HOME > BUSINESS > RCom, Aircel makes ‘substantial progress’ in merger talks

RCom, Aircel makes ‘substantial progress’ in merger talks

Reliance Communications, Aircel  merger

Anil Ambani group’s Reliance Communications and Aircel Cellular, a unit of Maxis of Malaysia, have again extended talks for merging the wireless operations of the latter with the former by 30 days.

The companies noted that ‘substantial progress’ has been made in the matter.

“Based on the substantial further progress made, RCOM, MCB and Sindya have mutually extended the exclusivity period between RCOM and Maxis Communications Berhad and Sindya Securities and Investments Private Limited, the shareholders of Aircel, by 30 days to June 22, 2016,” Reliance Communications said in a note today.

The merger talks have been going on for six months now.

The talks were delayed for various reasons, including ongoing reorganization of RCom’s spectrum holdings via sale of airwaves to Mukesh Ambani’s Reliance Jio Infocomm and the merger of MTS with RCom.

In addition, it also makes sense for the two companies to merge only after the upcoming spectrum auction, as, by then, the total quantum of spectrum in the market will go up.

If the total spectrum in the market is higher, RCom and Aircel will be able to hold on to their combined spectrum holdings without running into regulatory holding limits.

Under India’s current rules, no single company should hold more than 25% of the total commercial spectrum or 50% of any single band in any license area.

Aircel has already disposed off 20 MHz of lucrative 4G spectrum in favor of Airtel in eight circles.

In addition, Aircel has extensive holdings in the 2100 MHz 3G band as well as in the 1800 MHz band.

Once the merger is completed, the new entity will almost certainly convert Aircel’s 1800 MHz holding — currently being used for 2G services — into 4G suitable-spectrum by paying ‘liberalization charges’ to the government.

In addition, RCom is also working on a merger with MTS, which will bring in precious 800 MHz spectrum in eight circles. This is also likely to be converted to 4G spectrum.

At the end of the three-way merger, RCom will have a 4G spectrum footprint that will rival that of Reliance Jio and Bharti Airtel and easily outpace that of Idea Cellular and Vodafone India.

Armed with a sharing agreement with Reliance Jio, the mergers are set to make RCom a key player in India’s 4G data market.

All the mergers are being carried out on a share-swap basis.

Individually, these companies would have found it difficult to buy spectrum from the auctions due to strict net worth requirements for bidders. RCom, Aircel and MTS have tremendous amounts of debt on their balance sheets.

Follow ULTRA.news
Bharti Airtel to offer cheap 4G plans for all dongle users – report With new operator Reliance Jio snapping at its heels, incumbent Bharti Airtel has decided to slash its data prices for everyone with the introduction of new 4G dongle plans, Telecom Talk blog reported quoting unnamed sources.At present, Bharti Airtel does not offer any plan t...
Reliance Jio puts more 4G spectrum to use to increase speeds Reliance Jio, the 4G operator that has taken the market by storm, has deployed the extra spectrum that it bought last year, increasing the total spectrum in use in most markets by 20-25%.In most circles, Jio is operating with about 40-50 MHz of spectrum, and with the new sp...
4,196 villages lose Idea Cellular 2G signal as 876 towers taken offline Idea's tower growth, by technologyIdea Cellular, India's third largest telecom operator by revenue, reported a shrinkage in the area and population covered by its 2G network.The number of villages covered by Idea's 2G signals decreased by 4,196 to 3.89 lakh by March end ...
Bharti Airtel to start refarming 2G spectrum for 4G this year India's largest telecom services company by revenue and spectrum holding, Bharti Airtel, will start diverting its 2G spectrum to add to its 4G network in the second half of the ongoing financial year, the company's CEO said.The move will help increase 4G capacity of the o...
Idea Cellular to spend Rs 6,000 cr on VoLTE, expansion of 4G & 3G this year Idea Cellular, the telecom company controlled by the Aditya Birla group, said it will spend Rs 6,000 cr to expand its 3G and 4G services in the current financial year.Idea tower additions per yearThe planned investment of Rs 6,000 cr has been "earmarked for expanding bro...
Govt yet to decide on 700 MHz spectrum for BSNL Relative cell sizes | source:DoJ, US GovGovernment of India is yet to say 'no' to a request by Bharat Sanchar Nigam Ltd for the allocation of one block of spectrum in the precious 700 MHz band to enable it to launch 4G services in rural areas.The company had sought one b...
BSNL increases 3G data allocation for most prepaid recharges BSNL's new 3G plansReacting to falling usage of data on its network, Bharat Sanchar Nigam Ltd has increased the data available on its recharges, and introduced a daily data scheme priced at Rs 3099 for 90 days.The operator had, on Apr 1, doubled the data available on mo...
RCom shareholders approve Aircel merger The shareholders of Reliance Communications approved the demerger of the wireless operations of the company into Aircel Limited and Dishnet Wireless Limited, the Anil Ambani Group company said.The Scheme was also approved at a meeting called on the directions of the National ...
Why Reliance Jio will keep data prices low for 2 years: Credit Suisse explains Wireless data prices in India, which crashed from Rs 250 per GB to about Rs 10 per GB after the entry of Reliance Jio, will continue to remain under pressure for at least two more years, said analyst firm Credit Suisse.That is the minimum amount of time that the new entrant w...
Net Neutrality: Vodafone wants right to manipulate Internet videos Telcos want to be able to reduce video qualityVodafone India said it would like to be given the power to manage the size of videos watched by users on its mobile network and lower it automatically "for overall quality welfare".Participating in the discussions related to ...
Airtel to offer 2 GB/day for ₹349, 3.5GB for 999 to take on Reliance Jio Airtel will unveil cheaper data tariffs soonIndia's largest telecom services company by revenue -- Bharti Airtel -- is in the process of rolling out new plans including one that offers 2 GB of data per day at just Rs 349 in addition to unlimited calling for 28 days, according ...
Reliance Jio launches Dhan Dhana Dhan offer with three times validity as Summer Surprise Reliance Jio is all set to relaunch its earlier 303 and 499 plan, but with three-times the earlier validity, according to sources.This would help it side-step issues around continuing with free services.UPDATE: The new offer will be called Dhan Dhana Dhan and will have ...
TRAI’s MySpeed app pulled from Google Play Store The TRAI MySpeed AppThe Telecom Regulatory Authority of India's network benchmarking app MySpeed is no longer listed on the Android Play Store.The link for the app throws an error saying 'the requested URL was not found on this server'.It is not clear whether TRAI pu...
Reliance Jio promises new plans in place of Summer Surprise The new banner on RJio websiteReliance Jio has officially withdrawn its Summer Surprise offer on its website and put up a new banner saying that it will be introducing new plans soon."We are updating our tariff packs and will be soon introducing more exciting offers," th...
Reliance Jio helped India save Rs 18,000 cr, but rivals took the hit Free services from Reliance Jio, the telecom services arm of Reliance Industries, brought down the amount of money paid by telecom subscribers in India by about Rs 4,400 cr in just the last three months of 2016, an analysis of the sector data revealed.The numbers indicate tha...
Reliance Jio could replace Summer Surprise with new offer after TRAI order Reliance Jio's withdrawal of its Summer Surprise Offer is unlikely to make any difference to most of its customers, and the company may even come up with a new version of the plan to comply with the ban."The Telecom Regulatory Authority of India (TRAI) has advised Jio to with...
India’s 3G networks creak under freebie overload; 4G also slows MySpeed, the speedtesting platform operated by the Telecom Regulatory Authority of India, has revealed a sharp dip in wireless data speeds across operators in March compared to the previous month.The declines were visible in both 4G as well as 3G services, but were more prono...
Reliance Jio Summer Surprise plan capped at 1GB/day till Apr 15 Many of those who were looking forward to using more data per day than the 1 GB allotted to them under Reliance Jio's Happy New Year scheme are likely be disappointed as it looks like the 1 GB cap will remain under the Summer Surprise offer as well.Even those Prime Members wh...
Reliance Jio Prime Membership extended, 3 months free service offered Reliance Jio, the telecom services provider from Mukesh Ambani-led Reliance Industries, has extended the period for its subscribers to sign up for its Membership program up to Apr 15. It will also provide three months of free service for any member who signs up for its monthly ...
Reliance Jio Prime recharge rush takes down Billdesk payment gateway The rush of last-minute recharges for availing Reliance Jio's Prime Membership offer seems to have taken down Billdesk, one of India's largest payment processing services.As of 10:40 AM, both the Billdesk website and the payment gateway service has been down for several m...
Reliance Jio Prime Membership closing in on 50 mln mark A Jio banner advertising the Prime offerReliance Jio, India's newest telecom operator is set to add almost 50 mln users to its Prime platform, according to reliable sources.As of now, the company has added close to 43.5 mln, with another 3-4 mln additions expected in the...
Reliance Jio allows ‘queuing’ of 303, 499 recharges for 1 year Buy One, Get One offer valid till Mar 31With on four more days remaining before the start of paid services on Reliance Jio, India's largest telecom operator by volume, the company has urged its sales agents to promote the idea of 'queuing' up recharges for a year."We hav...
Airtel buys high-capacity 4G spectrum from Tikona in five circles Airtel Chairman Sunil MittalBharti Airtel said it has agreed to buy 4G spectrum from Tikona Digital Networks in five telecom circles, giving the company a pan-India footprint in the crucial capacity band and helping it compete on an even footing with Reliance Jio.Airtel ...
BSNL offers 2GB/day + free calls for Rs 339 per month Bharat Sanchar Nigam Ltd, the state-owned telecom services provider, has launched India's cheapest daily-data pack at Rs 339 per month.For the amount, users will get 2 GB of 3G data plus 25 minutes of free calls per day.The closest tariff plan to this offer is from Re...
Vodafone Idea merger to save Rs 7,000 cr per year; one-time cost Rs 3,000 cr The Idea Cellular-Vodafone merger announced today will save about Rs 14,000 cr in operating expenses per year for the combined entity after four years of merger, the two companies said.However, due to the applicability of spectrum caps on the combined entity, the deal will al...