficiencies across the sector and result in enormous savings, ratings agency Fitch said.It would also create an entity that is better placed to compete globally for resourc...
Reliance Jio carries 80% of traffic on next-gen Internet technology IPv6 roll-out on Jio. source:APNICReliance Jio, the new entrant to India's telecom landscape, is carrying nearly 80% of its traffic in the next-generation Internet technology, a senior official of the company said.Internet Protocol or IP is one of the languages used by machi...
Reliance Jio is carrying 94% of India’s mobile data, Airtel 2% – Report Incumbents like Bharti Airtel, Vodafone and Idea Cellular are far behind newcomer Reliance Jio in terms of both data coverage and 4G coverage, a report by financial services company Credit Suisse said."Among the cities we surveyed, Airtel/Vodafone/Idea had good coverage in 10...
Facebook biggest beneficiary of Reliance Jio free data It's common knowledge that Reliance Jio's free data service has massively increased Internet usage in India, but a new report throws light on what categories have been benefited and which have not.The biggest beneficiary of the free data offer from Reliance Jio is -- yes,...
Reliance Jio’s 1000-rupee phone likely to work only on its 4G network; feature The market is abuzz with rumors of the impending launch of a 1000-rupee 'feature phone' by Reliance Jio, but comments by Airtel CEO Gopal Vittal suggests that the Mukesh Ambani firm will not be able to launch such a phone without providing a big subsidies. However, doing so would...
Wipro buys InfoSERVER, a Brazilian IT outsourcing company Weeks after acquiring Appirio, Wipro is at it again. This time, it is buying InfoSERVER, an IT services provider focused on the Brazilian market, for $8.7 Mn (Rs 60 cr). Two-decade old InfoSERVER provides custom application development and software deployment services, th...
Bharti Airtel loses 8 mln data users, now behind Reliance Jio Bharti Airtel, India's largest telecom company, reported a loss of around 7.7 mln data users in the three months between October and December, due to the free services offered by Reliance Jio.Jio, on its part, had picked up around 50 mln free data and voice users on its n...
Bharti Airtel’s quarterly results hit hard by Reliance Jio Bharti Airtel, India's largest telecom company, reported disappointing results for the third quarter due to the impact of Reliance Jio's 4G offering.The company reported net profit of 504 cr, which is about half of the consensus estimate on the Street.The revenue was ...
Reliance Jio NOT TO EXTEND free data offer after March Reliance Jio will not be extending its Happy New Year free data offer beyond March 31, according to our sources in the company.The clarification comes in the wake dozens of reports claiming that it will extend the free scheme beyond the March 31 deadline into June."There...
Idea Cellular – Vodafone merger announcement soon? Idea Spectrum HoldingIdea Cellular has put off the trimonthly meeting of its board of directors scheduled to take place tomorrow, raising speculation that it may soon announce a merger or deal with Vodafone India.The meeting was supposed to take on-board results  of the ...
Reliance Jio now allowing unlimited night downloads under Happy New Year plan Reliance Jio is now allowing its users to download an unlimited quantum of data at night under its Happy New Year offer.This is different from the earlier practice of allowing users to consume only 4GB of data per 24 hours.With this new feature, subscribers can downlo...
How to overcome Reliance Jio’s 1GB limit by timing your downloads According to our tests, it is possible to download more than 1 GB using a single Reliance Jio connection using the Happy New Year offer.According to our tests, there is no limit on the number of GBs that can be downloaded under the Happy New Year offer between 2 AM and 5 AM. ...
Vodafone halves 4G data prices: 4 GB at 255 | 22 GB for 999 Vodafone has halved data prices, six months after cutting them by about 40%.Under the new 4G tariff announced today, customers will get 4 GB of data for Rs 250 and 22 GB for Rs 999.These are roughly half of the prevailing data rates in the market.The current data pric...